Nigeria Extractive Industries Transparency Initiative
The Nigeria Extractive Industries Transparency Initiative (NEITI) has asked the federal government to finance Nigeria’s recovery from its present economic recession with about N7.2 trillion reportedly owed the federation as unpaid oil and gas incomes by the Nigerian National Petroleum Corporation (NNPC) and its subsidiary, the Nigerian Petroleum Development Company (NPDC).
NEITI said in its latest policy brief: “Unremitted Funds, Economic Recovery, and Oil Sector Reform,” released on Tuesday in Abuja, that the NNPC and NPDC still owed the country $21.778 billion and N316.074 billion from oil assets’ sales and investments, taxes, and dividends on oil and gas operations.
It noted that when added up, these unpaid oil revenues amounted to N7.2 trillion, which could be used by the 36 states in the country and federal government to fund recoveries from economic recession.
From its computation of the unpaid revenue and what it could do for Nigeria’s economic recovery plan, NEITI explained that if 20 per cent of it were recovered, it could fund significant parts of the deficit in the federal budget for 2017, while one-third of it could completely eliminate any need to borrow to fund the budget.