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Oil, gas companies owe FG $6bn, N66bn in unpaid revenues – NEITI report
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The liabilities of oil companies to the Federation have increased to $6.175bn as of June 2024, a new report by the Nigerian Extractive Industries Transparency Initiative has stated.
It noted that in last decade, the Federal Government HAD spent a total sum of N15.8tn on price differentials and under-recovery (subsidy) on the importation of 200.85 billion litres of petrol into the country.
This revelation was contained in the 2022/2023 oil and gas industry report, presented by the agency on Thursday in Abuja. The report’s details were based on an audit of the petroleum industry conducted by the agency during the review period, according to the NEITI Executive Secretary, Dr Orji Ogbonnaya.
“A total of N15.87tn has been claimed as under-recovery/price differentials between 2006 and 2023, with 2022 recording the highest of N4.714tn,” the report read in part.
In his address at the event, Orji said the released report was not just a document but a call to action, marking a significant milestone in the ongoing efforts to promote transparency, accountability, and good governance in Nigeria’s extractive sector.
“This report, produced by the Nigeria Extractive Industries Transparency Initiative, comes at a critical time when the nation is intensifying its reforms in the oil and gas sector. The report provides valuable insights that will help guide policy, encourage robust public debate, and ultimately improve governance in the management of our natural resources,” he said.
Orji further noted the report contains several key findings and recommendations, which include the identification of revenue leakages, the need for improved compliance with regulatory frameworks, and suggestions for increasing transparency in oil and gas operations.
An analysis of the report showed that the government expended a considerable amount of its resources to pay for price differentials, also known as subsidies, between 2014 and 2023, while its petrol imports surged yearly increasing the cost of subsidies.
The report disclosed that the government paid N3.01tn for the petrol subsidy in 2023 compared to N4.71tn paid in 2022.
It stated that a total of 23.54bn litres of PMS (Premium Motor Spirit) were imported into the country in 2022, while 20.28bn litres were imported in 2023. This represents a reduction of 3.25bn litres, or a 14 per cent decline, following the removal of the subsidy.
“A detailed 10-year trend analysis (2014–2023) shows that the highest annual PMS importation into the country, 23.54bn litres, was recorded in 2022, while the lowest, 16.88bn litres, was recorded in 2017. A total of N15.87tn was claimed as under-recovery/price differentials between 2006 and 2023, with the highest amount, N4.714tn, recorded in 2022,” it stated.
A further breakdown showed that N480bn was spent as subsidies for the importation of 18.93bn litres of fuel in 2014. This figure reduced to N320bn despite an increase amount of fuel import of 19.27bn litres in 2015.
In 2016, the NEITI said the government spent N100bn to import 18.76bn liters of fuel while N140bn was disbursed for the for the import of 16.88bn liters of petrol products in 2017.
However, by the following year of 2018, the figure for subsidy increased drastically by N580bn to N720bn, for the import of 20bn liters. The figure dropped sharply to N580bn for an increased import of 20.60bn litres in 2019.
By 2020, the amount spent on subsidy reduced further to N130bn. The government imported a total sum of 22.05bn litres within this period.
In contrast, the government spent N1.16tn as subsidy on the import of 22.54bn liters in 2021, disbursed N4.71tn as a price differential for the import of 23.54bn liters in 2022, and N3.01tn for the import of N20.28bn liters in 2023.
It added that liabilities owed to the federation include $6.071bn and N66.4bn in unpaid royalties and gas flare penalties owed to the Nigerian Upstream Petroleum Regulatory Commission by August 31, 2024.
Additionally, there are outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT owed to the Federal Inland Revenue Service amounting to $21.926m and N492.8m as of June 2024.
Reacting to this, the Chairman of the Economic and Financial Crimes Commission, Olanipekun Olukayode, pledged to recover the owed debts of $6bn and N66bn to the federation.
The EFCC chairman also announced that he had approved the transfer of over N1bn derived from funds recovered through previous NEITI audits into the Federation Account.
Olukayode said, “Over the years as an anti-corruption agency in the country we are part of the success of the work of NEITI. Where the work stops at the level of presenting this report, then we take off from there to ensure that the recommendations therein and revelations therein particularly as relates to criminal infractions, and violation of our financial laws, it is taken up seriously.
“I am also happy to announce to you that as of yesterday (Wednesday), I still approved that over a billion so remitted to the Federal Government account as a result of the work of the last report of NEITI.”
On his part, the Secretary to the Government of the Federation, George Akume, assured stakeholders that the government would continue to grant NEITI the freedom to do fulfill its mandate to the country and the global Extractive Industries Transparency Initiative.
Akume said, “As the Chairman of the NEITI Board, I stand before you today to underscore the Federal Government’s respect for NEITI’s independence. While my role as Chairperson is a testament to the importance the government places on NEITI, it also signifies the commitment to ensure that NEITI operates independently, without interference, as mandated by the EITI standard.
“We have to safeguard this independence with great care and diligence, ensuring that NEITI can operate free from undue influence.”
News
‘Na God go punish you and your family.’ — Davido hits back at critic
Nigerian music star, Davido, has engaged in a heated exchange on social media after a user reacted to a post in which he expressed concern over the state of affairs in Nigeria.
The remarks were contained in a post shared on the singer’s official social media page.
