The Nigeria Extractive Industries Transparency Initiative (NEITI) has appealed to President Bola Tinubu to revisit and implement the report of the Presidential Investigation Panel on oil theft, vandalism and sabotage.
NEITI Executive Secretary, Dr Orji Ogbonnaya Orji, made the call at the ongoing five-day NEITI Board Retreat/Meeting on Monday in Lagos.
The executive secretary said that the report was presented to the office of the Chief National Security Adviser.
Orji said that the report contained detailed recommendations on how oil theft and vandalism could be addressed.
According to him, NEITI is so passionate on the report on how foreigners were conniving with our own nationals to steal crude oil.
“Our crude oil production ought to have been two million barrels per day but we are doing less and it is affecting our revenue.
“No foreigners can come into the country and steal crude oil with our Mineral Resources without the connivance of our nationals,” he said.
He emphasised that the retreat was an opportunity to reflect on the role of NEITI in shaping a new direction for the extractive industry.
“This requires robust discussions that will bring about ideas to deal with the current challenges of oil theft, illegal mining, stealing of Nigeria’s precious minerals and pipeline vandalism.
“Also, damage to the environment and other governance challenges that have contributed to loss of revenues and investment opportunities in the sector should be addressed.
He stressed that the retreat was expected to chart a course for the Board by aligning its mission of fostering transparency and accountability in Nigeria’s extractive industries.
He said, in 2003, Nigeria took a bold step by voluntarily signing up to the global Extractive Industries Transparency Initiative (EITI).
According to him, the decision was centered in the belief that transparency in the extractive sector would pave the way for sustainable development and poverty reduction in resource – rich countries.
Orji said that the global transition from fossil fuels to renewable energy sources poses significant risks to countries that depend heavily on hydrocarbon-based natural resource-revenues for survival.
“Our country, Nigeria is heavily dependent on oil revenues for survival.
” It is within the ambit of this Board to support our government and citizens with timely policy decisions and strategies to deal with this unavoidable unfolding development in the extractive sector.
“At current dependency levels, Nigeria already faces significant threats to its economy from the prospect of a permanent decline in global demand for crude oil.
” Given the fiscal problems Nigeria has experienced from short-term disruptions in crude oil and gas output, the much longer-term and permanent decline in demand would have far-reaching impact on the country’s economy,” he said.
Orji said: “In 2021, crude oil and gas accounted for 46 per cent of energy use and 78 per cent of electricity generation in Nigeria.
“The transition would therefore require significant financial investment for the country to generate renewable energy to replace energy previously generated from carbon fuels.
“This financing (and technological) burden is in addition to the equally significant amount of money that is required to close Nigeria’s current energy supply gap.
“Figures contained in our 2009 to 2020 audits have put Nigeria’s losses to crude oil theft over a 12-year period at 619.7 million barrels valued at $46.16 billion or N16.25 trillion.
“Similarly, between 2009 and 2018, the country also lost 4.2 billion litres of petroleum products from refineries valued at $1.84 billion.
” These losses and their attendant negative effects on the economy made the President then to constitute a Special Panel on Oil Theft /Losses to study the situation against current realities and make recommendations on how to fight the menace,” Orji explained.
In his remarks, Sen. George Akume, the Board Chairman, NEITI, commended the newly inaugurated board member.
Akume said the Board was carefully selected based on their individual merits, their diverse competencies, skills, knowledge, integrity and track records of service in their previous assignments
Akume said” Your appointment and inauguration, which is taking place here today, is another positive statement of President Bola Tinubu’s open support and commitment to transparency.
“Also accountability in the management of our economic resources, and especially given the mandate and objectives of the Nigeria EITI.
“The present administration is passionate and fully committed to the global Extractive Industries Transparency Initiative (EITI), the work of NEITI and the visible impacts which EITI process has achieved so far in Nigeria.
“As you are aware, the extractive industry is very strategic to Nigeria’s economy and for this administration’s economic agenda, the sector holds the future,” he said.
The Board chairman said that transparency and accountability in the management of the national resources is equally central to anti-corruption agenda of the present government.
He said that Nigeria was therefore irrevocably committed to the implementation of EITI in the oil, gas, and mining industries.
“Our faith in the EITI process is not just because it is key to these two key government agendas, but also because, over the years.
“NEITI has demonstrated a high degree of competence, integrity and commitment to the values that the country requires to achieve economic growth and development in the sector through availability of reliable information,” he added.
In his goodwill message, Gov. Babajide Sanwo-Olu of Lagos State, said that for Nigeria to fully harness its abundant natural resource endowment there was the urgent need to re-examine the existing laws that vest control over oil and other mineral resources.
Sanwo-Olu was represented by Mr Abiodun Ogunleye, the state Commissioner for Energy and Mineral Resources.
Sanwo-Olu said there was the need for review of these laws which has become very urgent if the federal government’s policy on “Ease of Doing Business” is to succeed especially at the sub-national levels.
The governor said that the review was also important to promote investments in the extractive industry and diversify the nation’s economy.
“To this end, the federal government and its agencies needs to engage more with the private sector land sub national governments in the development of the nation’s natural resource.
“The areas of engagement include, solid minerals development, host community programs, environmental sustainability, energy efficiency, domestic resource mobilisation.
” And poverty reduction initiatives which are at the center of realizing the impacts of the global extractive industries transparency initiative in resource-rich countries like Nigeria.
” I assure you that Lagos state government is open to partnership with NEITI in this direction,” he said.
transparent and fair distribution of revenues generated from the extractive industries among federal, state, and local governments.
Danladi said this includes adhering to the principles of the 13 per cent derivation fund for oil-producing states.
She said there was the need to utilise revenues from extractives to invest in public infrastructure, education, healthcare, and other critical sectors that improve the quality of life for all Nigerians.
She said there should be meaningful consultation with local communities impacted by extractive activities.
” Their concerns and inputs should be considered in decision-making processes.
“We expect the new board to foster an inclusive environment where civil society, local communities, industry players, and government bodies can engage in a regular and constructive manner.
“We expect the new board to enhance efforts in making data related to the extractive industries easily accessible and understandable to the public.
“Open data policies should be strengthened to ensure that all stakeholders, including local/host communities, can access and use this information effectively, including contracts, revenue streams, production volumes, and environmental impact assessments.
” This transparency is crucial for holding both companies and government accountable.
