Nigeria has recorded a 79% reduction in crude oil theft, a 15% decline in oil and gas revenues, and an 8% decrease in production volumes between 2022 and 2023, with the reserve-replacement ratio steadily declining, the Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed.
These findings were revealed during the launch of a research report on the impacts of energy transition on Nigeria’s economy held in Abuja last week.
Speaking at the event, NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, attributed the progress in combating oil theft to improved resource management. He highlighted that NEITI’s 2023 Oil and Gas Industry Report showed significant progress in curbing crude oil theft, with a 79% reduction in losses.
He commended the office of the National Security Adviser, the Nigerian Armed Forces, and other security agencies for their decisive actions, which he said have been instrumental in achieving this outcome. Dr. Orji urged security agencies to sustain the momentum in addressing crude oil theft, stressing that maintaining vigilance is crucial for protecting Nigeria’s resources.
Dr. Orji also detailed other critical findings from NEITI’s 2023 report, noting that Nigeria experienced a 15% decline in oil revenues and an 8% reduction in production volumes between 2022 and 2023. Additionally, the reserve-replacement ratio has continued to decline, posing significant challenges for the country’s oil sector.
In his remarks on behalf of the NEITI Board, its Chairman, Senator George Akume, represented by the alternate Chair, Ambassador Mathew Adoli, emphasized the urgency for Nigeria to strategically respond to the challenges and opportunities presented by the global transition to cleaner energy sources.
“The transition from fossil fuels to renewable energy is no longer an abstract concept. It is now a reality influencing policies, markets, and investment decisions worldwide. For Nigeria, an oil-dependent economy, this transition presents both profound challenges and significant opportunities,” Adoli stated.
He stressed that Nigeria’s ability to navigate the global energy transition would determine the sustainability of its energy sector and broader economy. According to Adoli, the country must adopt a proactive approach to address the economic and environmental realities of the transition from fossil fuels to renewable energy sources.
The NEITI research launch highlighted the significance of addressing these pressing issues, especially as Nigeria grapples with declining revenues, shrinking production volumes, and a global energy landscape increasingly shaped by renewable energy adoption. NEITI’s findings underscore the need for coordinated efforts to secure the future of Nigeria’s energy sector while preparing for the inevitable shift towards cleaner energy alternatives.
The event also reinforced NEITI’s commitment to transparency, accountability, and sustainable resource management, urging policymakers, industry stakeholders, and the public to work collaboratively in building a resilient energy sector capable of navigating the challenges of the energy transition.
