The Nigeria Extractive Industries Transparency Initiative (NEITI) said it has successfully recovered $4.85 billion from unpaid liabilities owed by oil and gas companies in Nigeria, marking a significant step in the agency’s ongoing efforts to promote transparency and accountability in the extractive sector.

The recovered sum is part of a larger $8.26 billion in outstanding obligations identified in NEITI’s 2021 oil and gas audit report. However, despite this recovery, billions remain unpaid, raising concerns about revenue leakages and the financial burden on the government as it struggles to fund critical projects.

Speaking at a press conference in Abuja, NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, stated that while significant progress has been made in recovering funds, unresolved financial liabilities continue to pose a major challenge.

“So far, over $4.85 billion was recovered from the disclosures of $8.26 billion made by NEITI in its 2021 oil and gas report. In the 2023 industry reports released in September 2024, NEITI disclosed liabilities of $6.175 billion and N66.378 billion, showing a significant decline from the liabilities of the 2021 reports, yet worrisome because of the need for government to find resources to fund its 2025 budget,” Orji said.

He lamented that despite NEITI’s continuous efforts to ensure financial accountability, several oil and gas companies still default on their payments. He urged the Federal Inland Revenue Service (FIRS) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to adopt more stringent enforcement measures against defaulters to prevent further revenue losses.

“NEITI is therefore calling on relevant agencies responsible for collecting these revenues to do the needful and support our governments at all levels to provide the much-needed infrastructure for our citizens,” Orji stated.

To highlight the economic significance of these unpaid debts, Orji provided an analysis of how the funds could impact national development if fully recovered.

“Analyses of how these liabilities, when paid, could support the federal government’s domestic revenue mobilization reveals that the liabilities, when converted at N1,500 to one dollar, would amount to N9.33 trillion.

“The sum is more than the federal government’s total budget for health, education, agriculture, and food security, which totaled N8.73 trillion. Further analyses show that the sum is also more than the total budget for national security at N6.11 trillion, health at N2.48 trillion, and social welfare of N724 billion all put together. The liabilities can also knock off about 72% of the federal government’s budget deficit of N13 trillion for 2025,” he explained.

Orji stressed that the urgency of revenue recovery could not be overstated, as Nigeria faces mounting fiscal challenges. He called on relevant government agencies to ensure that oil companies meet their financial obligations, noting that improved revenue mobilization is essential for the country’s economic stability.

In a related development, NEITI announced plans to review a series of oil block divestments worth $6.03 billion, involving 26 assets sold by five International Oil Companies (IOCs). The divestments include major deals such as Shell’s $2.4 billion sale to Renaissance, ExxonMobil’s $1.28 billion transfer to Seplat, and TotalEnergies’ $860 million sale to Chappal Energies. Orji stated that these transactions are reshaping Nigeria’s oil and gas landscape, making it imperative to ensure that they are conducted transparently and in line with regulatory requirements.

“NEITI recognizes the urgent need for transparency in these transactions to protect national interests, host communities, and revenue flows. To achieve this, NEITI will expand industry reports to include dedicated sections on divestments and intensify collaboration with NNPC Ltd. and other government agencies to disclose forward sales data,” Orji said.

He explained that NEITI would work closely with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to oversee these divestments and ensure full disclosure of all financial, social, and environmental aspects of the transactions. The agency will expand its industry reports to include detailed sections on divestments while intensifying collaboration with government agencies to disclose forward sales data.

Beyond financial transparency, Orji raised concerns about the environmental impact of these divestments. He cautioned that some oil firms might have exited their operations without adequately addressing the environmental damage caused by their past activities.

“NEITI will work with regulatory agencies, including the Ministry of Environment, to ensure oil firms are held accountable for clean-up costs and remediation efforts,” Orji said.

He stressed that host communities must not be left to suffer the consequences of oil exploration and that proper clean-up efforts must be enforced before companies are allowed to complete their exits.

In addition to the divestment review, NEITI is set to examine Nigeria’s forward sales of crude oil, particularly transactions where oil is exchanged for loans. The decision comes amid growing concerns from local refineries about inadequate crude oil supply, which has affected domestic refining operations.

