Nigeria Lost $3.3bn to Oil Theft, Pipeline Vandalism in One Year — NEITI

Nigeria lost about 13.5 million barrels of crude oil valued at $3.3 billion to theft and pipeline sabotage between 2023 and 2024, according to the Nigeria Extractive Industries Transparency Initiative (NEITI).

Executive Secretary of NEITI, Dr. Ogbonnaya Orji, disclosed this on Thursday at the 2025 Association of Energy Correspondents of Nigeria (NAEC) conference in Lagos, describing the losses as a major setback to the country’s economic stability and energy security.

He said the stolen crude, if properly harnessed, could have funded Nigeria’s entire health budget for one fiscal year or provided electricity access to millions of homes.

“These losses are not just numbers on paper; they reflect institutional weaknesses, broken trust, and missed opportunities for national progress,” Orji said. “That is why transparency and accountability are not optional, they are essential for survival.”

Delivering his address on the theme, “Nigeria’s Energy Future: Exploring Opportunities and Addressing Risks for Sustainable Growth,” Orji argued that the future of Nigeria’s energy sector depends not on its reserves but on the transparency and prudence with which the nation manages its resource wealth.

According to him, secrecy and mismanagement have long hindered Nigeria’s progress, stressing that the global shift towards cleaner and more sustainable energy sources requires openness and innovation across the entire value chain.

“At NEITI, we believe data builds trust, and trust drives investment,” he said. “Transparency is not a bureaucratic exercise, it is an economic imperative that attracts capital, technology, and partnerships.”

Citing NEITI’s 2021–2022 Oil and Gas Industry Reports, Orji revealed that Nigeria earned $23.04 billion in 2021 and $23.05 billion in 2022 from oil and gas operations. However, the report also identified ₦1.5 trillion in unremitted funds owed to the Federation by some oil companies and government agencies.

“These are revenues that could significantly transform our energy infrastructure, education, and healthcare systems if recovered,” he said.

Highlighting the reforms driven by NEITI, Orji noted that the agency had evolved from being a routine auditor to a key governance reform institution.

Over the past decade, NEITI has established regular audits across oil, gas, and solid minerals; developed Nigeria’s Beneficial Ownership Register to reveal the real owners of over 4,800 extractive assets; and launched the NEITI Data Centre—a national open-data platform offering real-time access to industry information.

He added that NEITI has deepened collaboration with regulatory agencies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and Nigerian Content Development and Monitoring Board (NCDMB) to promote transparency in licensing, metering, and host community trust management.

Orji further announced that the organisation has introduced a Just Energy Transition and Climate Accountability Framework to ensure that Nigeria’s move toward cleaner energy remains transparent, inclusive, and fair.

“These are not ceremonial milestones,” he emphasised. “They are deliberate governance tools designed to embed transparency and accountability into every layer of Nigeria’s extractive sector.”

As Nigeria positions gas as its transition fuel and explores renewables as its future, Orji urged the federal government to anchor its policies on reliable data, measurable emissions, and open contracting.

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

He reaffirmed NEITI’s commitment to ensuring full disclosure and accountability across the extractive industries, saying: “Every barrel produced, every cubic foot of gas commercialised, and every kobo earned must support national development—in full public view.”