ABUJA – The Energy Reforms Advocates (ERA) has raised alarm over what it describes as Nigeria’s loss of over $150 million annually due to the non-payment of taxes by oil firms on crude oil profits. The group attributes this financial hemorrhage to an “unholy alliance” involving the Nigerian National Petroleum Company Limited (NNPCL), local oil firms, and international oil giants.
ERA has decried the situation, warning that the unchecked exploitation not only sabotages Nigeria’s economic interests but also fuels concerns about deep-rooted corruption and potential money laundering activities.
“Oil is the backbone of Nigeria’s economy, and this flagrant exploitation has far-reaching consequences,” a spokesperson for ERA said. “Every sector of the country is impacted, from infrastructure to healthcare, as vital funds are siphoned away, worsening the financial hardships we already face.”
According to ERA, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has failed in its oversight duties, allowing fuel quality standards to deteriorate. The group accused the agency of turning a blind eye to its statutory obligations, leaving room for unscrupulous commodity traders and Nigerian marketers to import substandard fuels without repercussions.
“NMDPRA’s inaction has created a regulatory vacuum that traders and marketers are exploiting with impunity,” the ERA statement reads. “This has led to the widespread importation of subpar fuel, which not only harms consumers but also perpetuates the cycle of exploitation.”
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ERA further expressed concerns about the broader implications of these practices on the nation’s future. “As Africa’s largest oil producer, Nigeria’s economic survival depends on crude exports. But these illegal activities deprive us of critical revenues that could otherwise be channeled into education, healthcare, and essential services,” the group noted. “The actions of these unpatriotic elements are crippling national development.”
Calling for urgent action, ERA urged the Economic and Financial Crimes Commission (EFCC) to investigate these illicit activities and prosecute those involved. “It’s time for the EFCC to step in and hold all individuals and organizations accountable,” the group stated. “The rot in the system must be uprooted.”
The advocacy group also called for greater transparency in NNPCL’s crude oil allocation process and tighter oversight of oil export channels to prevent further exploitation. They emphasized that a comprehensive review of all crude oil export contracts is needed, citing companies like Matrix Energy and Gulf Transport & Trading (GTT) as those to be closely scrutinized.
“This constitutes a systematic plundering of Nigeria’s resources,” the ERA spokesperson asserted. “We cannot continue to sit idle while a privileged few in collusion with corrupt officials bleed our country dry.”
ERA concluded by urging Nigerians to remain vigilant and demand the transformative reforms urgently needed to salvage the oil and gas sector. “We need decisive government intervention, and we need it now,” the group said.
