The Nigerian extractive sector is plagued with a lack of transparency resulting in the vulnerability of the sector to bad dealings and illicit financial transactions. A consequence of this is a huge loss of revenues for the Nigerian government. This lack of transparency, compounded with weak governance, regulatory frameworks, and rule of law, allows Oil and Gas companies, as well as other major players in the sector, operate in an unaccountable manner, abuse human rights, partake in illicit financial flows and exploit the fragility phenomenon in many oil-producing communities.
The situation is further worsened by “shadow” multinational oil companies which operate in Nigeria but are not registered by law and who exploit Nigeria’s fragile and corrupt context, including its weak regulatory framework to perpetuate their illegality, evade tax obligations and avoid accountability, which constitutes oil theft.
NEITI reports that about $4.2 billion is lost annually to crude and product losses resulting from stealing, process lapses and pipeline vandalism. This means that from 2013 to date, approximately $30 billion has been lost to oil theft.
The OXFAM Conflict and Fragility has launched a competition tagged the 30 Billion Challenge. The competition requires that participants write a short essay or create videos explaining how this fund would have been better utilised in their communities.
Winner stands the chance of winning N200,000 worth of prizes.
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Kevwe Precious Oghide Hamzat Lawal receiving the Follow The Money UN SDGs Award at the Global Festival of Action in Bonn,...