NEITI Reports: Nigeria’s Oil and Gas Sector Rakes in $764.52 Billion Between 1999-2021

Dr. Ogbonnaya Orji, the Executive Secretary of the Nigerian Extractives Industries Transparency Initiative (NEITI), shared revealing statistics during his recent address at the Nigeria Energy Forum, hosted by InfoStride News. According to Dr. Orji, Nigeria’s oil and gas sector has generated a substantial $764.52 billion from 1999 to 2021. This impressive revenue is a testament to the country’s significant role in the global energy landscape.

Nigeria’s oil reserves currently stand at 37.050 billion barrels, comprising about 2.1% of the world’s total reserves. In addition to this, the nation boasts a remarkable gas reserve of over 209 trillion cubic feet, making up 2.6% of global reserves. Dr. Orji emphasized the strategic importance of the conference, especially in light of Nigeria’s ongoing energy challenges.

The country faces a considerable energy gap, security issues in the energy sector, and struggles with the insufficient deployment and utilization of available energy resources. Dr. Orji stressed the urgency of addressing environmental concerns, highlighting the need for policies aimed at methane abatement. Methane, a potent greenhouse gas, has a higher warming potential compared to carbon dioxide, especially in the short term.

Aggressive policies targeting issues such as oil theft, sabotage, and pipeline vandalization are crucial not only for the country’s energy security but also for environmental preservation. Dr. Orji emphasized the role of these policies in reducing methane emissions, which significantly contribute to climate change.

The NEITI policy brief shed light on the losses suffered by Nigeria in the oil and gas sector from 2009 to 2020. Over this 12-year period, the country experienced a substantial loss of 619.7 million barrels of crude oil, valued at $46.16 billion or N16.25 trillion. This equates to over 140 thousand barrels of oil lost per day during the highlighted period.

Further challenges emerged from 2009 to 2018, with Nigeria losing 4.2 billion liters of petroleum products from refineries, amounting to a value of $1.84 billion. Additionally, between 2010 and 2020, the country incurred losses of N11.3 trillion on turnaround maintenance for refineries.

Despite these challenges, the Nigerian National Petroleum Company Limited has provided assurance that by December 2024, all local refineries will be operational. This commitment aims to reduce Nigeria’s dependence on petroleum product imports, marking a positive step toward enhancing the country’s energy independence and security. The ongoing efforts to address issues such as oil theft and refinery challenges are pivotal for sustaining Nigeria’s position as a key player in the global energy market. InfoStride News continues to play a crucial role in disseminating information about Nigeria’s energy landscape, fostering awareness and dialogue on vital issues affecting the nation’s economic prosperity and environmental sustainability.