Orji made this statement on Monday during the 2024 NEITI board retreat/meeting opening ceremony in Lagos.
He claims that between 2009 and 2018, oil theft caused the refineries to lose 4.2 billion liters of petroleum products. A daily estimate of 140,000 barrels was given for this.
The head of NEITI, perplexed by the rising incidence of oil theft, stated, "Our 2009 to 2020 audits' figures place Nigeria's losses from crude oil theft over a 12-year period at 619.7 million barrels valued at N16.25 trillion, or $46.16 billion. Comparably, the nation lost 4.2 billion liters of petroleum products from refineries valued at $1.84 billion between 2009 and 2018.
He continued by saying that the previous administration formed a special panel on oil theft and losses to investigate the problem because of these losses and the ensuing detrimental consequences on the economy.
Orji made hints that NEITI had completed a study and offered suggestions for how to combat oil theft in Nigeria, pleading with the current government to examine the findings and put the suggestions into practice.
He emphasized that the purpose of the five-day retreat was to exchange ideas on how to address the existing issues of pipelines, illegal mining, oil theft, and other governance problems that have led to the loss of income and investment prospects.
Regarding the energy transition, the executive secretary voiced concerns that, as the world's demand for oil drops, the switch from fossil fuels to renewable energy may pose a threat to the country's economy.
Orji pointed out that nations that primarily rely on hydrocarbon-based natural resource earnings for survival face serious concerns as the world shifts away from fossil fuels and toward renewable energy sources.
Nigeria, one of our countries, depends largely on oil earnings to survive. This board's jurisdiction includes providing timely policy decisions and solutions to our government and citizens in order to address this inevitable unfolding development in the extractive industry.
"Unless we take advantage of the enormous opportunities, the fear of the known risks far outweighs the potential unknown opportunities in most of the affected countries."
Orji pointed out that nations that primarily rely on hydrocarbon-based natural resource earnings for survival face serious concerns as the world shifts away from fossil fuels and toward renewable energy sources.
Nigeria, one of our countries, depends largely on oil earnings to survive. This board's jurisdiction includes providing timely policy decisions and solutions to our government and citizens in order to address this inevitable unfolding development in the extractive industry.
"Unless we take advantage of the enormous opportunities, the fear of the known risks far outweighs the potential unknown opportunities in most of the affected countries."
using the multi-stakeholder framework and global network of the Extractive Industries Transparency Initiative to look for answers.
"A permanent decline in the global demand for crude oil presents serious threats to Nigeria's economy at current levels of dependency." Every day, there is less and less demand for our oil," he said.
He declared that the considerably longer-term and permanent fall in demand would have a profound effect on the Nigerian economy, considering the economic difficulties the country has faced due to temporary disruptions in the production of gas and crude oil.
Orji went on, "The switch from carbon-based fuel would have various effects on the economy in addition to a major long-term impact on Nigeria's exports and earnings. One immediate effect of the change would be the disappearance of fossil fuels as a power source.
"A permanent decline in the global demand for crude oil presents serious threats to Nigeria's economy at current levels of dependency." Every day, there is less and less demand for our oil," he said.
He declared that the considerably longer-term and permanent fall in demand would have a profound effect on the Nigerian economy, considering the economic difficulties the country has faced due to temporary disruptions in the production of gas and crude oil.
Orji went on, "The switch from carbon-based fuel would have various effects on the economy in addition to a major long-term impact on Nigeria's exports and earnings. One immediate effect of the change would be the disappearance of fossil fuels as a power source.
"In 2021, 46% of Nigeria's energy consumption and 78% of its electricity production came from crude oil and gas. Therefore, the nation would need to make a substantial financial investment in order to make the switch from producing energy from fossil fuels to renewable energy. He clarified that in addition to the huge sum of money needed to address Nigeria's current electricity supply gap, there is also this financial (and technological) burden.
Sanwo-Olu responds
The Lagos State Governor, Babajide Sanwo-Olu, on his part, stated that in order for Nigeria to properly utilize its wealth of natural resources, it is imperative that the laws now in place that grant authority over oil and other mineral resources be reviewed.
both the utilization of the nation's mineral resources and the Federal Government.
"The need for review of these laws has become very urgent if the Federal Government's policy on Ease of Doing Business is to succeed, especially at the sub-national levels," declared Sanwo-Olu, who was accompanied by Biodun Ogunleye, the Lagos State Commissioner for Energy. In order to diversify our country's economy and encourage investments in the extractive industries, the review is also crucial.
In order to achieve this goal, the federal government and its agencies must collaborate more with the business community and local and regional governments to exploit our natural resources. Solid minerals development, host community programs, energy efficiency, environmental sustainability, mobilization of domestic resources, and poverty reduction measures are among the areas of participation are at the center of how resource-rich nations like Nigeria are experiencing the effects of the global extractive industries transparency movement.
"The need for review of these laws has become very urgent if the Federal Government's policy on Ease of Doing Business is to succeed, especially at the sub-national levels," declared Sanwo-Olu, who was accompanied by Biodun Ogunleye, the Lagos State Commissioner for Energy. In order to diversify our country's economy and encourage investments in the extractive industries, the review is also crucial.
In order to achieve this goal, the federal government and its agencies must collaborate more with the business community and local and regional governments to exploit our natural resources. Solid minerals development, host community programs, energy efficiency, environmental sustainability, mobilization of domestic resources, and poverty reduction measures are among the areas of participation are at the center of how resource-rich nations like Nigeria are experiencing the effects of the global extractive industries transparency movement.
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