Nigeria loses about $I billion revenue yearly to falsification of gas flare data by Multinational Oil Companies (MOCs) operating in the country.
This was revealed this weekend by Chairman of the Economic and Financial Crimes Commission (EFCC), Rasheed Bawa at a “One-day workshop on Illicit Financial Flow, Gas Flaring and COP 26” organized by Human and Environmental Development Agenda (HEDA) Resource Centre, re:Common and Cornerhouse in collaboration with Fossil Fuel Non-Proliferation Treaty Initiative , with support by MacArthur Foundation.
Bawa, who was represented at the event by the Lagos Zonal Coordinator of the EFCC, Ahmed Ghali, accused big oil companies of always falsifying gas flare data in order to cut down on payment of penalties.
He said, “Multinational Oil Companies (MOCs) operating in Nigeria has over the years been falsifying gas flare data to cut down on payment of penalties. The former Petroleum Minister, Dr lbe Kachukwu put the loss from this illicit flow to between $500,000,000 and $1,000,000,000 in revenues that would have accrued from the penalties.
“This is as a result of not having an independent tracking mechanism to monitor gas flare data and reliance on the figures submitted by International Oil Companies (lOC).”
According to the EFCC boss the Petroleum Profit Tax, Nigeria Liquefied Natural Gas (Fiscal Incentive Guarantees and Assurance) Act, Associated Gas Re-injection Act, Private sector led initiatives like the West African Gas Pipeline (WAGP) project and the Domestic Gas Supply Obligations (DGSOs) are some of the laudable initiatives towards a clean energy transition in Nigeria.
Though the initiative was a success, he lamented that Nigeria has not made as much progress as was envisaged due to inability to effectively put an end to gas flaring and prevent illicit financial flows resulting from fraudulent declaration by the operators in the oil and Gas industry.
Speaking earlier, Deputy Vice Chancellor, Development Services, University of Lagos (UNILAG), Akoka, Prof Ayodele Atsenuwa, who was chairman of the event, said gas flaring has refused to stop in the country because it is part of the grand scheme of corruption and illegality in high places and the failure to bring those who gained from it to justice.