Joseph Bakare
The Nigeria Extractive Industries Transparency Initiative has disclosed the recovery of over $4.85bn from the disclosures of $8.26bn made in its 2021 oil and gas report.
The Agency however revealed that revenue-generating Agencies currently owe the government a total sum of N9.3tn in unremitted liabilities.
The NEITI noted that this amount revealed in its 2023 industry report would cover approximately 72 per cent of the Federal Government’s projected budget deficit of N13tn for 2025.
The Executive Secretary of the Agency, Orji Ogbonnaya Orji, gave the update at a briefing to provide more information to the public on the implementation of the Extractive Industries Transparency Initiative in Nigeria.
In the 2023 industry reports released in September 2024, NEITI disclosed liabilities of $6.175m and N66.378bn, showing a significant decline from the liabilities of the 2021 reports.
NEITI said the liabilities were yet worrisome because of the need for the government to find resources to fund its 2025 budget.
Government liabilities encompass all debts and obligations an agency or government owes to others, including financial obligations like outstanding loans and bonds, but also potential future obligations like social security payments or guarantees.
Last year, the government, through the office of the Accountant-General of the Federation, threatened to sanction Ministries, Departments, and Agencies for non-compliance and non-payment of liabilities worth N39tn.
Speaking about the implication of non-payment, the ES said the owed amount exceeds the total budget for key national sectors.
He said it is more than the combined budget for national security (N6.11tn), health (N2.48tn), and social welfare (N724bn).
He said, “So far, over $4.85bn was recovered from the disclosures of $8.26bn made by NEITI in its 2021 oil and gas report.
“In the 2023 industry reports released in September 2024, NEITI disclosed liabilities of $6.175bn and N66.378bn, showing a significant decline from the liabilities of the 2021 reports, yet worrisome because of the need for the government to find resources to fund its 2025 budget.
“Analyses of how these liabilities, when paid, could support the Federal Government’s domestic revenue mobilisation reveal that the liabilities, when converted at N1,500 to one dollar, would amount to N9.33tn. The sum is more than the Federal Government’s total budget for health, education, agriculture, and food security, which totalled N8.73tn.
“Further analyses show that the sum is also more than the total budget for national security at N6.11 trillion, health at N2.48tn and social welfare of N724bn all put together.
The liabilities can also knock off about 72 per cent of the Federal Government’s budget deficit of N13tn for 2025.
“NEITI is therefore calling on relevant agencies responsible for collecting these revenues to do the needful and support our governments at all levels to provide the much-needed infrastructure for our citizens.