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Malawi to study NEITI implementation in Nigeria

A high ranking delegation from Malawi is expected to arrive Abuja this week on a study of Nigeria’s implementation of the Extractive Industries Transparency the Initiative (EITI).

While in Nigeria, the Malawian delegation will undertake a one week study of Nigeria’s implementation by NEITI, of the principles of the global Extractive Industries Transparency Initiative.

According to NEITI Director, Communications, Dr. Orji Ogbonnaya Orji, the study will examine how NEITI interventions through its reports and advocacy are supporting the on-going reforms in the country’s oil, gas and mining sectors, and how Malawi can benefit from this experience.

The delegation is to be received on arrival by the Executive Secretary Mr. Waziri Adio at the NEITI Secretariat Abuja.

Malawi has a population of about 18 million people and is in Southern Africa. It is rich in solid mineral resources such as uranium, coal and gemstones.

Malawi joined the global Extractive Industries Transparency Initiative on October 22, 2015, while Nigeria has been a founding member of the organisation since 2003.

While the implementation of EITI in Malawi is currently at its infancy as the country is yet to publish any EITI Reports, Nigeria is a ranking member and attained complaint status in 2012, won the best implementing country at the 6th global conference of the organisation held in Sydney, Australia in 2013, and has published several independent audit reports in oil and gas industry since 2004 . Nigeria has also published similar reports on solid minerals, fiscal allocation and resource disbursements.

Besides, Nigeria’s implementation of EITI is supported with a specific law, the NEITI Act of 2007.

Among the 54- member –country world body, Nigeria through the work of NEITI is largely seen as a model worthy of emulation.

While in Nigeria, the Malawian EITI team led by the Chairman of the country’s multi-stakeholders group Mr. Kulemeka Crispen Clemence is expected to seek exposure to NEITI processes,its mandates, challenges,and success stories in its operations as an agency. Other areas of interest to the team will include NEITI relations with its multi-stakeholders group like the civil society, the media, the extractive industry companies, government and other covered entities.

In this direction, the team is scheduled to meet with Dr. Kayode Fayemi, Minister of Mines and Steel Development and the Chair of National Stakeholders Working Group (NEITI Board).

February 2, 2017
NEITI seeks implementation of recommendations

Nigeria Extractive Industries Transparency Initiative (NEITI) has said it will focus more on ensuring broader multi-stakeholders collaboration to push for the implementation of the findings and recommendations in its independent audit reports on the oil, gas and mining sectors.

It also plans to automate the audit process to make its operations more efficient to support on-going reforms in the sectors.

Its Director of Communications, Orji Ogbonnaya, at the weekend, said the pending recommendations included the installation of meters to accurately measure quantity, privatisation of the refineries as well as the recovery of underpayments and understatements.

He explained that the automation was to transit NEITI from the regime of manual data collection to the digital era of collecting data through Information Technology (ICT). According to him, the automated process would make the data error-free by reducing human interface.

He said the whole idea was to see that the reports led to wider reforms that would produce visible results and impacts on the lives of the people.

Ogonnaya told The Nation on telephone that NEITI would be working under the guidance of the National Stakeholders’ Working Group to push for the implementation of ownership disclosures and its new open data policy. The open data policy, he said, was to make the data easy for use, understand and easily accessible.

According to him, the reforms in the Nigerian National Petroleum Corporation (NNPC), which was driven by the launch of the 7-Big Wins policy, including the unveiling of the Road Map for the Solid Minerals Sector were commendable efforts.

January 30, 2017
Amazing: Nigeria made N70tr from oil in 15 years, says NEITI scribe

The Executive Secretary of the Nigeria Extractive Industry Transparency Initiative, Mr. Waziri Adio, yesterday disclosed that the nation earned N70trillion from oil between 1999 and 2014.

He said 90 per cent of the corrupt practices in the country are probably being perpetrated in the oil sector.

But he said his agency was handicapped in dealing with oil firms and the cartels in the industry because the NEITI has no enforcement mandate.

Adio reeled out the figures to a stunned audience at the high-level seminar to commemorate the International Anti-Corruption Day 2016.

The theme of the seminar was: “Corruption: An impediment to the Sustainable Development Goal.”

The session was attended by the Chairman of the NEITI, Dr. Kayode Fayemi (who is also the Minister of Mines and Steel Development), the Acting Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Magu, representatives of UNODC, UNDP, E, the US Embassy and many civil society organizations.

But Adio’s disclosure of the huge revenue from oil in 15 years shocked the audience.

He said: “The oil and gas sector is a very strategic sector to our economy because this is where much of our revenue comes from. It is conceivable that 90 per cent of the corruption in the country is either happening in that or out of the proceeds of that sector.