Davido admitted that entertainers, including himself, had not done enough to speak up against the challenges confronting Nigerians, stressing that the level of injustice in the country had become alarming.
His comments, however, drew criticism from a social media user identified as Princess Luna, who questioned the sincerity of the singer’s concerns and accused him of being hypocritical.
“Na God go punish you and your family. Go and do that performative rubbish in your City Boys group chat and get out of my face with all this pretentious nonsense. Na foolish Nigerians I blame,” she wrote.
In response, Davido denied belonging to any political group and defended his history of speaking out on national issues.
The singer recalled facing criticism after publicly commenting on governance issues during an appearance on American media platforms.
He also clarified that his relationship with President Bola Tinubu’s son, Seyi Tinubu, was purely personal, stating that they had been friends for years and that he regularly voiced his concerns about the country’s situation to him.
Davido subsequently fired back at the critic, ending the exchange with a strongly worded rebuke directed at her generation.
“I can’t lie, we entertainers… we dey fuck up, I won’t lie, including me. We need to speak up. It’s too much injustice going on. Our country don go,”
“I no dey part of any City Boy group. When I called out the government on American media, you guys rained curses on me.
“I’ve been friends with ST for years and that’s where it stops, and I call and complain to him all the time, even in person.
“God punish your generation,” the singer wrote.
News
US set to resume attacks on Iran if talks fail — Hegseth
The United States has warned that it is prepared to restart military strikes against Iran if ongoing negotiations fail to produce a lasting agreement, according to U.S. Defense Secretary Pete Hegseth.
Speaking at the annual Shangri-La Dialogue security summit in Singapore on Saturday, Hegseth said Washington possessed the capability and military resources to resume operations if diplomacy breaks down.
“Our ability to recommence if necessary, we are more than capable,” Hegseth said, adding that U.S. weapons stockpiles were sufficient to sustain military action if required.
The Pentagon chief stressed that the U.S. remained committed to security in the Indo-Pacific region despite its involvement in the conflict with Iran, insisting that Washington could simultaneously manage challenges in multiple regions.
“We can do two things at one time. We’re super-charging our defence industrial base so that we’re building two, three and four times the munitions needed to ensure our operational plans are properly funded around the world,” he said.
Hegseth also praised U.S. President Donald Trump for pursuing a diplomatic solution, describing him as “patient” and focused on securing an agreement that would prevent Iran from obtaining a nuclear weapon.
His comments came as U.S. and Iranian negotiators continued efforts to bridge major differences that have stalled talks aimed at ending months of conflict. Trump said on Friday that he would meet with senior advisers in a secure room at the White House to make a “final determination” on a proposal that could extend an early-April truce by another 60 days and provide additional time for negotiations.
The war, launched by the United States and Israel on February 28, has reportedly claimed thousands of lives, particularly in Iran and Lebanon, while also contributing to higher global energy prices.
News
We’re using 31 days to commission projects in FCT to mark Tinubu’s 3rd year anniversary – Wike
The Minister of the Federal Capital Territory (FCT), Nyesom Wike, has announced an unprecedented 31-day marathon project commissionings across the nation’s capital to celebrate President Bola Ahmed Tinubu’s third anniversary in office.
Speaking at a political luncheon in Port Harcourt, the Minister showcased the administrative landmark achievements under his watch, attributing the massive infrastructural development to the strategic backing and vision of the President.
According to Wike, the month-long commissioning circuit will feature major road networks, public utilities, and massive urban renewal projects designed to completely reshape the nation’s capital.
Brushing aside critics, the Minister issued a direct challenge regarding the scale and quality of his administration’s output in the FCT.
”This third year of Mr. President alone…, we are taking 31 days for commissioning of projects in Abuja. I’m not talking about boreholes. I challenge anybody to contradict this” Wike stated.
He emphasized that the rapid development unfolding in Abuja is a direct testament to purposeful leadership, throwing down a challenge to opposition figures to match the scale of the ongoing works.
While highlighting his milestones in the FCT, the former Rivers State Governor pivoted to a surprisingly reconciliatory tone regarding the intense political friction in his home state, offering a blanket pardon to all political opponents.
”I use this opportunity today, to announce that I have forgiven everybody,” Wike declared, stressing that prolonged political warfare serves no constructive purpose.
”I want you to come back home sincerely… We have played politics, we have abused ourselves, this is the right time for you to come back,” he added, urging estranged allies and adversaries alike to swallow their pride and return to a unified fold.
Despite the sweeping offer of peace, the Minister did not mince words regarding the resilience of his political structure back home, which he described as an invincible “rainbow coalition.”
Wike issued strong warnings and assertions regarding the political landscape.
He explicitly warned external forces against attempting to destabilize Rivers State, stating, “Anybody from another state who is trying to destroy Rivers State, the person will have problems… You put your hand, you get fire.”
He asserted that his political machinery has effectively locked down future electoral cycles.
“If you are talking about the governorship election in this state, forget it, it’s gone… If you are thinking that any miracle will happen to overturn, to pull the rug off us, it’s a lie,” he stated.
Reassuring his supporters of their strategic dominance, he noted, “We are very over-alerted anytime, any day. We’ll take you back, we’ll work with everybody. We are not selfish.”
While other states grapple with internal party crises and bitter conflicts within both the PDP and APC, Wike maintained that his political coalition remained secured and fully prepared to maintain its dominance for the next eight years and beyond.
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