Seventy-seven oil companies owe the Federal Government N2.6 trillion naira debt, the Nigeria Extractive Industries Transparency Initiative (NEITI) has said.

NEITI Executive Secretary, Dr. Ogbonnaya Orji disclosed this on Tuesday while presenting the agency’s scorecard in the last seven months during a press briefing in Abuja.

“The NEITI reports based on findings in its 2019 audit of the oil and gas sector show that oil and gas companies in Nigeria owe government about $6.48bn, which equals N2.66tn at today’s exchange rate of N410.35,” he said.

“A breakdown of the figures shows that a total of $143.99m is owed as petroleum profit taxes, $1.089bn as company income taxes, and $201.69m as education tax.

“Others include $18.46m and £972,000 as Value Added Tax, $23.91m and £997,000 as withholding tax, $4.357bn as royalty oil, $292.44m as royalty gas, while $270.187m and $41.86m were unremitted gas flare penalties and concession rentals respectively.”

“A comparative analysis of what this huge sum can contribute to economic development shows that it could have covered the entire capital budget of the federal government in 2020 or even used to service the federal government’s debt of $2.68billion in 2020.

“In 2021, the 2.659 trillion could fund about 46% of Nigeria’s 2021 budget deficit of N5.6 trillion, and is even higher than the entire projected oil revenue for 2021.”

Orji said that he is “committed to strengthening the powers and functions of the NEITI through an amendment of the NEITI Law enacted in 2007”.

“The amendment is to align the law with EITI emerging issues, the new Petroleum Industry Act and ongoing reforms in the industry,” he added.