“It is a sector that is so important; it is also a sector that is technical. Between 1999 and 2014, Nigeria earned about N70trillion from oil.”

He also confirmed that about $12.9billion was paid by the Nigeria Liquefied Natural Gas (NLNG) company to the Nigerian National Petroleum Corporation (NNPC), but it was not remitted into the Federation Account.

He added: “NLNG paid $12.9billion to NNPC. The oil company acknowledged receiving it, but did not remit it. We need citizens to ask questions. We can also ask: What can $12.9b buy?”

Adio, however, said the NEITI was handicapped because it has no enforcement power against oil firms or cartels shortchanging the nation.

He added: “We make recommendations; we cannot enforce. We identify people behind all these challenges in the oil sector; we cannot prosecute. We have to refer them to the EFCC.”

On his part, Dr. Fayemi said the administration of President Muhammadu Buhari is “running an anti-corruption agenda anchored on prevention; sanctions and enforcement; and recovery of proceeds of corruption.”

He said: “The debilitating effects of corruption cannot be over emphasized. It not only undermines development, but it is an enabler for other crimes and anomalies, thereby perpetuating a vicious cycle. It goes without saying that if we are to make significant progress on developmental issues, corruption must be reduced to the minimum.

“There is no denying the fact that our country has massive corruption problems. We must acknowledge, however, that we have not been idle in our bid to combat corruption. Efforts directed at fighting the monster in Nigeria are as old as the country itself.

“Nigeria has an array of legislations and institutions for fighting corruption. The institutions range from the police, the Code of Conduct Bureau, the Office of the Auditor General at the federal and state levels to the ones created in this millennium such as the EFCC, ICPC, Bureau of Public Procurement and the NEITI among several others. The frameworks and the legislations are there in the constitution as well as the enabling Acts of the various anti-corruption agencies.

“At the international level, Nigeria was one of the first countries to sign on to the United Nations Against Corruption (UNCAC) when the document was opened for signature in Merida, Mexico in 2003.

“Following that commitment, we have been diligently fulfilling our treaty obligations, including undergoing review in the second cycle.

“Our range of legislations and institutions show that we have significantly domesticated the provisions of global instruments in the area of prevention and criminalization as well recovery of proceeds of corruption.”

Fayemi, however, said the administration of President Buhari was already tackling corruption headlong without sacred cows.

He also said corruption prevention mechanisms are also being institutionalized.

He added: “The current administration is running an anti-corruption agenda anchored on prevention; sanctions and enforcement; and recovery of proceeds of corruption. The sanction and enforcement mechanism is ensuring that there are no sacred cows.

“For the first time in our history, perceived untouchables have been touched, and people are voluntarily returning illicitly acquired assets.

Several prevention mechanisms are also being institutionalized. We are now as a matter of routine assessing corruption risks in our institutions to reduce vulnerabilities likely to enable corruption and impede service delivery.

“In this activity, we have prioritized those ministries, departments and agencies whose mandates interface with the most critical of the sustainable development goals. Today, as part of this commemoration, we have released the report of Corruption Risk Assessment conducted in selected sectors in the ministries of education, health and water resources. These are sectors most critical to the wellbeing of citizens.

“To ensure transparency and accountability in managing our resources, the government is also promoting beneficial ownership disclosures with emphasis on the extractive sector.

“The NEITI is working to develop an appropriate roadmap for these disclosures in accordance with the EITI principles. To further promote transparency within the polity, the government has signed on to the Open Government Partnership and developed an action plan for implementation.”

December 10, 2016
NEITI: Federation Account dips by 30%

A new report by the Nigeria Extractive Industries Transparency Initiative (NEITI) has shown that disbursements from the Federation Account to the three tiers of government plunged by 30 per cent in the first half of this year when compared to the corresponding half of last year.

This sharp drop in revenues may negatively impact budget implementation across the three tiers of government this year, increase the size of budget deficits, and deepen the debt burden, NEITI warned.

This is contained in a report titled: FAAC Disbursements in First Half of 2016 and Possible Implications, released yesterday in Abuja. The report is the maiden issue of the NEITI Quarterly Review, a publication that will focus on issues around transparent and accountable management of revenues from the extractive sector.

Undertaken pursuant to Section 3(i) (j) of NEITI Act 2007, the report analysed disbursements by the Federation Accounts Allocation Committee (FAAC) in the first halves of last year and this year, and highlighted possible implications for public governance and management in the country.

