The Nigeria Extractive Industries Transparency Initiative (NEITI) has released a new study that claims that unpaid gas royalties and fines for gas flaring have cost Nigeria $1.4 billion.
At a roundtable discussion on tracking energy transition costs and budget transparency on Thursday in Abuja, hosted by the non-governmental BudgIT Foundation, Ogbonnaya Orji, the executive secretary of NEITI, disclosed this.
Orji claims that the Transparency Initiative’s most recent report on the mining and oil and gas industries for 2021 included information on this.
Orji said that in order for the nation’s budget to effectively address the energy transition and climate change, intentional investments in the solid minerals industry, gas infrastructure and commercialization, human capital development, and usage of low-carbon hydrogen should be prioritized.
“To calculate these opportunities in terms of human and material resources, commitment is required,” he stated.
The NEITI helmsman also reaffirmed the significance of gas commercialization as a crucial means for Nigeria to reduce the risks and negative economic effects of climate change and the energy transition.
“The oil and gas industry’s most recent report from NEETI revealed an overall amount of $559.8 million in unremitted revenue from gas royalties and an additional $828.8 million in unremitted revenue from unpaid gas flare fines.”
He continued, “A close examination of these numbers revealed that more gas was flared during the period than was used, posing serious dangers to the global zero emissions agenda.”
In order to be consistent with Tinubu’s pledges to combat climate change and promote green economic solutions, he demanded that the nation’s gas commercialization policy be reviewed.
Orji declared that NEITI has started a study on the effects of the energy transition on Nigeria’s economy, using funding from foreign development partners such as the Ford Foundation.
He claimed that the study would pinpoint precise effects on income, employment, means of subsistence, the environment, gender, and emission control.
The National Climate Change Policy and Climate Change Act were started by the FG through the Ministry of Environment, according to Ishaq Salako, Minister of State for Environment, who also spoke at the occasion.
He emphasized the significance of transparency in climate budgeting and stated that this would give a thorough policy framework and roadmap for the nation’s national climate strategy.
In order to lead the way in Africa for the issuing of sovereign green bonds to fund initiatives that lower greenhouse gas emissions and advance sustainable development, the minister announced the creation of the National Green Bond Program.
“Nigeria has raised N25.69 billion through the issuance of two sovereign green bonds thus far, to fund 39 projects spanning the domains of afforestation, renewable energy, transportation, agriculture, and water resources.”
According to Salako, “the third sovereign green bond issuing process is ongoing and has reached advance stage.”
