Nigeria lost N16.25trn to oil theft from 2009 to 2020 – NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) says Nigeria lost about N16.25trn to crude oil theft and sabotage of crude assets between 2009 and 2020.

NEITI said the amount lost was a result of the loss of over 619.7 million barrels of crude oil within this period.

Ogbonnaya Orji, the Executive Secretary of NEITI, who revealed this at a multi-stakeholders roundtable on the approval of the agency’s 2022 industry report on Wednesday also said that Nigeria spent N13.7 trn on subsidy payments between 2005 and 2021.

He also announced that unlike previous reports that were prepared by foreign companies, the subsequent ones were prepared by two local companies which has helped to increase the capacity of indigenous companies.

The report was adopted at the multi-stakeholders roundtable with some members of civil society groups calling for minor amendments to immaterial errors that entered the report.

At the same event on Tuesday, NEITI said it will begin providing baseline information and data on the use and management of 13 percent derivation paid to oil producing states as well as details of the country’s petrol consumption.

This development will provide critical data required to monitor how much is being allocated monthly to oil-producing states and their management is a fraught political issue as states with solid minerals have canvassed to be included in the list.

Petrol consumption in Nigeria has been the subject of intense interest following the removal of subsidies. Prior to scrapping petrol subsidies, petrol consumption was officially said to be around 66 million litres daily, but the bulk of that reportedly was smuggled outside the country. Since its removal, consumption has fallen by a third, according to figures from the government regulator.

Orji said the baseline study is important to determine if the states are getting their dues and if the government is paying what it should.