Poor record keeping by oil firms, government agencies cost Nigeria over $8.3bn unremitted revenue in 12 years- NEITI informs Reps Committee

Oredola Adeola

Nigeria Extractive Industries Transparency Initiative (NEITI) has attributed the industry scandal and unremitted revenue of about $8.3 billion in 12 years to poor record keeping and carelessness by some privately owned oil firms and Federal Government-owned Agencies.

Dr. Ogbonnaya Orji, Executive Secretary/CEO NEITI, made this known during an interactive session with Hon. Bamidele Salam, Chairman, House Committee on Public Accounts, over the Agency’s 2021 industry reports.

While confirming the plan by NEITI to release a report on fiscal allocation and statutory disbursements between 2009 and 2020, Dr. Orji disclosed that NEITI uncovered over $8.3 billion unremitted revenue by some privately owned oil firms and Federal Government-owned Agencies which was not paid into the Federation Account, in deviant to provisions in the extant financial regulations.

He said, “NEITI has identified a lot of recoveries for the government because between what is paid and what was recovered, a lot of money in foreign exchange developed wings.

“Company A will say we paid $1 million, and you go to the account of the receiving agency, and you find out that either half of that money was not received, or more is received more than what was paid because of poor record keeping and carelessness.

Dr. Orji emphasised that NEITI collaborating with various enforcement Institutions including the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Related Offences Commission (ICPC) as well as Nigeria Financial Intelligence Unit (NFIU) in the bid to recover the find into government’s coffers.

He said that Nigeria lost over N16.25 trillion due to oil theft in the country, while a total of $74.386 billion was spent on fuel subsidy by successive administrations since 2011.

He further confirmed that NEITI has compiled the actual amount paid as subsidy on a yearly basis. Orji claimed that the compilation was based on data collated and signed off by operators in the industry and other stakeholders.

The NEITI boss mentioned that the PAC is now a natural ally of his agency, and he will give it all the maximum cooperation needed.

“We are concerned about the unremitted funds on the part of some government agencies and companies. This is happening at a time when the government is borrowing. So, we bring this information with incisive and empirical information and data with evidence and table it.

“In every year, under the EITI framework, we ask the question, how much money do the companies pay to the government? How much of that money does the government receive? Where is the money? What did we use the money for?

“And in the wisdom of the National Assembly in formulating the law, we asked if the companies paid what they should pay and if the government received what it should receive?”, Dr. Orji said.