Nigeria’s state coffers are owed nearly US$10 billion due to illicit fund flows (IFFs) in the oil and gas industry according to the Nigeria Extractive Industries Transparency Initiative (NEITI).

It adds that the vast majority of IFFs are channelled through the oil and gas industry.

Massive outflows

NEITI says it has identified US$9.8 billion owed to the federal government, a figure that does not represent all IFFs in Nigeria, which the initiative reckons amount to US$18 billion annually.

The transparency watchdog claims to have recovered US$ 2.4 billion through its efforts.

Dominant sector

The oil and gas sector continues to play a significant role in the Nigerian economy, accounting for 65 per cent of total government revenue.

With a maximum crude oil production capacity of 2.5 million barrels per day, Nigeria is Africa’s largest producer of oil, and the 13th largest oil producing country in the world.

The country has faced significant challenges in managing the sector and has yet to successfully tackle the unaccountable use of revenues and corruption.