The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced its intention to recover up to $6 billion, along with another N66 billion, owed to the Nigerian government by oil industry stakeholders. This ambitious move is part of the agency’s commitment to enforcing transparency and accountability within the oil sector.
In a statement made on Monday, NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, revealed the details of the agency’s plans while presenting the 2025 budget before the House Committee on Petroleum Resources, Upstream. The committee, chaired by Hon. Alhassan Ado Doguwa, expressed interest in understanding the steps NEITI is taking to ensure compliance with fiscal regulations in the country’s oil and gas industry.
Dr. Orji emphasized that NEITI’s recovery efforts would not only target the $6 billion but also N66 billion in debts owed by various stakeholders, including oil and gas companies operating within Nigeria’s borders. He further highlighted that over $3.7 billion had already been recovered through NEITI’s oversight, based on reports from 2020 and 2021. These efforts, he assured, were only the beginning.
“We are not resting on our laurels. We are actively working with the Economic and Financial Crimes Commission (EFCC) to pursue recovery of these outstanding debts,” Dr. Orji stated. “This collaboration is crucial in making sure that the oil and gas sector is held accountable for the money owed to the Nigerian people.”
Despite these strides, the committee members were quick to point out certain irregularities in NEITI’s proposed 2025 budget. Some lawmakers raised concerns over the inclusion of budget items that seemed unrelated to the agency’s core functions, particularly in light of Nigeria’s ongoing economic challenges.
Lagos State Representative, Kafilat Ogbara (APC), was vocal in criticizing the proposed N32 million allocated for meals in the NEITI budget, describing it as inappropriate at a time when many Nigerians are struggling. “While the nation faces pressing economic realities, it is important that government agencies, including NEITI, reflect the people’s concerns in their financial planning,” Ogbara remarked.
Similarly, Ademorin Kuye, another member of the APC from Lagos, echoed Ogbara’s sentiments, questioning the necessity of some of the expenditures outlined in NEITI’s budget. “We are not here to rubber-stamp requests. It is important to scrutinize every line item to ensure public funds are used effectively,” Kuye asserted.
The session also saw Hon. Doguwa, the committee chairman, voice concerns about the agency’s proposed welfare packages. “I am puzzled by the inclusion of welfare packages for the National Assembly in your budget proposal. There has been no oversight visit from this committee, so it is unclear why these packages should be part of the budget,” Doguwa pointed out.
The language used in NEITI’s budget document also came under scrutiny, with lawmakers expressing their dissatisfaction over what they termed “imprecise” wording. Doguwa stressed that any government agency proposing a budget must ensure that it is clear, concise, and reflects the realities of the economic climate.
While the committee voiced strong disapproval of some budget items, it was clear that they still recognized NEITI’s vital role in the nation’s governance. In his concluding remarks, Hon. Doguwa assured Dr. Orji and his team that despite the concerns raised, the legislature remains supportive of NEITI’s overall mission.
“Your agency’s work is crucial for Nigeria’s economic development. While we may have disagreements on some issues, rest assured that we will continue to support your efforts in bringing transparency and accountability to the oil and gas sector,” he said.
Dr. Orji, in response, acknowledged the concerns of the lawmakers, stating that NEITI is always open to constructive criticism. “We value the feedback from this committee, and we will take into account all suggestions as we move forward with our mandate. Our commitment to ensuring that Nigeria’s oil and gas sector operates with the highest levels of transparency remains unwavering,” he added.
In the face of these challenges, NEITI remains undeterred in its pursuit of financial recovery and better governance in Nigeria’s oil industry. The agency’s efforts, supported by collaborations with bodies like the EFCC, signal a strong push towards improving the management of Nigeria’s natural resources, even as it navigates the complexities of budgetary allocations and political scrutiny.
The agency’s 2025 budget outlines several key initiatives aimed at furthering these goals, including conducting in-depth reports on the oil, gas, and mining sectors, as well as performing audits on fiscal allocations and statutory disbursements. Another priority will be conducting research into the real consumption of Premium Motor Spirit (PMS) in Nigeria, a subject that has raised numerous concerns among citizens and stakeholders alike.
Despite the hurdles faced during the budget review process, NEITI’s commitment to its mission remains steadfast. The agency’s ongoing efforts are expected to play a pivotal role in ensuring that Nigeria’s oil wealth is used effectively for the benefit of all Nigerians, especially in a time when financial accountability is of paramount importance. As Dr. Orji rightly pointed out, the work of NEITI extends beyond recovering billions; it is about instilling a culture of transparency and responsibility in one of the most critical sectors of Nigeria’s economy.
