NEITI partners EFCC to recover $6 billion, N60 billion owed by oil firms

The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced its collaboration with the Economic and Financial Crimes Commission (EFCC) to recover $6 billion and N60 billion owed to the Nigerian government by oil companies operating in the country.

The Executive Secretary of NEITI, Ogbonnaya Orji, disclosed this on Monday while defending the agency’s budget before the House Committee on Petroleum Resources (Upstream) at the National Assembly, Abuja.

Speaking on the recovery efforts, Mr Orji revealed that NEITI had previously recovered $3.7 billion after publishing its 2020 and 2021 reports on the oil sector.

“Over $3.7 billion was recovered into government coffers as outstanding liabilities from companies operating in the oil and gas sector in the country,” he said.

However, he did not provide details regarding the companies and entities owing the government.

Discussing NEITI’s budget proposal, Mr Orji stated that the agency has an envelope budget of N6.5 billion for the 2025 financial year. This budget consists of N2.2 billion for personnel, N1.7 billion for overhead, and N2.6 billion for capital projects.

He explained that the agency’s critical activities for 2025 will include conducting industry reports on the oil, gas, and mining sectors; fiscal allocation and statutory disbursement audits; research studies on the actual volume of petrol consumed in Nigeria; the economic impact of energy transition in the country; and a national perception survey on the implementation of the Extractive Industries Transparency Initiative (EITI) in Nigeria.

Huge allocation for meals

However, the budget proposal came under scrutiny from lawmakers, particularly over a line item allocating N32 million for meals.

Kafilat Ogbara (APC, Lagos) criticised the proposal, questioning why NEITI would allocate such a large sum for meals at a time when many Nigerians are struggling.

“There is no way you can spend that amount of money on meals in a year. Most of our MDAs should ensure that what they are bringing as a budget proposal actually tallies with the line items and the purpose for which the funds are needed.

“Let us not just see budget defence as an opportunity to share money. Let us see it as a means to serve the Nigerian people,” Mrs Ogbara said.

Ademorin Kuye (APC, Lagos) also weighed in, urging government agencies to consider the country’s economic realities when preparing their budgets. He noted that the public perception of the National Assembly as a “rubber stamp” institution must be addressed.

“We are all aware of the situation in the country, and we must be circumspect and prudent in our expenditure. The general feeling out there is that the National Assembly is just a rubber stamp that approves whatever is brought to it by government agencies, and that is not the case,” Mr Kuye said.

The Chairman of the Committee, Ado Doguwa, echoed these concerns, describing some of the proposed line items as “insulting.”

“While I agree that the budget stops at our desk and you are merely presenting a proposal, I must say that the economy is in a dire state, and the citizens we represent are crying out. Government agencies must be mindful of how they spend public resources.

READ ALSOK: Group demands halt to “sham trial” of #EndBadBadGovernance activists

“Some of the proposals brought before us often sound funny and even insulting to the Nigerian people. For instance, welfare packages disguised as ex gratia, health insurance, and packages for critical stakeholders – these need to be properly justified,” Mr Doguwa said.

Despite the criticism, Mr Doguwa assured NEITI of the committee’s support, provided the agency could justify its expenditure.

“Your agency is critical, and the legislature appreciates the work you are doing. We will do our best to support you as long as you can justify your expenditure. The legislature will always provide the enabling financial environment for you to discharge your duties and mandate,” he said.

In December 2024, President Bola Tinubu presented the national budget to a joint session of the National Assembly.

The committees of both the Senate and the House of Representatives are currently conducting budget defence sessions, with various ministries, departments, and agencies appearing before the respective committees to justify their proposals.