During the Wednesday plenary session, the House of Representatives received the 2021 Oil and Gas Report from the Nigerian Extractive Industries Transparency Initiative (NEITI) as part of its commitment to aid President Bola Ahmed Tinubu’s renewed hope for economic recovery and growth. This presentation, in accordance with section 4(3) of the NEITI Act, was made by Hon. Ikenga Ugochinyere, the Chairman of the Committee on Petroleum Resources Downstream, and co-sponsored by Hon. Alhassan Ado-Doguwa, Chairman of the Committee on Petroleum Resources Upstream.
Upon receiving the report, the House referred it to the Committees on Petroleum Resources (Upstream and Downstream), each chaired by its respective Chairmen, for a thorough investigation into unremitted and misappropriated oil revenue, questionable contracts, and extra-budgetary expenditures by relevant Ministries, Departments, and Agencies of the federal government, amounting to N8 trillion.
Ugochinyere, during his presentation, highlighted the constitutional authority of the National Assembly to make laws for the peace, order, and good governance of the Federation, as per Section 4(2) of the Constitution of the Federal Republic of Nigeria, 1999 (As Amended). He also noted that Order 18 Rule 75(2)(k) of the Standing Orders of the House of Representatives grants jurisdiction over the Nigerian Extractive Industries Transparency Initiative (NEITI) to the House of Representatives Committee on Petroleum Resources (Upstream).
The House is cognizant of Section 4(3) of the NEITI Act, which mandates NEITI to present its report to the National Assembly for review and debate. The establishment of NEITI in 2004 is an integral part of the government’s comprehensive economic and institutional reforms aimed at ensuring transparency and accountability in the management of Nigeria’s abundant natural resources, which form the backbone of the country’s economy.
The lawmakers are also aware that NEITI, as per the Act’s provisions, is tasked with providing crucial information, recommendations, data, and facts needed by the government to foster constructive engagement, public discourse, discussions, dialogues, and advocacy for reforms in the oil sector.
Notably, since the enactment of the NEITI Act in 2004, no session of the House of Representatives has ever received and debated the NEITI Report, as required by Section 4(3) of the Act.
The House expressed dismay over the 2021 Oil and Gas Report, which revealed a significant increase in unremitted revenues to the Federation, totaling $9.85 billion, as well as a total crude oil and gas revenue of $23.046 billion. This represented a 13 percent rise from the $20.430 billion realized in 2020.
According to the NEITI Report, 54 companies accounted for a total metered crude oil production of 634.60 million barrels, with 68.47 million barrels lost to production adjustments, measurement errors, and theft/sabotage, resulting in a balance of 566.13 million barrels.
The House recognized the significance of the 2021 Oil and Gas Report, which was publicly unveiled and presented on September 18, 2023, containing far-reaching findings and recommendations critical to the development of the oil and gas sector. This presentation came at a time when the government needed to address revenue leakages, enhance income generation, and recover outstanding debts owed by oil companies in the sector.
The House expressed concern about the unremitted revenues, including $278.813 million from the First Exploration and Production JV, $7.61 million from OML 116 operated by the Nigerian Petroleum Development Company (NPDC), and $5.85 billion from the sale of domestic crude oil, including around $871.15 million in unremitted crude oil sales. The NEITI Report also highlighted the outstanding taxes payable to the FIRS and the Federation revenue payable to NUPRC.
Additionally, the House noted discrepancies in the volume of PMS imported in 2021 under the Direct Sale Direct Purchase (OSDP) arrangement, raising concerns about the lack of independent third-party confirmation of product importation volume and subsidy value.
To uphold the commitment of the House of Representatives to serve as a People’s Parliament, the leadership, led by Rt. Hon. Tajudeen Abass and Rt. Hon. Benjamin Kalu, deemed it essential to receive the 2021 NEITI Oil and Gas Report.