NEITI Recovers $3.7 Billion, Targets Additional $6 Billion in Oil Sector Liabilities
The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced that over $3.7 billion was recovered into government accounts in 2020 and 2021 from outstanding liabilities owed by oil and gas companies.
Speaking before the House Committee on Petroleum Resources (Upstream) during the defense of NEITI’s 2025 budget, the agency’s Executive Secretary, Mr. Orji Ogbonnaya Orji, revealed that NEITI, in collaboration with the Economic and Financial Crimes Commission (EFCC), is currently working to recover an additional $6 billion and N66 billion owed to the Federal Government by stakeholders in the oil industry.
Promoting Transparency and Accountability
Orji emphasized that NEITI remains committed to ensuring transparency and accountability in Nigeria’s oil, gas, and mining sectors. He also stated that the agency has submitted all its reports on the extractive industry to the National Assembly for review.
2025 Budget Breakdown
Orji outlined that NEITI’s proposed budget for the 2025 fiscal year amounts to N6.5 billion, allocated as follows:
- N2.220 billion for personnel costs.
- N1.722 billion for overhead expenses.
- N2.575 billion for capital projects.
He also highlighted key activities planned for 2025, which include:
- Conducting audits of the oil, gas, and mining industries.
- Reviewing fiscal allocations and statutory disbursements.
- Researching the actual volume of petrol consumption in Nigeria.
- Conducting studies on the economic impact of energy transition.
- Launching a national perception survey on the implementation of the Extractive Industries Transparency Initiative (EITI) in Nigeria.
Lawmakers Raise Concerns Over Budget Expenditures
Members of the House Committee raised concerns about certain budget allocations, questioning repeated items from the 2024 budget and expenses that appeared excessive amid Nigeria’s economic challenges.
- Kafilat Ogbara (APC, Lagos) criticized the N32 million budgeted for meals, calling it excessive. She urged government agencies to align their budgets with clear objectives to prevent misuse of public funds.
- Ademorin Kuye (APC, Lagos) called for prudence in government spending, stressing that expenditures should reflect the nation’s current economic realities. He also warned against the perception of the National Assembly as merely a “rubber stamp” for budget approvals.
- Chairman Alhassan Ado Doguwa condemned the inclusion of the National Assembly in NEITI’s welfare package, pointing out that no oversight visits had been conducted. He emphasized the need for responsible spending of public resources.
Legislative Support for NEITI’s Mandate
Despite these concerns, Doguwa assured NEITI of the legislature’s support, provided the agency can justify its expenditures. He acknowledged the critical role NEITI plays in ensuring accountability in the extractive industries and stressed that the legislature would ensure the agency has the financial resources needed to perform its duties effectively.
“We will support you as long as your expenditure is justified. The legislature will ensure you have the financial environment needed to discharge your duties effectively,” Doguwa stated.