…as frowns at less than 1% contribution of solid minerals to GDP
By Our Correspondent
The Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed that Nigeria requires injection of $200billion into gas infrastructure for maximization of the natural resources as the number one highest gas producer in Africa and ninth in the World.
This is as the Senate through its Committee on Public Accounts, rejected as unacceptable, the less than 1% contribution of proceeds from solid minerals to GDP on yearly basis.
Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, in his 2021-2023 reports on Oil, Gas and Solid Minerals presentation to the Senate Public Accounts Committee (SPAC) stated this on Monday said the required infrastructure for maximization of gas resources in the country are not there.
“Based on NEITI’s findings , Nigeria needs to invest at least $20billion per year into gas infrastructure for a period of ten years.
“The only thing that Qatar Energy does is gas processing through required infrastructure.
“So, in Nigeria, what we need, is to invest in gas infrastructure to evacuate gas. And our study shows that we need an initial investment of $20 billion annually for 10 years to be able to generate the kind of gas infrastructure required to provide gas for the whole of Africa and beyond.
“This, of course, will require construction of gas pipelines along and across, West African sub-region, and beyond which is a huge expenditure”, he said.
When asked on what NEITI is doing on alleged $8.5billion unremitted into the consolidated revenue fund by Nigerian National Petroleum Company Limited (NNPCL), Federal Inland Revenue Service (FIRS) and Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in 2023, the NEITI boss said the Economic and Financial Crime Commission (EFCC) is already probing the agencies involved.
He however added that the Solid Minerals sector is not giving the country desired revenue as yearly proceeds from the sector is less than 1% to GDP .
Irked by the submission, the Chairman and members of the committee said NEITI’s report on solid minerals , is not reflective of what is going on in the solid mineral sector.
They wondered why only States like Ogun, Osun, Kogi, Edo, Ebonyi, Rivers, Cross Rivers and FCT, were mentioned in the report leaving out Nasarawa, Zamfara, Kebbi, Plateau, Bauchi, etc.
Specifically the Chairman of the Committee, Senator Wadada described the less than one 1% contribution of solid minerals to GDP as quite ridiculous and unacceptable.
“This definitely must not continue, there must be complete overhaul of the sector”, he said.
