By Faridat Salifu
The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that it is collaborating with the Economic and Financial Crimes Commission (EFCC) to recover $6 billion and N66 billion owed the federal government by oil and gas companies.
Ogbonnaya Orji, NEITI’s Executive Secretary, made this disclosure on Monday during his appearance before the House of Representatives Committee on Petroleum Resources (Upstream) to defend the organization’s 2025 budget.
Orji confirmed that the agency was actively working with the EFCC to recover these outstanding revenues, which include unpaid royalties, gas flare penalties, and various taxes due to the government.
In a report released in September 2024, NEITI outlined that as of June 2024, the oil and gas sector owed a total of $6.071 billion and N66.4 billion in unpaid liabilities.
These arrears, according to NEITI, are primarily related to oil royalties, gas flare penalties, and petroleum taxes, which remain outstanding despite previous attempts at recovery.
The report also highlighted additional taxes owed to the Federal Inland Revenue Service (FIRS), amounting to $21.9 million and N492.8 million in unpaid petroleum profit taxes, company income taxes, withholding taxes, and value-added tax (VAT) from oil companies.
Orji addressed lawmakers, stressing the importance of the ongoing partnership with the EFCC to recover the funds.
“NEITI is actively working with the EFCC to recover $6 billion and N66 billion owed to the federal government, as disclosed in our last report published in September 2024,” Orji stated.
Speaking on NEITI’s 2025 budget, Orji revealed that the agency had earmarked N6.5 billion for the financial year. He broke down the allocation, with N2.220 billion set aside for personnel costs, N1.722 billion for overheads, and N2.575 billion for capital projects.
However, members of the House Committee expressed concern over what they described as “unnecessary” expenses in NEITI’s budget, particularly in light of Nigeria’s current economic challenges.
Kafilat Ogbara, an All Progressives Congress (APC) member from Lagos, criticized the allocation of N32 million for meals, questioning the justification for such a large expenditure.
“There is no way you can justify spending that amount on meals in one year,” Ogbara said, arguing, “MDAs must ensure that their budget proposals align with the actual needs and purposes for which the funds are intended. This should not just be about finding ways to allocate money for various purposes.”
Ademorin Kuye, also from Lagos, echoed similar concerns, urging the committee to scrutinize budget proposals more thoroughly. “Agencies should not assume that the National Assembly will approve all the items in their budgets without question,” he said.
