The 2021 audit report of the Nigerian Extractive Industry Transparency Initiative (NEITI) will, among other things, establish the volume of crude oil stolen from the country, The Nation has learnt.
The report, which will be concluded this year, according to the agency’s Executive Secretary, Dr. Orji Ogbonnaya Orji, will also reveal how the oil allocated for local consumption, in the period under review was managed.
Addressing reporter at the weekend in Abuja, Orji said: “We want to establish the quantity of crude that is produced and how many of that crude can be accounted for, how much was stolen. We want to establish how much of that crude was exported, how many barrels were reserved for local consumption. The ones reserved for local consumption, how did we manage it?”
Oil theft has become a main challenge in the petroleum industry in the last few years.
Orji said the anticipated 2021 report would also unfold how Nigeria responded to the Joint Venture Cash Call management.
He said the report would also examine the management of the petrol subsidy support, adding: “We want to establish the issues of our Joint Venture (JV). How did we respond to the issue of the JV Cash Call management issue?
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“How did we also manage the various funding arrangements? The Production Sharing Contract, the soul is the marginal field. These marginal fields where the transactions were taking place, how did it go? Was Nigeria put in good standing in terms of revenue sharing and revenue collections?
“We also want to know the taxes paid; how much of those taxes were remitted. And, again, what were the bases for the computation of the sale or the rate at which we sold our crude?
“We are also looking at Beneficial Owners: who owns what in the companies?
“We are looking at the transparency of the contract fees that were paid on the transactions, the process issues, fiscal issues, in terms of finance and then physical issues, to tell the quantity of crude produced, exported and consumed.
“There are other issues that Nigerians are interested in. We want to know how we managed our subsidy regime.”
The report, said Orji, would also establish why it had been difficult for firms operating in Nigeria to pay taxes.
The NEITI boss recalled that from the 1999 report, the agency unveiled the 77 companies that were indebted to the country to the tune of $6.8 billion.
He added: “Then, when we published our 2020 report and the amount fell by about 50 per cent. But about 51 companies were still liable.
“Our 2021 report needs to explain to us whether or not all the companies have complied.”