Nigeria loses $16 billion in ten years-Nigeria Extractive Industries Transparency Initiative

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The Nigeria Extractive Industries Transparency Initiative, NEITI, says Nigeria lost at least $16 billion in ten years due to non-review of the 1993 Production Sharing Contracts, PSCs, with oil companies.

This was one of the highlights of the latest report NEITI released in Abuja, tagged “The Steep Cost of Inaction”.

The study done in conjunction with Open Oil, a Berlin-based extractive sector transparency group, found that the losses could be up to $28 billion if, after the review, the federation was allowed to share profit from two additional licenses.

NEITI therefore called for an urgent review of the PSCs, to stem the huge revenue losses to the federation.

It added that the review was particularly important for Nigeria because oil production from PSCs had surpassed production from Joint Ventures with PSCs now contributing the largest share to federation revenue.