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Tag: EITI

  • EITI kicks against amendment of NEITI Act

    EITI kicks against amendment of NEITI Act

    • …says Nigeria needs to comply with existing law before repea

    The global extractive industries transparency body, Extractive Industries Transparency Initiative (EITI) at the weekend kicked against the amendment of the Nigeria Extractive Industries Transparency Initiative (NEITI) 2007 Act, noting that the country has to first of all comply with the existing legislature before repealing it.

    According to EITI, Nigeria has not been complying with the implementation of the law.

    Its major grouse is the frequent dissolution of the National Stakeholders Working Group (NSWG), which is the board of NEITI.

    It was dissolved alongside other boards in June last year, despite the mandatory oversight it should have on the operation of NEITI.

    Speaking on the outcome of the EITI delegation to Nigeria at the weekend, the Deputy Executive Director, Mr. Bady Balde, said, “Nigeria is already in breach of that requirement because you want to cover present relevant issues now.”

    Owing to that breach, he said, “In our discussions with all stakeholders from government officials all the way to the members of the National Assembly and so on, it is that first and foremost the NEITI Act should be complied with. Before you change the law, you have to comply with the law. And right now, we are not adhering to the law. So, we need to make sure we adhere to the law.”

    He admitted that a law can be amended to address its imperfections, but it has to be done thoroughly with time.

    He recalled that Nigeria was at the forefront when it signed into the EITI law, but other countries have taken over it, with Nigeria now playing the catch-up.

    Read Also: Transparency: EITI Rates NNPCL high in compliance

    Pledging to assist Nigeria, he added that: “We look forward to working with you here to share examples of good practices we see elsewhere to help address the imperfection of the law and to help it clarify its mission and help fulfill its mission.

    “But I cannot emphasise this enough, don’t change the law if you cannot adhere to the law. You have to adhere to the law.

    He however revealed that the delegation received a very strong commitment concerning the reconstitution of the NSWG from the Secretary to the Government of the Federation (SGF), Senator George Akume.

    According to him, Akume promised to recompose a board in a transparent and inclusive manner, and in line with international best practices.

    Continuing, he said the Office of the SGF ” also assured us that they will take care to make sure that the relevant stakeholders are represented there with due consideration of their technical capacity and expertise.

     “This is because in order for that entity to function correctly, they have to have the adequate representation.”

  • EITI urges NNPCL to clarify 20% equity in Dangote Refinery

    EITI urges NNPCL to clarify 20% equity in Dangote Refinery

    The Extractive Industries Transparency Initiative (EITI), yesterday called on the Nigerian National Petroleum Company Limited (NNPCL) to open up on its investment of 20per cent equity in Dangote Petroleum Refinery.

    The international watchdog organization on extractive industries transparency and accountability made the call during EITI delegation visit to Nigeria.

     Briefing reporters in Nigeria Extractive Industries Transparency Initiative (NEITI), Abuja, EITI Technical Director, Alex Gordy said NNPCL is yet to clarify the equity interest in the refinery.

    He called on the state-owned company to state the valuation of the equity in the Dangote Refinery for the purpose of accountability.

    Makore said: “The question of Dangote Refinery: NNPCL has acquired 20per cent equity interest in the Dangote Refinery.

    “However, it has not explained: What is the valuation of the equity interest in the Dangote Refinery. So the key factor here is accountability.”

    Continuing, the Technical Director asked NNPCL to reveal the equity mode of payment.

    He said all that is in the public domain is that NNPC will pay for the equity acquisition with crude oil deliveries.

    Gordy further raised question about how the crude oil supply and consistent deduction will be valued at market rates.

    He also wondered whether the deduction will be from the Federal Government revenue or NNPCL oil production.

    His words: “How is it supposed to be paid?  For we know at this point it is to be paid from future oil deliveries. But how would that be valued at market rates and the different rates with those supplies of petroleum from NNPC and consistent deductions from the Federal Government revenues? Or will it be from NNPC oil production?”

    Besides, he also raised questions about the $3.8billion loan deal between NNPCL and the Afrexim Bank.

    He urged NNPC to explain the interest rate of the loan and the mode of repayment.

    The Technical Director sought the oil company’s explanations on whether the repayment will be at the prevailing market conditions.

    Read Also: Tiers of govt share N1.1tr from Federation Account revenue

    Gordy said: “But also on the other Afrexim Bank loans, most recently, we’ve seen in the press a $3.8 billion loan from Afrexim Bank and, again, the question is at what valuation?  What interest rates and the modalities of repayments?”

    According to him, the fundamental objective of the disclosures is to inform the public on whether that is a fair deal for the government.

     Earlier, the Deputy Executive Director, Bady Balde, said the delegation was in Nigeria mostly because of the outcome of the recent validation of the country’s extractive industry.

    He said the validation was not question of pass or fail, but a quality assessment that measures progress.

    Balde however noted that the absence of a consistent NEITI board – National Stakeholders Working Group (NSWG), has been a major drawback to the country, especially in terms of validation assessment.

    He noted that unfortunately that entity has not functioned as it is intended in the past three years or so.

