The Nigeria Extractive Industries Transparency Initiative (NEITI) has successfully recovered $4.85 billion from oil and gas companies that had outstanding liabilities. This recovery is part of a larger $8.26 billion identified in NEITI’s 2021 oil and gas audit report.
Speaking at a press conference in Abuja, NEITI’s Executive Secretary, Orji Ogbonnaya Orji, emphasized that this achievement underscores the agency’s commitment to fostering transparency and accountability within Nigeria’s extractive sector.
Orji noted that while the recovery is significant, the issue of unresolved financial liabilities remains a major concern. “To date, over $4.85 billion has been recovered from the disclosures made in the 2021 oil and gas report. In the 2023 industry reports released in September 2024, NEITI disclosed liabilities of $6.175 billion and N66.378 billion, marking a noticeable decline from the 2021 figures. However, the outstanding amounts are still worrying, especially considering the government’s need to generate resources for the 2025 budget,” he stated.
Despite NEITI’s ongoing efforts to ensure financial accountability in the sector, Orji expressed disappointment that many oil and gas companies continue to default on their payments. He called on the Federal Inland Revenue Service (FIRS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to intensify enforcement actions against defaulters and implement stricter measures to prevent future revenue leakages.
Orji further pointed out the potential impact these unpaid liabilities could have on Nigeria’s domestic revenue mobilization efforts. “If these liabilities were paid and converted at N1,500 to one dollar, they would amount to N9.33 trillion—more than the combined total of the federal government’s 2025 budget for health, education, agriculture, and food security, which stands at N8.73 trillion. This sum is also greater than the combined budget for national security, health, and social welfare, which totals N8.32 trillion,” he explained.
Moreover, Orji highlighted that the outstanding liabilities could significantly reduce the federal government’s projected budget deficit for 2025, which is currently estimated at N13 trillion. “These funds could be instrumental in closing the budget gap and supporting critical infrastructure development,” he added.
NEITI has called on the relevant authorities to take immediate action to recover the remaining unpaid liabilities, urging them to contribute to the government’s efforts to provide essential services and infrastructure for the Nigerian people.
