NEITI: Oil and Gas Companies Owe Nigeria $6.1bn in Unpaid Revenues
By DAYO ADESULU
The Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed that oil and gas companies owe the Federal Government $6.1 billion in outstanding liabilities as of August 2024. These debts include unpaid royalties, taxes, rents, and other collectible revenues.
NEITI has urged the government to recover these funds to support the 2025 budget. The agency’s Executive Secretary, Dr. Ogbonnaya Orji, made this known while addressing the Senate Committee on Public Accounts regarding industry reports for the oil, gas, and mining sectors from 2021 to 2023.
Decline in Crude Oil Losses and Fuel Imports
Despite these financial concerns, the report highlighted key improvements in Nigeria’s oil and gas sector. Crude oil losses dropped by 78%, from 36.6 million barrels in 2022 to 7.68 million barrels in 2023, thanks to enhanced pipeline surveillance and security measures by the Office of the National Security Adviser, the Armed Forces, and other agencies.
Fuel imports also declined by 3.5 billion litres, falling from 23.54 billion litres in 2022 to 20.28 billion litres in 2023. NEITI attributed this reduction to the removal of fuel subsidies.
Revenue and GDP Contribution Drop
However, the oil and gas sector recorded a 13.7% decline in revenue, from $35.78 billion in 2022 to $30.86 billion in 2023. The sector’s contribution to Nigeria’s GDP also fell for three consecutive years—dropping from 7.24% in 2021 to 5.48% in 2023.
Gas production followed the same downward trend, decreasing from 2.52 billion standard cubic feet (scf) in 2022 to 2.49 billion scf in 2023. NEITI called for better alignment between Nigeria’s gas commercialization policies, energy transition initiatives, and the Climate Change Act to accelerate clean and renewable energy adoption.
Senate Committee to Investigate Outstanding Debts
Chairman of the Senate Committee on Public Accounts, Senator Aliyu Wadada, announced plans for a public hearing to scrutinize the outstanding debts. He emphasized that all indebted companies must appear before the committee.
Wadada also criticized the poor revenue performance of Nigeria’s solid minerals sector, stating that remittances do not reflect its vast potential. He called for reforms to unlock the sector’s economic contributions.
NEITI reaffirmed its commitment to transparency in Nigeria’s extractive industries, urging the government to take decisive steps in recovering unpaid revenues and fostering sustainable growth in the sector.
