Nigeria Achieves 79% Reduction in Crude Oil Theft, Faces Revenue and Production Decline – NEITI

• NEITI reported a 79% reduction in crude oil theft from 2022 to 2023, but oil and gas revenue declined by 15%
• The agency emphasized the need for strategic adaptation to global energy transitions while addressing immediate issues like oil theft

The Nigeria Extractive Industries Transparency Initiative (NEITI) has reported significant progress in combating crude oil theft, with a 79% reduction recorded between 2022 and 2023.

However, the agency also noted a 15% decline in oil and gas revenue and an 8% decrease in production volumes during the same period.

1. Reduction in Oil Theft:
   NEITI’s 2023 report highlights improved resource management thanks to significantly reduced theft-related crude oil losses.

• Dr. Orji Ogbonnaya Orji, NEITI Executive Secretary, praised the efforts of the National Security Adviser, the Nigerian Armed Forces, and other security agencies for their role in achieving this milestone.
• He called for sustained efforts to eliminate crude oil theft.

1. Decline in Revenue and Production:

• Oil and gas revenues fell by 15% between 2022 and 2023.
• Production volumes decreased by 8%, and the reserve-replacement ratio steadily declined.

1. Energy Transition Challenges:

• NEITI launched a study on the impact of the global energy transition on Nigeria’s economy, stressing the urgency of preparing for the shift to renewable energy.
• Senator George Akume, represented by Ambassador Mathew Adoli, noted that the transition presents challenges and opportunities for Nigeria, an oil-dependent economy.

Dr. Orji emphasized the importance of positioning Nigeria to adapt to the global push for cleaner energy sources. He stated:

The transition from fossil fuels to renewable energy sources is no longer an abstract concept. It is a reality shaping policies, markets, and investments worldwide. For Nigeria, this transition will determine not just the future of our energy sector but also the sustainability of our economy.

NEITI’s findings underscore the necessity for a balanced approach to addressing immediate issues, such as oil theft, while preparing for the long-term impact of global energy trends.