    He added that NEITI stakeholder is at the core of the EITI process.

    He said as EITI has transparency in its name, NEITI ought to have lived up to its name by having the board in place consistently.

    “The vacancy was the issue of concern that led to this mission,” he said.

    According to him, NEITI data is meaningless without stakeholders’ engagement.

    Balde however noted that there is a lot to celebrate from this report because of the way NEITI has established itself as a mechanism for transparency.

    Extolling NEITI, he said “we are really proud the way this organization has evolved to its key mandate.”

  • EITI extols Nigeria over implementation of standard

    EITI extols Nigeria over implementation of standard

    The Extractive Industries and Transparency Initiative (EITI), a global body which promotes public awareness about how countries manage oil, gas and mineral resources have lauded Nigeria as one of the first countries to implement its standards.

    EITI Country Manager, Alex Gordy, who led his team to the NNPC Wednesday, stated that out of about fifty one (51) countries, Nigeria was key in shaping the global EITI development.

    He expressed happiness that Nigeria has expanded the scope of its implementation of the EITI standards, across the entire value chain of the oil and gas industry as exemplified by the organisation’s Nigerian arm, NEITI.

    Group General Manager, Group Public Affairs Division, Mallam Garba Deen Muhammad disclosed this in a statement yesterday.

    He stated that Nigeria last underwent EITI validation in 2010 and that the new validation exercise has recently commenced.

    The EITI validation exercise is done in order to assess whether a country is or is not compliant with EITI Principles and Criteria. These include commitment to implement EITI standards; commitment to work with civil society and the private sector; having individuals that lead implementation; and a work plan agreed with stakeholders.

    Earlier in his speech, the Group Managing Director of the NNPC, Dr. Maikanti Kachalla Baru stated that the NNPC remains committed towards full compliance with the standards required by the NEITI.

    “We have been interacting a lot with NEITI and in those engagements, we have been very cooperative in providing the necessary information. We will always remain committed towards implementing NEITI’s good standards,” Dr. Baru stated.”

  • Transparency would have prevented current challenges – Osinbajo

    Transparency would have prevented current challenges – Osinbajo

    Vice President Yemi Osinbajo on Monday said Nigeria would not have found itself in this present situation if it had handled its resources better, with transparency and good governance.

    He made the remark during a meeting with a delegation of the Extractive Industries Transparency Initiative, (EITI), at the Presidential Villa, Abuja.

    The Minister of State for Budget and Planning, Mrs. Zainab Ahmed, the former Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), was also in attendance.

    Osinbajo, in a statement by his Senior Special Assistant on Media and Publicity, Laolu Akande, stressed that it was important for Nigerians to handle the country’s resources with transparency and good governance.

    According to him, a critical pillar of President Muhammad Buhari’s presidency is transparency, especially in the extractive industry.

    He said: “One of the objectives that we have set for ourselves is to ensure that we are transparent and able to handle our resources well.”

    “If we (as a nation) had handled our resources better, with transparency, and good governance, we would not find ourselves where we are now.”

    He said that as a nation, “we have learnt our lesson,” declaring that going forward the government will work transparently and generate more revenues.

    Osinbajo said as a government, the Buhari administration was determined to work with NEITI “to ensure good governance and look at how we can generate revenues and keep proper accounts.”

    On Petroleum Industry Bill (PIB), he assured that government is working with the National Assembly to get the PIB passed into law.

     

     

  • EITI endorses Buhari’s anti-graft war

    The board of the Extractive Industries Transparency Initiative (EITI) has endorsed the ongoing anti-corruption campaign of President Muhammadu Buhari’s administration.

    EITI, a global body monitoring transparency in the extractive industries, is now headed by former Swedish Prime Minister, Fredrick Rayfield, who is expected to over from Clair Short  very soon.

    The duo and other board members of EITI will visit Nigeria on February 8 to convey the body’s endorsement of the anti-corruption campaign to President Buhari.

    The Acting Executive Secretary of the body, Dr. Orji Ogbonnaya Orji, who stated this to journalists in Abuja, Friday, said the team will interact with the National Assembly, media and others.

    He said, “In recognition of all that is going on in government in Nigeria and the focus of government on anti-corruption, the EITI International chair has offered to visit Nigeria.

    “The outgoing chair, Clair Short, who has served our global organization in the last four and the new chair, Fredrick Rayfield, a former Swedish prime minister, are expected to visit Nigeria on February 8. The Presidency has approved that visit.

    “The purpose of the visit is to convey the endorsement of the EITI to the courageous war against corruption that is ongoing in Nigeria.”

     

  • Nigeria: EITI seeks ‘quick’ reforms in oil and gas sector

    The Chairperson of the Extractive Industries Transparency Initiative (EITI), Mrs. Claire Short, has urged the Federal Government to immediately commence implementation of needed reforms in the country’s oil and gas sector.

    She made the call while speaking with State House correspondents after a closed door meeting with Vice President Yemi Osinbajo at the Defense House, Abuja,

    Accompanied by officials of the Nigeria Extractive Industries Transparency Initiative (NEITI) she lamented the non implementation of some advocated oil sector reforms in Nigeria over the years.

