EFCC to probe oil firms over failure to comply with NEITI audit

The Economic and Financial Crimes Commission (EFCC) has said it will probe oil and gas firms over their failure to comply with the Nigeria Extractive Industries Transparency Initiative (NEITI) audit.

EFCC Chairman Ola Olukoyede issued this warning to oil and gas firms during his address as a special guest while presenting the NEITI Report on the Oil and Gas sector in Abuja.

Olukoyede warned all industry players, oil and gas companies and relevant government agencies that their failure to comply with the annual NEITI Industry Audit process should be seen as a costly mistake.

The chairman of the anti-graft agency added that that where the work of NEITI stops will mark the commencement of EFCC investigations.

“The current NEITI Report on the Oil and Gas sector is now with the Commission for further necessary action,” Olukoyede said.

“The EFCC is working closely with NEITI for further necessary action against the offenders.

“We signed the remittance of a recovery of N1 billion to the beneficiary agency of government following their assessment of a NEITI Report findings.”

The Chairman of the House of Representatives Committee on Petroleum Downstream, Hon Ikenga Ugochinyere, also spoke at the event.

Ugochinyere disclosed 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 passed through the first reading.

He advised all stakeholders in the NEITI process to partner with his Committee to amend the NEITI law.

Meanwhile, a NEITI report showed that in the past two years, Nigeria has seen an impressive production of no fewer than five trillion standard cubic feet of natural gas.

The report also highlighting the nation’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 was contained in a statement signed by the Assistant Director, Communications & Stakeholders’ Management, Chris Ochonu, on Sunday in Abuja.

NEITI added: “In the same direction, the sector witnessed a steady decline on the sector’s contributions to country gross domestic product (GDP).

“A trend of the contribution of 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 N202.36tn ($478.06bn) as at last year 2023.

“The Report attributed the decline to dwindling oil production arising from insecurity, oil theft and sabotage.”