The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the total unremitted revenue from gas royalty payments and unpaid gas flare penalties has reached approximately $1.4 billion.
This information comes from NEITI’s latest audit report on the oil and gas sector for 2021, disclosed by Executive Secretary, Mr. Ogbonnaya Orji, at a roundtable event in Abuja organised by BudgIT Foundation.
In a statement, Mr. Orji emphasised the importance of President Bola Tinubu’s commitment to enhancing Nigeria’s climate change initiatives, energy transition, and green economic solutions. He highlighted key areas for investment, including the solid minerals sector, gas infrastructure and commercialization, technology, human capital development, and food security.
Mr. Orji stressed that these investments are crucial for addressing climate change and energy transition costs.
The NEITI report detailed that $559.8 million in gas royalty payments and $828.8 million in gas flare penalties remain unremitted.
Mr. Orji noted that the significant amount of gas flared during this period poses a threat to global zero-emissions efforts. He urged a review of Nigeria’s gas commercialization policy to better align with Tinubu’s climate change commitments.
Additionally, he announced that NEITI, with support from international partners like the Ford Foundation, has initiated a research study on the impacts of energy transition on Nigeria’s economy. This study aims to assess effects on revenues, jobs, livelihoods, the environment, food security, gender, and emissions control.
Honourable Minister of State for Environment, Mr. Ishaq Salako, also spoke at the event, highlighting the federal government’s efforts through the National Climate Change Policy and Climate Change Act to create a comprehensive framework for national climate action.
He announced the launch of a National Green Bond Programme, which has so far issued two sovereign green bonds raising N25.69 billion for projects in afforestation, renewable energy, transportation, agriculture, and water resources. The issuance process for a third sovereign green bond is currently in advanced stages.
