THE Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that oil and gas firms in the country owed the Federal Government (FG) over $6 billion and N66 billion, respectively.
NEITI stated in its latest report that outstanding collectable revenues due to the FG in the oil and gas industry as of June 2024 had risen to over $6.071 billion and N66.4 billion.
These figures were among the key findings of NEITI’s 2022 and 2023 Independent Oil and Gas Industry Report, released on Thursday, September 26 in Abuja.
The report was released by The National Stakeholders Working Group (NSWG) which serves as the board of NEITI, with support from The Rule Of Law And Anti-Corruption (ROLAC).
According to a statement by NEITI, a breakdown shows that the outstanding liabilities were $6.049 billion and N65.9 billion in unpaid royalties and gas flare penalties, due to the Nigerian Upstream Petroleum Regulatory Commission (NUPRD) as collectable revenues by August 31, 2024.
The report also provides a detailed analysis of the information and data regarding who owes what in outstanding revenues due to the government.
A further breakdown shows outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT due to the Federal Inland Revenue Service, amounting to $21.926 million and N492.8 million as of June 2024.
While welcoming participants to the event, the executive secretary (ES) of NEITI, Orji Ogbonnaya Orji, said the reports came at a critical time when the nation was intensifying its reform in the oil and gas sector.
He added that the report provided valuable insights that would help guide policy, encourage robust public debate and improve governance in the management of natural resources.
“The importance of this cannot be overstated. It serves as an authoritative document that provides comprehensive data and information on revenues, governance structure, operations and compliance within the oil and gas sector for the 2022/2023 period,” Orji stated.
Speaking at the event, the secretary to the government of the federation (SGF), George Akume, who doubles as the chairman of the NEITI board, reaffirmed the unwavering commitment of the government to the principles of the Extractive Industries Transparency Initiative (EITI) being implemented in the country’s oil and gas sector by NEITI.
He stated that the government considered the EITI not only as a global standard for promoting clarity in the management of revenues from natural resources but also as a tool to boost public trust, accountability, and economic growth.
Akume acknowledged that information and data provided by NEITI’s independent reports had consistently proven invaluable to the government and had guided policy decisions, reforms, and measures that foster accountability, particularly in the oil and gas sector.
“In a sector where opacity could easily lead to leakages, inefficiencies, and corruption, NEITI has become an indispensable partner in ensuring that Nigerians are fully aware of how their commonwealth is managed.
“While my role as chairperson is a testament to the importance the government places on NEITI, it also signifies the commitment to ensure that NEITI operates independently, without interference, as mandated by the EITI standard. It is our duty to safeguard this independence with great care and diligence, ensuring that NEITI can operate free from undue influence,” the SGF noted.
He gave the assurance that the government’s commitment to this process extended beyond simple endorsement.
According to Akume, the government considers NEITI’s role as a beacon of transparency and accountability in the extractive industries, and the credibility of its reports serves as a foundation for formulating national policies, fighting corruption, revenue growth, and ensuring equitable distribution of revenues.
“The data contained in this report will inform critical government decisions moving forward, especially as we continue to prioritise resource management, revenue mobilisation, and public accountability,” the SGF added.
The chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, the special guest at the occasion, emphasised the strong partnership between the commission and NEITI in combating corruption, particularly in the oil, gas, and mining sectors.
He highlighted that the EFCC’s work seamlessly picked up where NEITI ended, ensuring a cohesive approach to tackling corruption.
Olukoyede announced that the EFCC recently recovered over N1 billion from NEITI’s past reports and successfully remitted it to the government. This achievement underscores the effectiveness of their collaboration, he said.
He promised that the EFCC would thoroughly investigate the findings and recommendations from NEITI’s current reports, demonstrating its commitment to transparency and accountability.
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