FG Recovers N2.6trn Debt From Oil Firms

The Federal Government has recovered N2.6 trillion debt from some oil firms through the intervention of the National Assembly.

Ogbonnaya Orji, executive secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed this on Tuesday at the civil society organisations (CSO) and media engagement on Extractive Industries Transparency Initiative (EITI) validation in Abuja.

The EITI validation is conducted every three years as a quality assurance mechanism to ascertain the level of compliance and progress in implementing its standards among member countries, including Nigeria.

According to Orji, NEITI’s financial report led to the recovery of the debt, and $2.6 billion remained outstanding owed to the government by the oil companies as of March 2022.

“By the time we release 2021 report, any company owing Nigeria we have no choice than to invite EFCC to take over and handle it as an economic crime,” he said.

In 2019, NEITI released a report which included a list of 77 oil and gas companies that owed the government up to $6.8 billion.

According to Orji, the companies owing federal government decreased to 51 companies and $3.6 billion when it released the 2020 report.

“Which shows that from the point we released that information, a lot of money came in. None of them disputed our report, rather they were giving excuses why they did not pay,” he said.

“The money includes all taxes and VAT being collected by the Federal Inland Revenue Service (FIRS) and all royalties being collected by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).

“NEITI collects nothing, all we are asking is for us to be recognised and offered to thank you.”

He added that through NEITI, there had been increased demand, easy access and availability of verified information and data in the public domain.