The Executive Secretary of the Nigerian Extractives Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya, has disclosed that the country has outstanding gas royalty debts amounting to $559.8 million and unpaid gas flare penalties totalling $828.8 million.
He revealed this during the second German-Nigerian Symposium on Green Hydrogen in Abuja recently .
Despite Nigeria’s prominence as a global gas producer, Dr. Orji highlighted the risks associated with ongoing gas flaring activities, urging the country to harness these resources as it pursues its Decade of Gas agenda.
The unreconciled figures from the 2021 NEITI report underscore the challenge, pointing to significant amounts of flared gas during this period without corresponding payments, posing obstacles to global zero-emissions initiatives.
In July 2023, Hon. Tajudeen Abass, Speaker of Nigeria’s Federal House of Representatives, revealed an annual loss of $2.5 billion due to gas flaring, emphasising the missed revenue opportunities. He called for an investigation by the Ad-hoc gas flaring committee into fine payments and proceeds management.
Mr. Patrick Mgbebu, Chairman of the Gas Monitoring Committee at the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), further informed the House of a deprivation of over $277 million in gas flaring penalties to the Federation Account between 2020 and 2022.
