NEITI urges swift action as unpaid liabilities from oil and gas companies exceed critical national sector budgets and threaten Nigeria’s fiscal stability.
Editor’s Note: This article was originally written on May 2, 2025 and is being republished here for archival purposes.
In a powerful and urgent call to action, the Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that although the Federal Government has successfully recovered over $4.85 billion in unpaid revenues from oil and gas companies, billions of dollars in liabilities still remain outstanding—a situation that poses a major challenge to the financing of the country’s 2025 national budget.
The announcement came during a press briefing by Dr. Orji Ogbonnaya Orji, Executive Secretary of NEITI, where he presented updates from the agency’s 2023 industry report, released in September 2024. According to the report, outstanding financial liabilities by oil and gas operators were estimated at $6.175 billion and N66.378 billion, representing a considerable decline from the $8.26 billion recorded in NEITI’s 2021 audit. However, Orji emphasized that the decline does not erase the deep concern over the unpaid sums, especially at a time when the country is grappling with economic uncertainties and budgetary gaps.
“If we convert the outstanding liabilities using the current exchange rate of N1,500 to a dollar, it amounts to a staggering N9.33 trillion,” Orji noted. “This figure is greater than the total federal government allocations for critical sectors such as health, education, agriculture, and food security combined, which collectively stand at N8.73 trillion in the 2025 budget.”
The comparison paints a grim picture of missed financial opportunities. NEITI’s analysis reveals that the N9.33 trillion in outstanding liabilities could single-handedly offset 72 percent of Nigeria’s projected N13 trillion budget deficit for 2025. The report urges revenue-generating agencies such as the Nigerian National Petroleum Company Limited (NNPCL), Federal Inland Revenue Service (FIRS), and Department of Petroleum Resources (DPR) to intensify their efforts in recovering these funds and ensuring compliance from extractive companies.
“These funds could transform our infrastructure, reduce borrowing, and significantly improve our social services. The urgency cannot be overstated,” Orji declared.
NEITI also broke down how the unpaid funds dwarf Nigeria’s major sectoral budgets: • National Security: N6.11 trillion
• Health Sector: N2.48 trillion
• Social Welfare: N724 billion
In total, these three sectors receive less than the value of unpaid liabilities still owed to Nigeria, underscoring the impact that a comprehensive recovery strategy could have on national development.
Looking ahead, NEITI has announced that its 2024 industry audit report will be released in October 2025. The new report is expected to not only update the figures but also focus on emerging trends, particularly the growing divestment by international oil companies (IOCs). Orji stressed that these divestments present both risks and opportunities and must be managed with transparency and foresight to protect Nigeria’s long-term interests.
Providing historical context, Orji added that between 1999 and 2023, Nigeria earned approximately $831 billion from the oil and gas sector alone, while earnings from the solid minerals sector, over a 17-year period, stood at just N1.55 trillion—highlighting the need for greater diversification and transparency in resource management.
NEITI, a globally recognized member of the Extractive Industries Transparency Initiative (EITI), has consistently served as a watchdog for accountability and transparency in Nigeria’s extractive sectors. Its reports are widely seen as vital tools for reform, revenue recovery, and sustainable development.
Call to Action:
NEITI is now calling on the Nigerian government, regulatory bodies, and citizens alike to demand accountability from companies operating within Nigeria’s extractive industries. The agency reiterated its commitment to not only track revenue flows but also ensure that what is owed to Nigeria is paid in full and utilized for the benefit of its people. “The time to act is now,” Orji said. “Nigeria cannot afford to lose trillions to negligence or inefficiency while critical sectors remain underfunded and millions of citizens continue to live without access to basic services.”
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