The Nigeria Extractive Industries Transparency Initiative has revealed that oil companies and some government agencies owe the federation about N1.5tn in outstanding oil and gas remittances.

NEITI’s Executive Secretary, Dr Orji Ogbonnaya Orji, stated this at the 2025 NAEC Energy Conference held in Lagos on Thursday.

According to Orji, the debts were uncovered in NEITI’s 2021–2022 Oil and Gas Industry Reports, which showed that while Nigeria earned $23.04bn in 2021 and $23.05bn in 2022 from the sector, several entities failed to remit revenues due to the government.

These funds, he said, could have been used to significantly support energy infrastructure, education, and healthcare if recovered.

“The NEITI 2021–2022 Oil and Gas Industry Reports revealed that Nigeria earned $23.04bn in 2021 and $23.05bn in 2022 from the sector. However, we also identified outstanding remittances of N1.5tn owed to the federation by some companies and government agencies, funds that could significantly support energy infrastructure, education, and healthcare if recovered,” the agency stated.

The NEITI Executive Secretary said the findings underscore the economic cost of weak accountability in the oil sector, warning that poor governance practices continue to drain national revenue.

Orji explained that Nigeria lost 13.5 million barrels of oil in 2022 alone, amounting to $3.3bn of theft and sabotage.

He said this revenue could have financed the nation’s health budget for a year.

“Our findings also exposed the devastating cost of poor accountability. In 2022 alone, Nigeria lost 13.5 million barrels of crude oil valued at $3.3bn to theft and sabotage. That is revenue that could have financed a full year of the federal health budget or provided energy access to millions of households,” he stated.

He stressed that transparency and accountability are not optional but existential for Nigeria’s energy future, adding that the country’s progress depends on how transparently its natural resources are managed.

“Nigeria’s energy future will not be defined by the size of our reserves or production capacity, but by how transparently and prudently we manage our natural resource wealth, the revenues, data, contracts, and decisions that shape our national destiny,” he said.

He described transparency as an economic imperative, saying, “Data builds trust, and trust drives investment. Transparency is not a bureaucratic exercise; it is an economic imperative. It attracts capital, technology, and partnerships.”

The NEITI boss noted that the agency had evolved from an auditing body to a governance reform institution, highlighting key measures undertaken to entrench accountability in the sector.

He listed these to include the institutionalisation of regular audits of the oil, gas, and solid minerals sectors; the development of Nigeria’s Beneficial Ownership Register covering over 4,800 extractive assets; the launch of the NEITI Data Centre; and the introduction of the Just Energy Transition and Climate Accountability Framework.

“These are not ceremonial milestones. They are practical governance instruments designed to make transparency the DNA of Nigeria’s extractive sector,” he said.

Orji also urged journalists under the Association of Energy Correspondents of Nigeria to use NEITI’s data to hold both government and industry accountable.

He reaffirmed NEITI’s commitment to ensuring that every kobo earned from Nigeria’s natural resources contributes to national development.

“At NEITI, we are committed to ensuring that every barrel produced, every cubic foot of gas commercialised, and every kobo earned contributes to national development in full public view. Nigeria’s sustainable energy future rests on three interlocking values — transparency, accountability, and sustainability,” he stressed.

Meanwhile, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, said the reforms implemented by the commission have slashed crude oil theft by 90 per cent and restored investor confidence in the nation’s oil and gas industry.

Komolafe said the decisive policy measures and transparency introduced under the Petroleum Industry Act have repositioned Nigeria’s upstream sector for growth, competitiveness, and sustainability.

“When the NUPRC was inaugurated four years ago, we inherited a complex landscape defined by declining investments, waning exploration activity and operational uncertainties. However, with the passage of the PIA 2021, Nigeria entered a new era of regulatory clarity, transparency and predictability,” Komolafe said.

He noted that the commission’s reforms have delivered measurable progress, particularly in curbing oil theft, improving data transparency and attracting new investments.

“Through collaboration with security agencies, private contractors and community stakeholders, the Commission has implemented the Upstream Measurement Regulation and the Advance Cargo Declaration Regulation. The result is a remarkable 90 per cent reduction in crude oil theft, from over 102,000 barrels per day in 2021 to 9,600 barrels per day as of September 2025,” he stated.

Komolafe also disclosed that the NUPRC had enhanced data transparency by acquiring, reprocessing and digitising seismic data across frontier and producing basins, adding that over 17,000 line-kilometres of 2D and 28,000 square kilometres of 3D seismic data had been reprocessed to global standards.

He said the commission had introduced a fully digitalised licensing process to eliminate human interference and strengthen accountability.

According to him, during the 2024 mini-bid round, signature bonuses were reviewed downward from about $100m to $10m to encourage field development and early production.