NEITI reports Nigeria has lost $1.4 billion in unremitted gas royalties and flare penalties.
The recent revelations by the Nigeria Extractive Industries Transparency Initiative (NEITI) underscore a significant financial loss due to unpaid gas royalties and penalties for gas flaring, totaling $1.4 billion. This disclosure was made by Ogbonnaya Orji, NEITI’s executive secretary, during a roundtable event in Abuja organized by the BudgIT Foundation.
Orji highlighted NEITI’s 2021 report on the oil, gas, and mining sectors, emphasizing the need for deliberate investments in solid minerals, gas infrastructure, human capital development, and low-carbon hydrogen utilization. These areas are critical for Nigeria’s response to energy transition challenges and climate change impacts.
The NEITI report detailed unremitted revenues, including $559.8 million from gas royalty payments and $828.8 million from unpaid penalties for gas flaring. Orji stressed the implications of excessive gas flaring, which surpasses utilization levels, posing risks to global zero emissions goals.
Moreover, he called for a review of Nigeria’s gas commercialization policy to align with global climate commitments and green economic solutions. NEITI, supported by international partners like the Ford Foundation, has initiated a study on the economic impacts of energy transition in Nigeria. This study aims to assess effects on revenue, jobs, livelihoods, environment, food security, gender issues, and emissions control.
In alignment with these efforts, Ishaq Salako, Minister of State for Environment, highlighted Nigeria’s initiatives under the National Climate Change Policy and Climate Change Act. These policies provide a comprehensive framework for national climate action and emphasize transparent budgeting in climate-related projects.
Salako also announced the launch of Nigeria’s National Green Bond Programme, which has issued two sovereign green bonds, raising N25.69 billion. These funds support 39 projects across afforestation, renewable energy, transportation, agriculture, and water resources, promoting sustainable development and reducing greenhouse gas emissions.
Overall, the NEITI report and the subsequent discussions at the roundtable reflect Nigeria’s commitment to addressing energy transition challenges through policy reforms, investments, and international collaborations aimed at achieving sustainable economic growth while mitigating climate impact.
