Nigeria Lost Over ?1.5 Trillion to Poor Transparency in Extractive Sector — NEITI

The Nigerian Extractive Industries Transparency Initiative (NEITI) has revealed that Nigeria lost over ?1.5 trillion in potential revenue due to poor transparency and unremitted funds in the extractive sector.

This was disclosed by the Executive Secretary of NEITI, Dr. Ogbonnaya Orji, at the 2025 Association of Energy Correspondents of Nigeria (NAEC) Conference held in Lagos on Thursday.

Speaking on the theme, “Nigeria’s Energy Future: Exploring Opportunities and Addressing Risks for Sustainable Growth,” Orji said the lost revenue could have financed the entire federal health budget for a year or provided electricity access to millions of households.

“These losses are not just economic—they represent broken trust, institutional weaknesses, and missed opportunities for national progress. This is precisely why transparency and accountability are not optional. They are existential,” he said.

According to him, Nigeria’s energy future will depend less on the size of its oil reserves and more on how transparently it manages its natural resource wealth.

He added that transparency has become an economic imperative, noting that “data builds trust, and trust drives investment.”

“Transparency is not a bureaucratic exercise—it attracts capital, technology, and partnerships. Our latest NEITI industry reports make this truth evident,” Orji stated.

The NEITI boss disclosed that Nigeria earned $23.04 billion in 2021 and $23.05 billion in 2022 from the oil and gas sector. However, he said ?1.5 trillion in outstanding remittances owed to the Federation by some companies and government agencies remain unaccounted for.

“These funds could significantly support energy infrastructure, education, and healthcare if recovered,” he added.

Highlighting NEITI’s reforms, Orji said the agency has evolved from an auditing body to a governance reform institution, noting its strides in:

• Conducting regular audits of the oil, gas, and solid minerals sectors;
• Developing Nigeria’s Beneficial Ownership Register, revealing the true owners of over 4,800 extractive assets;
• Launching the NEITI Data Centre, an open-data platform providing real-time access to industry information;
• Strengthening partnerships with regulatory bodies such as NUPRC, NMDPRA, and NCDMB; and
• Introducing the Just Energy Transition and Climate Accountability Framework to ensure a fair and transparent shift to cleaner energy.

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

Orji urged the government to keep pace with innovation as Nigeria transitions to gas and renewables.

“Our energy future must rest on verifiable data, open contracts, measurable emissions, and accountable institutions. NEITI envisions a sector where every dollar is traceable, every contract is public, and every Nigerian can see how natural resources translate into prosperity,” he concluded.