BREAKING: NEITI: Oil Firms Owe Nigeria N9.33 Trillion, Enough to Cover 72% of 2025 Budget Deficit
The Nigeria Extractive Industries Transparency Initiative (NEITI) at the weekend disclosed that the N9.33 trillion owed the federal government by oil companies operating in Nigeria could offset up to 72 per cent of the total 2025 budget deficit of N13 trillion.
The Executive Secretary of NEITI, Dr Ogbonnaya Orji, who spoke during the first quarter press briefing of the organisation on its activities in Abuja, reiterated that of the $8.26 billion indebtedness to Nigeria, converted to N9.3 trillion at the rate of N1,500 per dollar, $4.85 billion had been recovered since 2021.
Speaking extensively on the achievements of NEITI, Ogbonnaya highlighted enhancing industry reporting, strengthening stakeholders’ engagement as well as workforce development as some of its milestones of NEITI in recent times.
According to him, when paid, the monies owed mostly in unremitted taxes to the federal government will fix several of the funding challenges in the ministries, departments and agencies.
In addition, Orji explained that from NEITI’s latest annual report in 2023, Nigeria had earned N831.15 billion in oil and gas revenues since 1999, N1.55 trillion in solid minerals as well as drilled 19 billion barrels of oil during the period.
In addition, between 2007 and 2003, NEITI noted that the country mined 702.6 tonnes of minerals, with 174 total companies audited and 16 extractive industries reports in oil and gas as well as14 solid minerals reports released between 1999 and 2023.
“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.
“Analyses of how these liabilities when paid could support the federal government’s domestic revenue mobilisation 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 N6.11 trillion, health at N2.48 trillion and social welfare of N724 billion all put together.
“ The liabilities can also knock off about 72 per cent 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,” the transparency organisation stated.
Orji noted that NEITI was continuing its collaboration with the Economic and Financial Crimes Commission (EFCC) to ensure that all monies owed the federal government are promptly paid.
At the event, NEITI reaffirmed its commitment to ensuring that Nigeria’s natural resources work for the benefit of all citizens, with the executive secretary, Orji, stressing that when he assumed office, he inherited an institution at a ‘crossroads’.
“NEITI was grappling with serious operational, institutional, and governance challenges that threatened its effectiveness. These included: The absence of a functional National Stakeholders Working Group (NSWG)-a key requirement for sustaining Nigeria’s membership in the global Extractive Industries Transparency Initiative (EITI) and the threat of eviction from a rented office space.
“(There was) an aging, top-heavy, and disoriented workforce in urgent need of revitalisation; financial constraints, stakeholder apathy, and weak institutional capacity; poor programme content, policy focus, and declining public confidence.
“Beyond these internal challenges, the global extractive industry was undergoing rapid transformation. Issues such as energy transition, beneficial ownership transparency, contract disclosure, and the implementation of Nigeria’s Petroleum Industry Act (PIA) were reshaping the sector.
“NEITI needed to adapt—not just to remain relevant but to lead the charge for greater accountability in extractive governance. Faced with these realities, we pursued a deliberate strategy to reposition NEITI as a stronger, independent, and globally respected transparency institution,” Orji added.
According to him, some of the major achievements include: Enhancing industry reporting & public disclosure; strengthening stakeholder engagement; reconstituting the NEITI NSWG; deepening civil society and public advocacy as well as institutional strengthening & workforce development.
During the period, he said that NEITI secured a permanent office and relocated staff to a conducive and professional work environment; prioritised staff training, embarked on capacity building and recruited young, skilled professionals to address manpower gaps and drive the Initiative’s growth plan.
In addition, he noted that the organisation developed a five-year strategic plan (2022–2026) and a comprehensive strategy that serves as a roadmap for its goals, annual work plans, and budgets.
Orji further highlighted the establishment of the NEITI data center project, reconstitution of the Inter-Ministerial Task Team (IMTT) and strengthening Nigeria’s anti-corruption agenda as some of the strides of NEITI in recent times.
“NEITI remains committed to exposing hidden ownership structures to combat corruption. We will obtain updated beneficial ownership data from the Corporate Affairs Commission (CAC) and publish disclosures on companies acquiring divested assets.
“As we commence the 2024 oil, gas, and solid minerals reports, we will expand our reporting framework to address: Forward sales and pre-export financing transactions; Environmental remediation funds and asset divestments, “NEITI added.
“NEITI will intensify collaboration with the Nigerian National Petroleum Company Limited (NNPC) and other government agencies to disclose forward sales data,” the transparency initiative added.
It was reported last week that the NNPC had sold Nigeria’s oil valued at $21.5 billion in forward sales, constraining the country’s ability to meet its domestic crude oil obligation to local refiners.
