Abuja, March 31, 2025 – The Nigeria Extractive Industries Transparency Initiative (NEITI) has recovered $4.85 billion unpaid liabilities owed by oil and gas companies in the country.
Dr. Orji Orji, its Executive Secretary, said this at a press conference in Abuja last weekend.
He said the recovery was part of the total $8.26 billion identified in NEITI’s 2021 oil and gas audit report.
Orji said the recovery demonstrated NEITI’s commitment to transparency and accountability in Nigeria’s extractive sector.
He said while significant progress was made in recovering funds, unresolved financial liabilities still remained a major concern.
Orji said that so far, over $4.85 billion had been recovered from the disclosed $8.26 billion
He said that in spite of NEITI’s efforts to ensure financial accountability in the oil and gas sector, several companies continued to default on payments.
The NEITI boss urged the Federal Inland Revenue Service (FIRS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take stronger enforcement actions against defaulters and adopt more stringent measures to prevent future revenue leakages.
He stressed that the total unpaid liabilities by oil companies in the country could cover 72 percent of the federal government’s budget deficit of N13 trillion for 2025.
“Analyses of how these liabilities, when paid, could support the federal government’s domestic revenue mobilization reveal that the liabilities, when converted at N1,500 to one dollar, would amount to N9.33 trillion.
“The sum is more than the federal government’s total budget for health, education, agriculture, and food security, which totals N8.73 trillion.
“Further analyses show that the sum is also more than the total budget for national security (N6.11 trillion), health (N2.48 trillion), and social welfare (N724 billion) combined.
“The liabilities can also offset about 72 percent of the federal government’s budget deficit of N13 trillion for 2025.
“NEITI is therefore calling on relevant agencies responsible for collecting these revenues to do the needful and support our governments at all levels in providing the much-needed infrastructure for our citizens,” he said
Orji said NEITI would review the processes that led to the divestments of about 26 oil blocks in deals worth $6.033 billion by five International Oil Companies, IOCs, operating in Nigeria’s oil and gas industry.
He listed these transactions to include TotalEnergies’ asset sale to Chappal ($860 million), ExxonMobil’s sale to Seplat ($1.28 billion), Eni’s sale to Oando Plc ($783 million), Equinor’s sale to Project Odinmim ($710 million), and Shell’s sale to Renaissance ($2.4 billion).
NEITI boss said there was the need to ensure that the divestments adhered to due process and that all revenue due to the government was duly remitted.
“Oil and gas divestments are reshaping Nigeria’s industry. NEITI recognizes the urgent need for transparency in these transactions to protect national interests, host communities, and revenue flows. To achieve this, NEITI will:
“Expand industry reports to include dedicated sections on divestments.
Strengthen collaboration with NUPRC and NNPC Ltd. to ensure full disclosure of financial, social, and environmental aspects of divestments. Promote greater public awareness and engagement in asset transfers”.
“Oil and gas companies must be held accountable for clean-up costs and remediation efforts. NEITI will work with NUPRC (Nigerian Upstream Petroleum Regulatory Commission) and the Ministry of Environment to ensure transparency in environmental remediation funds,”, he added.
“Forward sales (pre-sales of crude oil and gas) impact government revenues and fiscal stability. NEITI will intensify collaboration with NNPC Ltd. and other government agencies to disclose forward sales data.
“As we commence the 2024 Oil, Gas, and Solid Minerals Reports, we will expand our reporting framework to address: Forward sales and pre-export financing transactions.
“While we have made remarkable progress, challenges remain. Institutional constraints, funding limitations, and resistance to change must be continuously addressed. However, we have learned key lessons: Transparency must be dynamic. Accountability must be proactive. Governance must evolve with emerging global trends”.
“Transparency is not just a policy; it is a responsibility. NEITI remains steadfast in ensuring that Nigeria’s oil, gas, and mining revenues are managed for the benefit of all citizens”.
