NEITI: Oil Firms Outstanding Liabilities Can Fund Nigeria’s Health, Education, Agriculture Budgets
By Juliet Ukanwosu
The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that the total of $6.175 billion and N66.378 billion, owed the federation in form of unremitted taxes by oil and gas firms operating in Nigeria, as captured by it industry reports, could fund the 2025 budgetary allocation for the health, education and agriculture sectors.
Speaking at the weekend at the Agency’s Q1 2025 briefing in Abuja, Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, said the analysis showed that the recoverable sum is also more than the total budget for national security at N6.11 trillion, health at N2.48 trillion and social welfare of N724 billion put together.
Calling on relevant agencies responsible for collecting the revenues to do the needful in ensuring that the outstanding liabilities are recovered and remitted to government coffers, Orji said the liabilities can also knock off about 72% of the federal government’s budget deficit of N13 trillion for 2025.
Dr. Orji said: “The liabilities when converted at N1,500/$1, 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 totaled N8.73 trillion.
“Further analyses show that the sum is also more than the total budget for national security at N6.11 trillion, health at N2.48 trillion and social welfare of N724 billion put together. The liabilities can also knock off about 72% of the federal government’s budget deficit of N13 trillion for 2025.”
The NEITI Executive Secretary however, stated that over $4.85 billion has so far been recovered to the Federal Government coffers from the tax liabilities of oil and gas firms, as disclosed by it reports, stressing that efforts should not be spared to ensure the recovery of the balance.
Dr. Orji further disclosed that Nigeria has earned a total of $831 billion from the oil and gas sector between 1999 and 2023 as revealed by its independent industry audit reports. However, in contrast, he said, the country has earned only N1.556 trillion from the solid minerals sector from 2007 to 2023.
On the poor contribution of solid minerals sector to the nations GDP, Orji said despite the sector holding the largest potential, the 0.8% current contribution is embarrassing.
While noting the rigidity of the 2007 Minerals and Mining Act as part of challenges holding back the solid minerals sector contribution, he said: “The most complex of the challenges are the legal framework, we think the legal framework is very rigid, to the extent that investors find it very difficult to enter and exit.
“The 2007 Mineral and Mining Act centers on the fact that the federal government issues mining licences from Abuja and the mining operations takes place in the states and the governors are the owners of the lands in the state as all the powers are vested on them. So if you get a licence in Abuja and arrive the state, you still have to deal with the bureaucracy in the state as well as dealing with host community challenges” Dr. Orji pointed out.
Meanwhile, speaking on some notable achievements under his watch, he highlighted the reconstitution of the Inter-Ministerial Task Team (IMTT), strengthening Nigeria’s Anti-Corruption Agenda, acquisition of the NEITI House, and the establishment of the NEITI Data Center, which will serve as a one-stop shop for information and data on Nigeria’s extractive sector.
The Executive Secretary further informed that the agency is working on pushing to strengthen transparency in oil and gas divestment, setting up of Environmental Remediation Fund (ERF) to take care of environmental pollution resulting from the decommissioning of oil wells, as well as enhancing Beneficial Ownership transparency and revenue tracking.
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