The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that revenue-generating agencies in Nigeria owe the federal government a staggering N9.3 trillion in unremitted liabilities. This amount is equivalent to approximately 72% of the federal government’s projected budget deficit of N13 trillion for 2025.
The NEITI Executive Secretary, Ogbonnaya Orji, disclosed this information at a briefing to update the public on the implementation of the Extractive Industries Transparency Initiative in Nigeria. The 2023 industry report released by NEITI in September 2024 revealed liabilities of $6.175 billion and N66.378 billion.
The unremitted liabilities owed by revenue-generating agencies are a significant concern for the Nigerian government. The amount owed exceeds the total budget for key national sectors, including national security (N6.11 trillion), health (N2.48 trillion), and social welfare (N724 billion). The NEITI Executive Secretary emphasized that the payment of these liabilities would provide a much-needed boost to the government’s revenue.
NEITI has been working to recover the outstanding liabilities owed by revenue-generating agencies. The agency has recovered over $4.85 billion from the disclosures made in its 2021 oil and gas report. The NEITI Executive Secretary pledged to continue working to recover the outstanding liabilities and to strengthen transparency in the sector.
The non-payment of these liabilities has significant implications for the Nigerian economy. The government’s ability to fund its budget and provide essential services to citizens is severely impacted by the non-payment of these liabilities. The NEITI Executive Secretary emphasized the need for the relevant agencies to take immediate action to remit the outstanding liabilities.
The Nigerian government has taken steps to recover the outstanding liabilities owed by revenue-generating agencies. In 2024, the government threatened to sanction ministries, departments, and agencies for non-compliance and non-payment of liabilities worth N39 trillion.
The revelation by NEITI that revenue-generating agencies owe the Nigerian government N9.3 trillion in unremitted liabilities is a significant concern. The payment of these liabilities is critical to the government’s ability to fund its budget and provide essential services to citizens. NEITI’s efforts to recover the outstanding liabilities and strengthen transparency in the sector are commendable.