In what may appear as a surprise to many Nigerians, the Nigeria Extractive Industries Transparency Initiative (NEITI) says they do not have the capacity to go deep into the shores to ascertain how much crude oil Nigeria is producing.
Dr Orji Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI) made this known in Abuja yesterday during a courtesy visit to the Director-General of the Federal Radio Corporation of Nigeria (FRCN), Dr Mansur Liman.
He disclosed that all the companies that go deep offshore and involved in offshore exploration are not indigenous Nigerian companies; therefore, they cannot really protect the interest of the country as much as Nigerians can. All efforts to reform Nigeria’s Petroleum Industry could not yield needed results because those who benefit from the out-dated law governing the sector have continued to resist the passage of the Petroleum Industry Bill (PIB).
He stressed that NEITI is addressing this challenge because “if you don’t know how much you are producing how would you know how much you are expected to earn”
According to him, the only law that currently governs the oil and gas industry in Nigeria is the Petroleum Act of 1958 and using this Act in computations of taxes and royalties, based on such very old rate, Nigeria loses a lot of revenue. Also when oil prices go up, the country is unable to derive maximum benefit because it failed to update its laws in the sector. Meanwhile International Oil Companies (IOC) do not have interest in updating the laws because it favours them.