Providing a broader industry overview, Orji revealed that Nigeria had earned $831 billion from oil and gas revenues since NEITI began sector audits 23 years ago. He also disclosed that over $4.85 billion had been recovered from the disclosures of $8.26 billion made in NEITI’s 2021 oil and gas report.

“As we commence the 2024 Oil, Gas, and Solid Minerals Reports, we will expand our reporting framework to address forward sales and pre-export financing transactions,” he stated.

While acknowledging Nigeria’s progress in promoting transparency within the extractive sector, Orji noted that institutional constraints and funding limitations continue to pose challenges to achieving full accountability.

NEITI’s findings come at a time when the Nigerian oil industry is experiencing a shift, with IOCs exiting onshore and shallow-water operations due to security concerns.

Earlier this year, Shell completed the sale of its Nigerian onshore subsidiary, Shell Petroleum Development Company (SPDC), to Renaissance, a consortium of mostly local companies. The move was part of Shell’s broader strategy to focus on deepwater and integrated gas assets. Similarly, TotalEnergies sold its 10 percent stake in 15 oil mining leases and the Forcados and Bonny export terminals to Mauritius-based Chappal Energies for $860 million.

Experts attribute these exits to the growing insecurity and vandalism of oil infrastructure in the Niger Delta. With pipeline attacks and crude theft becoming more rampant, multinational oil companies have found it increasingly difficult to sustain onshore operations. This has led them to shift focus to offshore fields, where security risks are significantly lower.

NEITI’s latest report underscores the urgent need for stricter enforcement of financial accountability in Nigeria’s oil sector. With billions in unpaid obligations, the government faces a critical challenge in ensuring that oil companies fulfill their financial responsibilities while also addressing the economic consequences of IOC divestments.

Mali, Burkina Faso, and Niger have announced a 0.5% levy on imported goods from the Economic Community of West African States (ECOWAS) member nations, including Nigeria, in a move that is expected to further strain relations with the regional bloc.

The levy, which takes effect immediately, is aimed at funding the newly formed Alliance of Sahel States (AES)—the three-nation military bloc that broke away from ECOWAS earlier this year.

The decision marks a significant departure from the long-standing free trade agreements within West Africa and signals a new phase in the economic realignment of the three Sahel nations, which have been governed by military juntas since their respective coups.

While junta leaders claim the levy is necessary to sustain their alliance, economic analysts warn that this new tariff could backfire, ultimately harming their fragile economies by driving up prices and discouraging cross-border trade.

The Alliance of Sahel States was initially established in 2023 as a security pact to combat Islamist insurgencies, but it has since expanded its ambitions into the economic sphere. Military rulers in Mali, Burkina Faso, and Niger have pushed for deeper financial and trade integration, including plans to introduce a common biometric passport and other policies to boost internal cooperation.

Under the newly announced trade policy, all imports entering the three countries from ECOWAS nations will be subject to a 0.5% levy, excluding humanitarian aid. The funds generated from the tariff, according to officials, will help finance the operations of the Alliance of Sahel States. However, no specifics have been provided on how the funds will be allocated, raising concerns about transparency and economic sustainability.

Potential Economic Backlash

While the junta governments see the tariff as a means to raise funds for their economic independence, analysts warn that the measure could hurt the very economies it is meant to support.

The three Sahel nations are among the poorest in the world, heavily reliant on trade and imports for essential goods, particularly from coastal ECOWAS states like Nigeria, Ghana, Côte d’Ivoire, and Senegal. People are concerned that besides disrupting the economic objective of the African Continental Free Trade Area (AfCFTA), the new levy could drive up the cost of goods in Mali, Burkina Faso, and Niger, exacerbating inflation and worsening living conditions for their already struggling populations.

Additionally, businesses that rely on importing materials from ECOWAS nations could see their profit margins shrink, potentially leading to job losses and further economic stagnation. The World Bank has previously warned that trade restrictions in West Africa could reduce economic growth, particularly in landlocked nations like Mali and Burkina Faso, which depend on external trade routes.

Impact on Nigeria and Regional Trade

Nigeria, which has long been one of Niger’s top trading partners, is among the countries likely to be affected by this tariff. In 2022, Nigeria exported $290 million worth of goods to Niger, but by 2023, exports had already declined to $209 million, reflecting the strain in economic ties. Major Nigerian exports to Niger include:

• Petroleum Gas ($44.6M)
• Electricity ($41.5M)
• Cement ($32.8M)

The introduction of the 0.5% levy could further discourage Nigerian exporters from trading with Niger, as additional costs may make it less profitable to do business in the region.

