The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced the recovery of $4.85 billion from unpaid liabilities owed by oil and gas companies operating in the country.
NEITI’s Executive Secretary, Dr. Orji Orji, disclosed this during a press conference over the weekend, stating that the recovered amount is part of a total of $8.26 billion (N9.33 trillion at an exchange rate of N1,500 per dollar) identified in its 2021 oil and gas audit report.
Dr. Orji emphasized that while progress has been made, unresolved financial liabilities remain a critical concern. He noted that NEITI’s latest industry report for 2023, released in September 2024, uncovered additional liabilities amounting to $6.175 billion and N66.378 billion. Although this marks a decline from the 2021 figures, he described the situation as worrisome, especially given the government’s urgent need for revenue to fund its 2025 budget.
He lamented that despite NEITI’s efforts to promote financial accountability in the oil and gas sector, several companies continue to default on payments. He called on the Federal Inland Revenue Service (FIRS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take stricter enforcement actions and implement stronger measures to prevent further revenue losses.
Dr. Orji further highlighted the potential impact of recovering the outstanding funds, stating that the total unpaid liabilities by oil companies could cover approximately 72% of the federal government’s projected N13 trillion budget deficit for 2025.
“When converted at N1,500 to a dollar, the liabilities amount to N9.33 trillion. This figure surpasses the federal government’s combined budget for health, education, agriculture, and food security, which totals N8.73 trillion. It also exceeds the total allocations for national security (N6.11 trillion), health (N2.48 trillion), and social welfare (N724 billion) combined,” he explained.
NEITI, therefore, urged relevant government agencies to expedite the collection of these outstanding revenues to support infrastructure development and improve public services across the country.
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