    To this end, she urged the government to, as a matter of urgency, commence the implementation of the suggestions proffered in the various audit reports on the sector by NEITI.

    The visit, she said, was mainly to further push for the reforms with a new government in place in Nigeria and to synergize with the government to ensure transparency in the extractive sector.

    She also frowned at serial corrupt practices within Nigeria’s oil sector, but expressed optimism that the present government would implement some of the suggested reforms in the sector.

    According to Short, it was her organization’s duty to ensure compliance of agreement by EITI’S member states to maintain transparency.

    Chairman of NEITI, Mitee Ledun, said the sector has suffered setback and loss of several billions of naira accrued to the federation over the years due to lack of political will to implement findings and recommendations of its audit reports.

     

  • EITI chair to meet Buhari on NEITI report

    EITI chair to meet Buhari on NEITI report

    The Chair of the global Extractive Industries Transparency Initiative (EITI), Clare Short, will arrive in Nigeria today on a tree-day working visit.

    While in Nigeria, the EITI chief is expected to hold consultations with President Muhammadu Buhari on the implementation of reports of the Nigeria Extractive Industries Transparency Initiative (NEITI) as well as the proposed reforms in the oil, gas and mining sectors.

    The meeting is also expected to provide the international chair the opportunity to brief the president on the importance of integrating the EITI principles in his economic policy agenda as obtainable in resource rich countries globally.

    NEITI Director of Communications Dr. Orji Ogbonnaya Orji said this in a statement yesterday.

    According to the statement, the visit of Short to Nigeria is seen as a global endorsement of Buhari’s commitment to good governance, transparency and accountability, which are consistent with EITI principles.

    The statement noted that the President had listed the implementation of the findings and recommendations of NEITI Audit Reports as a priority within his administration’s 100 days in office.

    NEITI reports have publicly disclosed several cases of mismanagement, underpayment of taxes, royalties, under-assessment and other lapses resulting in billions of dollars revenue loss to the Federation.

     

  • NEITI to expose oil blocs’ owners

    NEITI to expose oil blocs’ owners

    The global Extractive Industries Transparency Initiative (EITI) has unveiled its revised standards which compel the Nigerian Extractive Industries Transparency Initiative (NEITI) to disclose the names of oil blocs’ owners.

    The NEITI chairman, Mr. Ledum  Mitee, who made this disclosure at the capacity building workshop for civil society organizations in Abuja on Thursday, said the new standards also require improved reliability of data on the part of state-owned companies and other government entities on revenue collected on behalf of the government.

    He explained that the new standards focus on expenditure on social services, public infrastructure and fuel subsidy payments.

    Mitee added that the revised standards encourage contract transparency in companies and government.

    On disclosure of oil bloc ownership, he said, “Thus, the revised EITI standards require, for instance, disclosure of production figure, disclosure of ownership of the license holders (disclosure of beneficiary ownership.”

    He explained that as ground breaking as the new standards are, it is refreshing to note that NEITI audit processes already capture several aspects of the revised standards.

     

  • Jonathan seeks EITI’s help on oil theft

    Jonathan seeks EITI’s help on oil theft

    President Goodluck Jonathan on Monday urged the Extractive Industries Transparency Initiative (EITI) to do more to support the Federal Government’s efforts aimed at checking oil theft in the country.

    He made the call while speaking with the Chairperson of EITI, Ms. Claire Short, at the Presidential Villa, Abuja.

    Stressing that the stolen oil business involves the collusion of foreigners, he urged EITI to identify and punish refineries that receive stolen crude oil from Nigeria.

    In a statement issued by his Special Adviser on Media and Publicity, Dr. Reuben Abati, the President said, “The efforts of EITI in criminalizing ‘blood diamonds’ from African mines have helped in curtailing that illegal business. I urge you to also support Nigeria as we confront the forces stealing Nigerian crude oil.

    “The theft of crude oil from Nigeria involves the collusion of foreigners and the stolen crude is refined abroad. EITI can use its mechanisms to help us track down the thieves and those who receive the stolen crude oil,” he said.

    Noting that Africa was losing a lot through leakages in the mining and extractive industry, Jonathan also urged Ms. Short and her colleagues at EITI to help in ending the exploitation of Africans and African nations by multinational companies engaged in the extraction of the continent’s immense natural resources.

    Jonathan said that in keeping with the Federal Government’s commitment to giving the Nigerian Extractive Industries Transparency Initiative (NEITI) all necessary support and freedom to discharge its duties, he will inaugurate an expanded inter-ministerial committee next week to ensure greater synergy in NEITI’s investigations and facilitate the implementation of its recommendations for greater probity in Nigeria’s oil industry.

    Commending EITI’s efforts to discourage exploitation and corruption in extractive industries across the world, Jonathan assured Ms. Short and her team that Nigeria will continue to strive for even greater openness and transparency in its oil and mining sectors.

    Ms. Short briefed President Jonathan on EITI’s ongoing efforts to ensure that oil and other mineral resources of countries are well managed and utilized for the benefit of their citizens.