According to the report, revenues shared to the three tiers of government were less by over N800billion from N2.89billion last year to N2.01billion this year. This 30 per cent decline reflected in lower allocations across the board.

The report stated: “Total disbursements to the Federal Government fell from N1.23 trillion in the first half of 2015 to N854 billion in the first half of 2016. This represents a 30.9 per cent decline. Total disbursements to states fell by 30.5 per cent from N1.009trillion in the first half of 2015 to N701billion in the first half of 2016. For local governments, allocations from FAAC (Federation Account Allocation Committee) dropped by 26 per cent from N580.63billion to N429.43billion.”

The reasons for the plunge in allocations, according to NEITI, include the drastic fall in oil prices, lower oil production due to the activities of Niger Delta militants, and lower non-oil revenues as a result of lower taxes arising from contraction in government spending, fall in consumption and investment expenditures and decline in economic activities.

Citing statistical data by the Central Bank of Nigeria (CBN) showing the gap between oil and non-oil revenues and analysis of oil prices and its correlation to FAAC disbursements, the report pointed out that “the dependence of governments at all tiers on the oil sector highlights the vulnerability of public revenue to global oil market developments.

“On average, statutory allocations constituted 86 per cent of total disbursements to the Federal Government in the first half of 2016. Statutory allocations make up 71 per cent of total disbursements to state governments and 67 per cent of disbursements to local governments. Thus, the Federal Government relies more on statutory allocations than the state or local governments”.

NEITI however explained that the reason for the greater exposure of the Federal Government on statutory allocations is because of the country’ s revenue sharing fomular: the Federal Government is allocated 52.68 per cent of statutory allocations while the states and local government areas receive 26.72 per cent and 20.60per cent respectively. This imbalance is however adjusted by the fact that the Federal Government receives only 15per cent of Value Added Tax (VAT), while states and local governamnet areas take 50 per cent and 35per cent respectively.

October 25, 2016
Senate panel wants NEITI to retain part of recovered revenues

•Agency canvasses new petroleum bill

THE Senate Committee on Petroleum Resources (Upstream) has made a case for the review of Nigerian Extractive Industries Transparency Initiative (NEITI) law to enable the agency retain a percentage of revenues recovered from the extractive companies.

Its chairman, Senator Omotayo Alasoadura, said this when he led his colleagues on an oversight visit to the NEITI Secretariat, Abuja.

He expressed satisfaction with the contributions of the watchdog organisation towards the on-going reforms of the nation’s extractive industries.

A statement from NEITI yesterday quoted Alasoadura as saying: “The Senate and Nigerians are happy with NEITI, given the courage and boldness the agency exhibits in the pursuance of its assignments over the years, resulting in the positive reforms that we have witnessed in the sector.”

The committee chairman reaffirmed the commitment of Senate to keep backing NEITI through improved budgetary provisions.

He described NEITI as a “special agency” of government deserving of special attention by way of adequate funding.

He explained that the issues raised by the NEITI Industry Audit reports were receiving the attention of senators and expressed dismay over poor funding of the agency.

As part of measures to address the funding challenges experienced by NEITI, the committee chair said the Senate might need to review the NEITI law to enable the agency retain a percentage of revenues recovered from the extractive companies.

NEITI Executive Secretary Mr. Waziri Adio identified the need for a new law for the petroleum sector as one priority area that the Senate needed to pay immediate attention.

He used the opportunity to present NEITI’s latest policy brief titled: “The Urgency of a new Petroleum Sector Law”, to the committee.

Adio said the urgency of a new petroleum sector law was the focus of the policy brief.

He informed the committee that the policy brief examined Nigeria’s challenges in enacting an over-arching law for the petroleum sector despite repeated attempts and the resultant huge negative economic implications and revenue losses.

Quoting from the policy brief, he said: “Nigeria’s Petroleum Bill is perhaps one of the most important bills ever to be contemplated in Nigeria’s history, yet the one that has taken the most time and generated the most activity without legislation.”

He noted that Nigeria might have lost about $200 billion as a result of the absence of a new law in the petroleum sector.

He advised that a piecemeal rather than an omnibus approach to the passage of the law be adopted, and underlined the need for the law to have robust transparency, accountability and efficiency measures.

Adio said as an agency saddled with the responsibility of ensuring transparency and accountability in the extractive industries, NEITI has a legitimate interest in the bill.

He urged the Senate to work with the relevant stakeholders to ensure that a new petroleum law is prioritised, enacted and used as one of the strategies for economic recovery.

The executive secretary informed the committee that NEITI was confronted with serious financial challenges capable of hampering its core mandate and appealed to members to do everything within their powers to rescue the agency.

