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In the past two years, Nigeria has seen an impressive production of no fewer than five trillion standard cubic feet of natural gas, highlighting the country’s significant role in the global energy market and its potential for further economic development in the energy sector.
A breakdown shows that 2.521tn standard cubic feet were produced in 2022 representing a decline when compared with 2.744tn standard cubic feet produced in 2021.
While in 2023, the gas sector recorded a total production of 2.491tn standard cubic feet representing only 1 per cent drop in gas production when compared with the total production recorded in 2022.
This information and data were contained in the latest oil and gas industry independent report released to the public in Abuja by the Nigeria Extractive Industries Transparency Initiative.
A statement signed by the Assistant Director, Communications & Stakeholders’ Management, Chris Ochonu, disclosed this on Sunday in Abuja.
From the reports, NEITI further disclosed that a five year trend analysis between 2019 and 2023 showed that the highest production of gas in Nigeria was recorded in 2019 with volumes of 3.048 trillion SCF and the lowest of 2.491 trillion standard cubic feet was produced in 2023.
This represented an 82.73 per cent increase in the country’s production capacity last year.
On gas utilisation, the statement said a total of 137.36bn standard cubic feet of gas was used as fuel in 2022 from data provided by only 32 gas companies.
On the contribution of the oil and gas industry to employment opportunities. During the period under review, the NEITI findings showed that 6,728 persons were employed in the sector, out of which (83 per cent) were men while only 17 per cent were women. In the same direction, the sector witnessed a steady decline in the sector’s contributions to the country’s gross domestic product.
A trend of the contribution of the oil and gas sector to GDP in Nigeria from 7.32 per cent to 4.34 per cent in 2022 and 5.75 per cent to Nigeria’s total GDP of N202.365tn (US$478.06bn) as of last year 2023.
The agency attributed the decline to dwindling oil production arising from insecurity, oil theft and sabotage.
Speaking as a special guest while presenting the Report in Abuja, the Chairman of the Economic and Financial Crimes Commission, Mr Ola Olukoyede warned all industry players, oil and gas companies and relevant government agencies that resistance to comply with the annual NEITI Industry Audit process is considered a costly mistake, stressing that where the work of NEITI stops marks the beginning of EFCC investigations.
He said, “The current NEITI Report on the Oil and Gas sector is now with the Commission for further necessary action.”
On his part, the Chairman of the House of Representatives Committee on Petroleum Downstream, Hon Ikenga Ugochinyere, announced that a private member bill to amend the NEITI Act 2007 to align with the current realities sponsored by him on the floor of the House has already scaled through the first reading.
He advised all stakeholders in the NEITI process to partner with his Committee to amend the NEITI law.
