The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced the recovery of $4.85 billion unpaid liabilities owed by oil and gas companies.
This announcement is in sync with financial disclosures made in its industry-wide reports, underscoring NEITI’s commitment to enhancing transparency and accountability in Nigeria’s extractive sector.
The recovery is part of the total $8.26 billion identified in NEITI’s 2021 oil and gas audit report.
Speaking during a press briefing in Abuja over the weekend, Dr. Orji Orji, NEITI’s Executive Secretary, stated that the recoveries demonstrate the agency’s commitment to transparency and accountability in Nigeria’s extractive sector.
He mentioned however, that while significant progress has been made in recovering funds, unresolved financial liabilities remain a major concern.
“So far, over $4.85 billion 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 $6.175 billion and N66.378 billion, 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 stated.
The organisation’s boss regretted that despite NEITI’s efforts to ensure financial accountability in the oil and gas sector, several companies have continued to default on payments.
He called on relevant government bodies, including 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.
“Analysis 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 further disclosed plans to broaden the Innitiaves’s industry-wide reports to include dedicated sections on divestments, forward sales of oil and gas assets, and environmental remediation.
This move, he noted, is aimed at strengthening transparency and accountability in the extractive sector.
He stated that while the agency’s current Beneficial Ownership data is up-to-date as of 2023, more work is needed to deepen engagements and public disclosures on companies acquiring divested assets.
While acknowledging the progress made so far by the organisation, Orji highlighted challenges such as institutional constraints, funding limitations, and resistance to change.
He called for collective efforts from the media, civil society, and stakeholders to ensure that Nigeria’s oil, gas, and mining revenues are managed prudently for the benefit of all citizens.
“Transparency is not just a policy; it is a responsibility. NEITI remains steadfast in ensuring that Nigeria’s extractive revenues are accounted for and utilized effectively,” he added
