Revenue-generating agencies owe FG N9.3trn — NEITI
Revenue-generating agencies owe FG N9.3trn — NEITI
Revenue-generating agencies owe the Federal Government a total of N9.3 trillion in unremitted liabilities.
The Nigeria Extractive Industries Transparency Initiative (NEITI) revealed this in its 2023 industry report, which draws attention to financial discrepancies within the nation’s extractive sector.
Speaking at a press briefing on the implementation of the Extractive Industries Transparency Initiative in Nigeria, NEITI’s Executive Secretary, Orji Ogbonnaya Orji, explained that the unremitted funds represent around 72 per cent of the projected N13 trillion budget deficit for 2025, underscoring the urgent need for transparency and accountability in revenue collection.
The 2023 industry report, published in September 2024, outlined liabilities amounting to $6.175 billion and N66.378 billion.
Although these figures indicate a decline compared to the 2021 report, NEITI highlighted that the outstanding obligations continue to be a significant concern, particularly given the government’s budgetary requirements for 2025.
Additionally, NEITI revealed that the Agency had successfully recovered over $4.85 billion from the $8.26 billion in disclosures made in its 2021 oil and gas report.
Government liabilities encompass all debts and obligations owed to external entities, including outstanding loans, bonds, and potential future commitments.
Last year, the Office of the Accountant-General of the Federation warned that sanctions could be imposed on Ministries, Departments, and Agencies (MDAs) for failing to remit liabilities totalling N39 trillion.
Addressing the impact of non-payment, Orji pointed out that the N9.3 trillion owed exceeds the total budget allocations for vital national sectors, such as national security (N6.11 trillion), health (N2.48 trillion), and social welfare (N724 billion).
“So far, over $4.85 billion has been recovered from the disclosures of $8.26 billion made by NEITI in its 2021 oil and gas report,” Orji remarked.
“Converted at an exchange rate of N1,500 to a dollar, these liabilities amount to N9.33 trillion. This exceeds the Federal Government’s total budget for health, education, agriculture, and food security, which together stands at N8.73 trillion,” he added.
Orji stressed that these unpaid funds could significantly help reduce the nation’s budget deficit and urged relevant agencies to ensure compliance with revenue remittance.
“NEITI, therefore, calls on all agencies responsible for collecting these revenues to take the necessary actions and assist governments at all levels in providing the much-needed infrastructure for our citizens,” he said.
Orji also reaffirmed NEITI’s commitment to enhancing transparency in the extractive sector, particularly in light of recent oil and gas divestments.
He assured the public that the Agency would continue to uphold its mandate to ensure accountability and efficient management of revenues.
