The Nigeria Extractive Industries Transparency Initiative (NEITI) has recovered $4.85 billion from unpaid liabilities owed by oil and gas companies in the country.
At a press conference in Abuja, Dr. Orji Orji, NEITI’s Executive Secretary, disclosed that the recovery is part of the total $8.26 billion identified in NEITI’s 2021 oil and gas audit report.
He stated that the development demonstrates the agency’s commitment to transparency and accountability in Nigeria’s extractive sector.
According to him, while significant progress has been made in recovering funds, unresolved financial liabilities remain a major concern.
“So far, over $4.85Billion was recovered from the disclosures of $8.26 Billion (made by NEITI in its 2021 oil and gas report. In the 2023 industry reports released in September 2024, NEITI disclosed liabilities of $6.175Billion and N66.378Billion, showing a significant decline from the liabilities of 2021 reports, yet worrisome because of the need for government to find resources to fund its 2025 budget,” Orji added.
He lamented that despite NEITI’s efforts to ensure financial accountability in the oil and gas sector, several companies have continued to default on payments.
He implored the Federal Inland Revenue Service (FIRS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), to take stronger enforcement actions against defaulters and adopt more stringent measures to prevent future revenue leakages.
“Analyses of how these liabilities when paid could support the federal government’s domestic revenue mobilization reveals that the liabilities when converted at N1,500 to one dollar, would amount to N9.33 Trillion.
“The sum is more than the federal government’s total budget for Health, education, agriculture and food security which totaled N8.73 Trillion. Further analyses show that the sum is also more than the total budget for national security at N6.11Trillion, health at N2.48 trillion and social welfare of N724billion all put together. The liabilities can also knock off about 72% of the federal government’s budget deficit of N13 trillion for 2025.
“NEITI is therefore calling on relevant agencies responsible for collecting these revenues to do the needful and support our governments at all levels to provide the much-needed infrastructure for our citizens,” he stated.
Orji disclosed plans to broaden the Initiaves’s industry-wide reports to include dedicated sections on divestments, forward sales of oil and gas assets, and environmental remediation.
He explained that the move is aimed at strengthening transparency and accountability in the extractive sector.
