Nigeria lost $46b to oil theft in 12 years—-NEITI

…As CJID reiterates commitment to reduce methane emissions in Nigeria

By Chris Ochayi

The Executive Secretary of Nigeria Extractives Industries Transparency Initiatives, NEITI, Dr Orji Ogbonna Orji, has disclosed that
Nigeria lost over 619.7million barrels of crude oil valued at $46.16 billion through oil theft in 12 years.

Dr. Orji made the disclosure on Tuesday in Abuja , said the period was between 2009 and 2021, while promising to publish the 2022/23 industry reports in the oil and gas industry and solid minerals industries in September this year.

Meanwhile, the Director of Programmes, Centre for Journalism Innovation and Development, CJID, Akintunde Babatunde, has empathized on the commitment of the Centre towards the reduction of methane emissions in Nigeria’s oil and gas sector.

The duo amongst other dignitaries spoke at the seminar on ‘Strengthening Methane Emissions Reduction in Nigeria’s Oil and Gas Sector’ organised by Natural Resources Governance Institute, NRGI.

Dr. Orji n addition, said Nigeria lost 4.2 billion liters of petroleum products from refineries, valued at$1.84 billion at the rate of 140,000 barrels per day, from 2009 to 2018.

The NEITI boss also noted that the total value of crude losses between 2009 and 2020 is higher than the size of the country’s foreign reserves and almost 10 times of Nigeria’s oil savings in the Excess Crude Account.

While the loss in revenues, he said, could be computed, the damage to the environment, community health, livelihoods through dangerous emissions is difficult to quantify.

According to him, “As we are all aware, Nigeria launched the country’s plan to transit from fossil fuel to renewable energy in August 2022. The plan proposed a transition to net-zero 2050 carbon emission by 2060, ten years later than the global target for energy transition.

“The main trust of the plan is to cut carbon emissions including methane emissions reduction or total elimination and provide the infrastructure for renewable energy. Other key objectives include economic growth through energy access, energy efficiency, energy security, environmental sustainability, economic diversification, job creation among others.”

To address these needs and more, Orji noted, the Nigeria Energy Transition Plan (NETP) estimates that $1.9 trillion would be required.

This, he said, translates to spending about $10 billion annually and investment requirements of nearly $40 billion annually to achieve the country’s transition targets by 2060. The plan relies on private capital, mostly from foreign investments for sustenance, NEITI, noted.

“The challenge of implementing Nigeria’s energy transition plan and achieving net zero target by 2060 is reflected in the huge financial resources required to produce renewable energy to meet domestic industries demands and our large population of over 200 million which is even projected to exceed 250 million by 2050.

“This is why NEITI publicly welcomed the recent demonstration of commitment to address the climate change, energy transition and environmental sustainability challenges by President Ahmed Bola Tinubu Administration.

“We, in NEITI, are encouraged that apart from setting up the Presidential Committee which President Tinubu himself will chair, focal persons were appointed and handed over specific mandates and responsibilities of co-ordinating and overseeing all policies and programmes on climate action and green economic solutions required to revive, redefine and reposition the country’s interests.

“However, NEITI has made a strong case to Mr President for a seat on that Presidential Council for several reasons. NEITI seeks a slot on the council to help provide understanding of the content, context and comprehensive nature of the issues involved, the associated risks and the potential opportunities with credible information and data.

“By our work and nature of operations, NEITI is equipped to support the country’s engagement in the areas of provision of access to credible information and data.

“This will be required to drive forward-looking analysis, underpin dialogue on policy responses as well as promote evidence-led public debate.

“In addition, credible information and data are also essential in policy formulation and analysis of the legal and fiscal framework governing the extractive industries, climate change and greenhouse emissions.

“Data is equally important in addressing climate change induced environmental problems, public education and enlightenment that would support the understanding of government policies related to energy transition”, he said.

Speaking earlier, the Director of Programmes, Centre for Journalism Innovation and Development (CJID), Akintunde Babatunde, explained that the goal of the event is to reduce the emissions of methane in Nigeria which is more dangerous than carbon dioxide.

Babatunde said, “Our goal is to significantly reduce methane emissions in Nigeria’s oil and gas sector, right-size our gas ambitions, and ensure a just and inclusive energy transition” he noted.

He added that the 2050 Long-Term Vision sets a bold ambition to reduce emissions by 50 per cent and move toward net-zero emissions across all sectors in a gender-responsive manner.

According to him, ” The Energy Transition Plan aims to achieve net zero by 2060, focusing on reducing emissions across five critical sectors and leveraging gas as a transition fuel.

“These initiatives are crucial for our sustainable development, but they also come with challenges, particularly in balancing our gas expansion ambitions with the need to mitigate environmental and social risks.”