The Nigeria Extractive Industries Transparency Initiative (NEITI) has exposed a staggering debt of $6.071 billion and N66.4 billion owed by oil and gas companies to the Federal Government.
The debt portfolio revealed in NEITI’s 2022/2023 Independent Oil and Gas Industry Report, includes unpaid royalties and gas flare penalties totaling $6.049 billion and N65.9 billion, as well as outstanding taxes and VAT amounting to $21.926 million and N492.8 million.
Speaking at the Public Presentation of the reports in Abuja on Thursday, NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, said the report provides valuable insights to guide policy, encourage public debate, and improve governance in managing Nigeria’s natural resources.
“The report remains a vital tool for identifying leakages, improving revenue collection, and promoting resource management reforms,” Dr. Orji stated.
Key findings in the report also show a significant reduction in fuel importation, from 23.54 billion liters in 2022 to 20.28 billion liters in 2023
Crude production increased from 490.945 million barrels in 2022 to 537.571 million barrels in 2023.
Additionally, the report revealed a 79% drop in oil theft and crude losses, from 36.69 million barrels in 2022 to 7.68 million barrels in 2023.
Secretary to the Government of the Federation, Sen. George Akume, reaffirmed the Federal Government’s commitment to NEITI’s principles, praising the Agency’s role in promoting transparency and accountability.
“The Federal Government considers NEITI’s role as a beacon of transparency and accountability in the extractive industries,”
He assured that the government will thoroughly study the report to ensure effective implementation.
“The lessons learned from the report will help strengthen transparency and accountability in government, which is a significant step towards good governance”
Already, the Nigerian anti-graft body, the Economic and Financial Crimes Commission (EFCC) Chairman, Olanipekun Olukoyede has vowed to investigate and recover debts owed to the government, citing NEITI’s reports as crucial in the fight against corruption.
“Where NEITI’s work stops, EFCC’s begins,” Mr. Olukoyede stated, announcing plans to probe companies identified in the report.
He also disclosed that over N1 billion has been approved for remittance to the Federation Account as a result of investigations sparked by NEITI’s previous report. Additional investigations are ongoing.
“This demonstrates the effectiveness of NEITI’s reports in recovering public funds and promoting accountability,”
Source: AIT