Beyond Nigeria, the broader ECOWAS trade network could face disruptions, particularly for Burkina Faso and Mali, which depend on coastal nations for access to seaports. If trade slows down due to the new tax, the supply of crucial goods like food, fuel, and raw materials could be impacted, leading to higher prices and economic hardship for local populations.

Deepening Rift Between ECOWAS and the Military Juntas

The imposition of this tariff is the latest move in the ongoing standoff between ECOWAS and the Alliance of Sahel States. The three countries officially withdrew from ECOWAS earlier this year, citing frustration over what they described as the bloc’s failure to support their fight against Islamist insurgents.

ECOWAS had imposed economic sanctions on these nations following their military coups, hoping to pressure them into returning to democratic rule. However, rather than giving in to the pressure, the juntas have doubled down on their independent political and economic strategies, effectively cementing their breakaway from the regional bloc.

With relations between ECOWAS and the Sahel bloc at an all-time low, experts say the introduction of the levy further reduces the chances of reconciliation. Some observers warn that if the Sahel countries continue down this path, they risk isolating themselves economically, which could worsen their financial and security challenges in the long run.

Uncertain Future for the Alliance of Sahel States

Despite the juntas’ ambitions to create an alternative to ECOWAS, it remains unclear whether the Alliance of Sahel States has the financial and institutional capacity to sustain itself. The economies of Mali, Burkina Faso, and Niger are weak and heavily dependent on foreign aid, and their access to international credit markets has been severely limited since their respective military takeovers.

With the introduction of the 0.5% tariff, the military leaders are betting on trade revenues to keep their governments afloat. However, if economic activity slows down and foreign businesses pull out of the region, the move could ultimately backfire, leaving the countries in a deeper financial crisis.

Analysts say that while the juntas are trying to project economic strength and self-reliance, they may have underestimated the long-term consequences of alienating ECOWAS and imposing additional barriers to trade.

For businesses operating in West Africa, the new levy is a clear sign that the region’s political and economic landscape is shifting rapidly, with growing uncertainty over the future of regional cooperation.

If you dislike your teacher, you will likely struggle in that class. If you hate your school, you will not have the energy to give your best right there. And if you hate what you do, you will remain unsettled, and will not offer the best doing it. And if you hate your country, most times, your mind will not be open to see the “good” in it.

Young People in Nigeria, the message is to overcome despair with optimism, and in that construct see why the billionaires are getting richer, and startups minting $millionaires, despite all the challenges: “Jim Ovia, the chairman and founder of Zenith Bank, and Tony Elumelu, the Chairman of UBA, are set to receive a staggering N25.4 billion and N12.71 billion dividend payout respectively for the 2024 financial year, an outcome of their banks’ record-breaking performance.”

The Zenith payout, scheduled for April 15, 2025, follows a year in which the bank delivered an exceptional profit after tax of N1.03 trillion, a significant 52.5% increase from the N676.9 billion reported in the previous year.

The financial statements for the year ended December 31, 2024, reveal that the Board of Directors has proposed a final dividend of N4.00 per share. This, when combined with the N1.00 interim dividend per share paid earlier in the year, brings the total dividend payout to N5.00 per share.

For Ovia, whose direct shareholding stands at 3,552,949,395 shares and indirect holding at 1,529,851,344 shares, the total shareholding of 5,082,800,739 shares translates to a windfall of N25,414,003,695.

Tomorrow is a promise and you can win it. Live positively! The sounds of crickets will come through. The happy birds will break. And the future will turn out GREAT provided you can focus on doing PRODUCTIVE things, one step at a time.

People will tell you that you have no connections. Those things do not matter: excellence will connect you to any level.  You just need to work hard to make people know what you do well. Over time, opportunities will break. The day they asked me to come to Harvard Business Review because of an article I wrote, I could not believe it. I did not know that someone in the finest business temple was reading me. It was the same connecting into Elumelu, Bill Gates, etc worlds; people just discover you! Think positive. Be positive. Put in more effort. You will win the FUTURE.

I have put some things you can do to improve your webinality (web + personality). Do them and keep improving with sheer optimism.