NEITI, EFCC join forces to recover $6bn from oil firms
The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced its collaboration with the Economic and Financial Crimes Commission (EFCC) to recover $6 billion and ₦66 billion owed to the federal government by oil and gas companies.
NEITI’s Executive Secretary, Ogbonnaya Orji, disclosed this on Monday while defending the organization’s 2025 budget before the House of Representatives Committee on Petroleum Resources (Upstream).
According to NEITI’s September 2024 report, as of June 2024, the federal government’s outstanding revenues from the oil and gas sector stood at $6.071 billion and ₦66.4 billion. These include unpaid royalties and gas flare penalties owed to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) as of August 31, 2024.
NEITI also reported $21.9 million and ₦492.8 million in unpaid petroleum profit taxes, company income taxes, withholding taxes, and VAT due to the Federal Inland Revenue Service (FIRS) by June 2024.
“NEITI is working with the EFCC to recover $6 billion and ₦66 billion owed to the federal government of Nigeria, as disclosed in our last report published in September 2024 and October 30 last year. That process is ongoing,” Orji stated.
2025 Budget Presentation
Orji presented NEITI’s ₦6.5 billion budget proposal for 2025, with ₦2.220 billion allocated for personnel costs, ₦1.722 billion for overheads, and ₦2.575 billion for capital projects. He added that NEITI plans to release a new report on the oil and mining sectors in 2025.
Criticism of Budget Allocations
The budget proposal drew criticism from lawmakers over certain allocations, particularly the ₦32 million earmarked for meals.
Kafilat Ogbara, a member of the All Progressives Congress (APC) from Lagos, described the amount as excessive.
“There is no way you can spend that amount on meals in a year. MDAs should ensure their budget proposals align with actual needs and purposes,” she said.
Ademorin Kuye, another lawmaker from Lagos, cautioned against extravagant proposals, emphasizing the need for prudence.
“The National Assembly will not rubber-stamp extravagant budgets. We must consider the economic situation in the country,” he said.
Committee chairman Alhassan Doguwa echoed these sentiments, urging agencies to be mindful of public spending.
“All these proposals will be funded by the Nigerian people. Some presentations sound insulting to the public,” Doguwa said.
However, he assured the committee’s support for NEITI’s mandate to ensure transparency and accountability in the extractive industries.
