The Nigeria Extractive Industries Transparency Initiative has disclosed that revenue-generating agencies owe the government N9.3 trillion in unremitted liabilities.
According to NEITI’s 2023 industry report, this amount could cover approximately 72% of the Federal Government’s projected N13 trillion budget deficit for 2025.
NEITI Executive Secretary, Orji Ogbonnaya Orji, disclosed this during a briefing on the implementation of the Extractive Industries Transparency Initiative in Nigeria.
The 2023 industry report, released in September 2024, revealed liabilities of $6.175 million and N66.378 billion, marking a significant decline from the figures reported in 2021.
NEITI noted that the liabilities remain concerning, given the government’s need to secure resources for the 2025 budget.
Orji also revealed that the agency has recovered over $4.85 billion from the $8.26 billion disclosed in its 2021 oil and gas report.
Government liabilities include all debts and obligations owed by an agency or government, covering financial commitments such as outstanding loans and bonds, as well as potential future obligations like social security payments and guarantees.
Last year, the Accountant-General’s office warned that Ministries, Departments, and Agencies could face sanctions for failing to pay liabilities amounting to N39 trillion.
Orji highlighted that the unpaid liabilities surpass the total budget for key national sectors. He noted that the amount exceeds the combined budgets 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.”
The ES vowed to improve transparency in the sector, especially in recent oil and gas divestments.
