NEITI:  Oil, Gas Industry Contributed $23.0456bn to the Nigerian Economy in 2021

*Solid minerals sector generated N193bn 

*Says 2022-2023 audit report to be released next month

Peter Uzoho

The Nigeria Extractive Industries Transparency Initiative (NEITI) has said the oil and gas sector contributed $23.0456 billion to the country’s economy in 2021, representing a significant portion of the national revenue.
The agency also revealed that the solid minerals sector generated N193 billion in the year under review, saying that marked a 30 per cent increase from the previous year’s N143 billion.

The Executive Secretary of NEITI, Dr. Ogbonnaya Orji, stated this in Lagos during the NEITI-Companies Forum Meeting, tagged, ‘Beyond Validation: Strengthening NEITI Companies Engagement for the Sustainability of the EITI Process’.
He added that the 2022-2023 NEITI oil, gas, and solid minerals audit report was currently at an advanced stage and would be released next month.
“In 2021, the oil and gas sector contributed $23.0456 billion to the Nigerian economy, representing a significant portion of the national revenue.

“On the other hand, the solid minerals sector generated N193 billion in 2021, marking a 30 per cent increase from the previous year’s N143 billion, while the number of companies operating in the sector grew from 1,200 in 2020 to 1,214 in 2021, reflecting a positive trend in industry participation and compliance. However, this is still a far cry from the potentials of the sector’s contribution to the Nigerian economy,” Orji stated.

He said the NEITI 2021 reports also highlighted increased disclosures across both sectors, with 94 per cent of oil and gas companies and 87 per cent of solid minerals companies fully compliant with the transparency agency’s reporting standards.
He noted that there was a significant improvement in the reconciliation of financial discrepancies, with unresolved differences reduced to less than one per cent of total revenues reported, saying that indicated an improved reconciliation of data and information that was disclosed in the reports.

He appreciated the 207 oil, gas and mining companies that were covered in the ongoing 2022-2023 industry reports, saying that they comprised 70 oil and gas companies and 137 solid minerals firms.
These companies, both large and small, according to him, have shown remarkable cooperation and commitment to ensuring that the EITI standard and the corresponding requirements was upheld in Nigeria.

Orji stated, “While commending you for your partnership in our engagements, let me emphasise the importance of your cooperation and support to NEITI in its conduct of the 2022-2023 industry report which is very vital to making the September 2024 set date for the release of the reports realiseable.

“NEITI seeks your continuous support at every stage of the conduct of its industry reports. The 2022-2023 industry report is presently at an advanced stage. We are working assiduously towards meeting the target date of September 2024. I urge you to provide data and information needed within the scope of our reports in record time to enable us reconcile and complete the report cycle at the stipulated time.”

In addition, the executive secretary said the last validation exercise scored the companies 60 points out of 100, on the stakeholders’ engagement component.

He said the score ranked ‘Mostly Met’ which indicated a backsliding from the previous validation ranking of satisfactory progress.

He said the day’s NEITI-Companies Forum meeting was to refocus their attention on the task of sustaining Nigeria’s membership of the global Extractive Industries Transparency Initiative (EITI).

This, he pointed out, required that companies operating in the EITI process not only disclose information and data about their operations, but work with other stakeholders to sensitise their host communities on the benefits of the EITI.

Furthermore, he said companies were to participate actively in all NEITI activities and engagements and provide all necessary support, particularly at the sub-national levels where the companies’ operations were domiciled.

In his remarks, the South-west Zonal Representative on NEITI Board, Mr. Taiwo Olasupo, pointed out that there were three major stakeholders directly involved in the implementation of EITI globally, including Nigeria.

He mentioned them as the government that owns all the natural resources in Nigeria, the citizens represented by the civil society, and all the extractive industry companies that extract the minerals in the country and turn them into revenues for the benefits of both the government and the citizens.

“This is why the NEITI Board places very priority in its relationship and engagements with the oil, gas and mining industry companies well represented at this meeting. For us in the current Board, without the companies there is no industry.

“The decision by our Board to place priority attention to the NEITI-Companies Forum is to have a forum to listen to your concerns, receive your advice, suggestions and expectations from NEITI. This is what this meeting and this forum is all about,” Olasupo noted.

He said the NEITI-Companies Forum was also an important forum to explore areas to strengthen partnership with each other, share information and learn from each other.

“Our responsibility as a Board is to take decisions and constructive contributions that will emerge from this meeting seriously and see how it could guide the new NEITI Board in its policy formulation and strategic planning.

“On this note, I urge you to please contribute meaningfully to the discussions and provide useful feedback that will support our engagements with the companies, promote friendship, networking, impactful and effective NEITI-Companies collaboration in the overall best interest of improving the business environment in the oil, gas and mining industries,” he added.