The Nigeria Extractive Industries Transparency Initiative (NEITI) has uncovered that oil companies owe the Federation Account a staggering $6.17 billion in unpaid royalties, taxes, and penalties. This sum includes unpaid petroleum profit taxes, gas flare penalties, company income taxes, withholding taxes, and VAT.

According to NEITI’s 2023 industry report, oil companies owe the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) $6.071 billion and N66.4 billion, while the Federal Inland Revenue Service (FIRS) is owed $21.926 million and N492.8 million.

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The report also highlighted a 9% decline in oil and gas revenues compared to the previous year, with a loss of 7.68 million barrels of crude oil attributed to theft and measurement errors. Petrol subsidies amounted to N3.01 trillion in 2023, down from N4.71 trillion in 2022, following a 14% decrease in the importation of Premium Motor Spirit (PMS).

Senator George Akume, the Secretary to the Government of the Federation, assured that NEITI will continue to operate independently. Meanwhile, the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Olanipekun Olukayode, committed to recovering the outstanding revenues, noting that over N1 billion had already been recovered from previous NEITI findings.