In a shocking revelation, the Nigeria Extractive Industries Transparency Initiative (NEITI) disclosed that over $8.3 billion in revenue has gone unremitted to the Federation Account by privately owned oil companies and federal government agencies since 2011.
Dr. Ogbonnaya Orji, the Executive Secretary/CEO of NEITI, made this alarming revelation during his testimony before the House of Representatives Committee on Public Accounts.
Dr. Orji, who was presenting a comprehensive report on the $74.386 billion spent on fuel subsidies by successive administrations since 2011, highlighted the extent of the revenue mismanagement within Nigeria’s oil sector.
The report compiled the actual amount paid as subsidies on a yearly basis.
Furthermore, Dr. Orji revealed that Nigeria has suffered a staggering loss of N16.25 trillion due to unabated crude oil theft since 2011, based on data collated and authenticated by industry operators and stakeholders.
In response to these grave revelations, NEITI has embarked on an ambitious effort to recover the unremitted funds, collaborating with various enforcement institutions, including the Economic and Financial Crimes Commission (EFCC), the Independent Corrupt Practices and Related Offences Commission (ICPC), and the Nigeria Financial Intelligence Unit (NFIU).
Dr. Orji emphasized the transparency efforts of NEITI by stating, “I have here, for instance, revenues we have earned from oil and gas since 1999.
“We also have here all the subsidy payments made. Since 2005, when it became a scandal, we have begun to collect the data.
“We began to ask questions about subsidies, and as of 2021, the country had paid $74.386 billion in subsidies.”
This revelation has sent shockwaves through Nigeria, raising serious questions about the management and accountability of revenue in the oil sector, and the steps being taken to rectify this grave situation.
NEITI’s commitment to transparency and accountability in the oil industry highlights the urgency of addressing these financial discrepancies and recovering the unremitted funds.
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