The House of Representatives has received the 2021 Oil and Gas Report of the Nigerian Extractive Industries Transparency Initiative (NEITI) for the first time ever, as part of efforts to support the Federal Government’s economic recovery and growth plan.
The report was presented by Hon. Ikenga Ugochinyere, chairman of the House Committee on Petroleum Resources (downstream), and co-sponsored by Hon. Alhassan Ado-Doguwa, chairman of the Committee on Petroleum Resources (upstream). It was sent to both committees for further investigation into oil revenues that were not paid or were stolen, bad contracts, and spending by federal government ministries, departments, and agencies that was not authorized by the budget.
Hon. Ugochinyere used Section 4(2) of the Constitution of the Federal Republic of Nigeria 1999 (As Amended) and Order 18 Rule 75(2)(k) of the Standing Orders of the House of Representatives to explain that the House was allowed to receive and look over the NEITI report. NEITI was created in 2004 to make sure that the management of Nigeria’s natural resources was open and accountable.
He also noted that Section 4(3) of the NEITI Act mandates NEITI to present its report to the National Assembly for debate and discussion, but lamented that no session of the House of Representatives has ever done so since the enactment of the Act.
He expressed displeasure that the 2021 Oil and Gas Report revealed a rise in the number of unremitted revenues to the Federation to the tune of $9.85 billion and a total crude oil and gas revenue of $23.046 billion, indicating a 13 percent increase from the total of $20.430 billion realized in 2020.
He added that according to the report, 54 companies accounted for a total metered crude oil production of 634.60 million barrels, out of which 68.47 million barrels were lost to production adjustments, measurement error, and theft or sabotage, leaving a balance of 566.13 million barrels.
He further stated that the report showed that the total outstanding taxes payable to FIRS as of July 31, 2023, was US$ 13.591 million, while the total amount of outstanding Federation revenue payable to NUPRC as of December 31, 2022, stood at US$8.251 billion.
He expressed concern that for downstream operations, NEITI reported that there was a significant discrepancy between the volume of PMS imported in 2021 under the Direct Sale Direct Purchase (DSDP) arrangement based on NNPC’s records and the volume of PMS imported as per DPR records, which implies that there is no independent third-party confirmation of product importation volume and subsidy value.
He said that, in line with the resolve of the Rt. Hon. Tajudeen Abass and the Rt. Hon. Benjamin Kalu’s leadership to champion a People’s Parliament in the 10th House of Representatives, it was necessary that the House receive and debate the 2021 NEITI oil and gas report.
He urged his colleagues to support his motion for a thorough investigation into the findings and recommendations of the report, with a view to recovering all unremitted revenues, sanctioning erring companies and officials, plugging all revenue leakages, and ensuring good governance in the oil and gas sector.