By Mercy Aikoye
The Nigeria Extractive Industries Transparency Initiative (NEITI) is working with the Economic and Financial Crimes Commission (EFCC) to recover approximately $6 billion and N66 billion from oil sector industry players for the Federal Government. This was disclosed by the Executive Secretary of NEITI, Ogbonnaya Orji, while defending the agency’s 2025 budget proposal before the House Committee on Petroleum Resources (Upstream) in Abuja.
According to Orji, NEITI’s primary objective is to promote transparency and accountability in Nigeria’s oil and gas sector, as well as the mining industry. The agency has been instrumental in identifying and recovering unpaid revenues from companies operating in these sectors.
The proposed budget for NEITI in 2025 is N6.5 billion, allocated into three categories: personnel (N2.22 billion), overhead (N1.72 billion), and capital expenditures (N2.58 billion). Orji outlined several critical activities planned for 2025, including conducting industry reports, fiscal allocation and statutory disbursement audits, and research studies on energy transition and petrol consumption in Nigeria.
One of the key focus areas for NEITI in 2025 is the recovery of outstanding liabilities from companies operating in the oil and gas sector. Orji reported that the agency had successfully recovered over N3.7 billion in unpaid revenues from these companies in the past year.
However, members of the House Committee on Petroleum Resources (Upstream) raised concerns about the agency’s budget proposal. They questioned the inclusion of items that were already budgeted for in 2024, as well as the justification for certain expenditures given the current economic climate.
Kafilat Ogbara, representing Kosofe Federal Constituency, Lagos State, emphasized the need for government agencies to ensure that their budget proposals align with the specified line items and purposes. She expressed surprise at the allocation of N32 million for meals in 2025, considering the economic challenges faced by Nigerians.
Ademorin Kuye, representing Shomolu Federal Constituency, Lagos State, cautioned that government agencies must be mindful of the economic situation in the country when preparing their budget proposals. He noted that the public perceives the National Assembly as a “rubber stamp” that approves proposals without scrutiny.
The Chairman of the Committee, Alhassan Ado-Doguwa, also criticized the language used in the budget proposal and the inclusion of the National Assembly as beneficiaries of the agency’s welfare package. He questioned why the agency would include the National Assembly in its welfare package, given that the committee had not visited the agency on oversight.
Despite these concerns, Ado-Doguwa assured the agency that the committee would support its mandate, provided that the agency could justify its expenditures. He emphasized the importance of transparency and accountability in the management of public resources.
The recovery of unpaid revenues from the oil and gas sector is a significant challenge facing the Nigerian government. NEITI’s efforts to promote transparency and accountability in this sector are crucial to ensuring that the country receives its fair share of revenues.
In 2023, NEITI reported that oil and gas companies owed the government over $6 billion and N66 billion in unpaid revenues.¹ The agency’s collaboration with the EFCC to recover these debts is a positive step towards addressing this issue.
The success of NEITI’s efforts will depend on the agency’s ability to work effectively with other government agencies and stakeholders to promote transparency and accountability in the oil and gas sector.
