The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced its collaboration with the Economic and Financial Crimes Commission (EFCC) to recover outstanding debts amounting to $6 billion and N66 billion owed to the federal government by oil and gas companies.
NEITI’s Executive Secretary Ogbonnaya Orji, disclosed this on Monday while defending the organization’s 2025 budget before the House of Representatives Committee on Petroleum Resources (Upstream).
According to NEITI’s September 2024 report, outstanding revenues due to the federal government from the oil and gas sector had risen to $6.071 billion and N66.4 billion by June 2024. The liabilities stem from unpaid royalties and gas flare penalties owed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), as of August 31, 2024. Additionally, the report highlighted overdue payments of petroleum profit taxes, company income taxes, withholding taxes, and value-added tax (VAT), amounting to $21.9 million and N492.8 million, respectively, owed to the Federal Inland Revenue Service (FIRS).
Addressing the committee, Orji reassured lawmakers that NEITI is actively working with the EFCC to recover the funds. “We are partnering with the EFCC to recover $6 billion and N66 billion owed to the federal government, as disclosed in our last report published in September and October 2024. This process is ongoing,” he said.
Orji also provided details about NEITI’s proposed 2025 budget, which stands at N6.5 billion. Of this, N2.220 billion will be allocated to personnel expenses, N1.722 billion for overhead costs, and N2.575 billion for capital projects. He further stated that NEITI plans to release a comprehensive report on the nation’s oil exploration and mining sectors in 2025.
Budget Concerns Raised Over Unnecessary Spending
However, NEITI’s budget proposal was met with criticism from committee members, who questioned the inclusion of what they deemed “unnecessary items” given the current economic challenges.
Kafilat Ogbara, a member of the All Progressives Congress (APC) from Lagos, specifically took issue with the N32 million allocated for meals. “There is no way you can justify spending this amount on meals in a year,” she said. “We must ensure that our budget proposals align with the purpose and necessity of each item.”
Ademorin Kuye, also from Lagos, echoed concerns over the budget’s excessive allocations. “We cannot continue to approve budget proposals without considering the economic reality. We need to be prudent with public funds, and our agencies should be aware that the national assembly won’t approve every proposal just because it’s submitted,” he said.
Alhassan Doguwa, the committee chairman, added that government agencies must be mindful of how public resources are spent. “These funds come at the expense of the Nigerian people, and we need to ensure that every proposal is well-justified,” Doguwa stated.
Despite the criticism, Doguwa assured NEITI of the committee’s support in executing its mandate effectively.
