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Nigeria’s Oil and Gas Sector Yields $831.14 Billion Over 24 Years: NEITI Report

The Nigerian Extractive Industries Transparency Initiative (NEITI) has disclosed that Nigeria’s oil and gas sector generated over $831.14 billion in revenue between 1999 and 2023. This substantial income underscores the sector’s pivotal role in the nation’s economy.

Despite this significant revenue, NEITI has identified areas of concern. As of June 2024, outstanding revenues due to the federal government from the oil and gas industry amounted to $6.071 billion and ₦66.4 billion, respectively. These liabilities primarily consist of unpaid royalties and gas flare penalties owed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), as well as outstanding taxes due to the Federal Inland Revenue Service (FIRS).

In light of these challenges, NEITI emphasizes the need for substantial investment in gas infrastructure. The organization recommends an annual investment of $20 billion over the next decade to maximize Nigeria’s gas production potential. Such investment is deemed crucial for Nigeria to fully harness its gas resources and maintain its position as a leading gas producer globally.

This report highlights the dual nature of Nigeria’s oil and gas sector: while it remains a cornerstone of the nation’s revenue, there are pressing issues related to revenue management and infrastructure investment that need to be addressed to ensure sustainable growth and development.

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