Ogbonnaya Orji, the Executive Secretary/CEO of the Nigeria Extractive Industries Transparency Initiative (NEITI), stated that Nigeria has incurred a loss of over N16.25 trillion due to oil theft in the country. Orji reported this to the Chairman of the House Committee on Public Accounts, Bamidele Salam, during an interactive session in Abuja. He also claimed that successive administrations have spent $74.386 billion on fuel subsidy since 2011. NEITI has compiled the actual subsidy amounts paid annually based on data from industry operators and stakeholders. Additionally, the agency has identified over $8.3 billion in unremitted revenue by some privately owned oil firms and federal government-owned agencies, which were not paid into the Federation Account as required by financial regulations. NEITI is working with enforcement institutions like the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Related Offences Commission (ICPC), and the Nigeria Financial Intelligence Unit (NFIU) to recover these funds for the government.
Orji emphasized the need for transparency and accountability in the oil and gas sector. He stated that they have collected data on revenues earned from oil and gas since 1999, as well as information on subsidy payments. He provided details on the substantial subsidy payments made, totaling $74.386 billion, and noted that NEITI also has a breakdown of annual payments.
Regarding oil theft, Orji revealed that $16.25 billion has been lost in Nigeria, and this data was obtained from various reports and records from operators and government agencies. NEITI’s reports provide empirical data, evidence, and information on how much companies pay to the government and how much the government receives, ensuring transparency and accountability in resource management.
NEITI plans to release a report on fiscal allocation and statutory disbursements on November 9, 2023, which will include information on the beneficiaries and how the funds were allocated and utilized by various government agencies and companies receiving funds from the extractive sector.
Orji acknowledged the cooperation between NEITI and the House Committee on Public Accounts and emphasized the importance of ensuring that companies pay what they owe, and the government receives what it is entitled to, for the benefit of all Nigerians.