He hailed the Senate for the opportunity provided to NEITI to brief the Upper House on the findings of its 2013 oil, gas and solid minerals audit reports.

October 11, 2016
Senate panel asks NEITI to retain part of recovered cash

THE Senate Committee on Petroleum Resources (Upstream) has called for a review of Nigerian Extractive Industries Transparency Initiative (NEITI) law to enable the agency retain a percentage of revenue recovered from extractive companies.

Its Chairman, Senator Omotayo Alasoadura, spoke when he led colleagues on an oversight visit to the NEITI Secretariat, Abuja.

He hailed NEITI on reforms in the extractive industries.

A statement from NEITI yesterday quoted Alasoadura as saying: “The Senate and Nigerians are happy with NEITI, given the courage and boldness the agency exhibits in its assignments, resulting in the reforms we have witnessed in the sector.”

NEITI’s Executive Secretary Waziri Adio identified the need for a new law in the petroleum sector as one area the Senate needed to pay attention.

He presented NEITI’s latest policy brief, titled: “The Urgency of a new Petroleum Sector Law”, to the committee.

Adio said the urgency of a new petroleum sector law was the focus of the brief.

Quoting from the policy brief, he said: “Nigeria’s Petroleum Bill is perhaps one of the most important bills ever to be contemplated in Nigeria’s history, yet the one that has taken the most time and generated the most activity without legislation.”

October 11, 2016
NEITI, EFCC partner to enforce accountability

The Nigeria Extractive Industries Transparency Initiative (NEITI) is to sign a pact with the Economic and Financial Crimes Commission (EFCC) to enforce accountability in the extractive sector.

NEITI’s Director of Communications Dr Orji Ogbonnaya Orji said this yesterday in Lagos.

He was speaking at a capacity-building training for 25 media personnel, sponsored by the Natural Resource Governance Institute at the Pan-Atlantic University in Ibeju Lekki.

Orji said NEITI was interfacing with the EFCC and other anti-graft agencies to prosecute economic offenders in the extractive sector.

“We have gone to borrow teeth from the EFCC so that we can bite companies found wanting in accountability and transparency,’’ he said.

Orji said NEITI’s management and the EFCC were fashioning out a memorandum of understanding on the modalities for a smooth relationship.

The NEITI chief said to ensure accountability and transparency in the oil and gas sector, NEITI should partner anti-graft bodies to track funds accruing to government.

“To ensure that anyone found guilty of misappropriating the country’s oil revenue is prosecuted, NEITI is partnering EFCC to study audit reports of companies to identify areas where financial crimes have been committed.

“The extractive industry remains the backbone of the economy, which necessitates NEITI’s efforts toward ensuring accountability and transparency in the sector.’’

He restated that in the 2013 audit report of the extractive sector, the Federal Government’s total revenue flows to the federation account stood at $58.07 billion while its revenue losses stood at $3.8 billion.

Orji said 41 oil and gas companies and 16 government agencies were involved in the 2013 audit report.

July 6, 2016
NEITI seeks greater media partnership

The Nigeria Extractive Industries Transparency Initiative (NEITI) has renewed its appeal to the media to support its commitment to end corruption, impunity and mismanagement of oil, gas and mining revenues.

Its Executive Secretary, Mr. Waziri Adio, made the appeal when he visited The Nation.

He said NEITI’s mandate consistent with that of the media as watchdogs of the society.

Adio underlined the role of the media in public education, enlightenment and social mobilisation, identifying dissemination of NEITI industry audit reports as an area the support of the media is indispensable

He said: “NEITI exists to ameliorate and reduce the resource curse syndrome in Nigeria. The EITI approach to reversing the resource curse dwells on management of natural resources for the benefit of the people through the use of transparency and accountability tools. We need the media to help use the information and data disclosed by NEITI to shape public debate required to sensitise the citizens to ask informed questions on the management of natural resource revenues. We also need to empower the citizens and other accountability actors to appreciate their roles and the press to help set this agenda. The end goal is that abundant resources should transform to better living standards for the people.

According to him, until NEITI Reports lead to reforms in the extractive sector, sanction infractions and bring about improved quality of life for the citizens, the job of NEITI is far from done.

Adio said: “As leaders, we should model the values we preach and walk the talk. There must be consequences for bad behavior and this can be reenforced by the Media.”

June 30, 2016
Oil sector rot: EFCC ‘ll bite if you want, commission chair tells NEITI boss

The Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Magu, said the agency will probe the rot in the oil sector, if the Nigeria Extractive Industries Transparency Initiative (NEITI) wants it to do so.

He said the agency might prosecute Bureau De Change operators who were used to loot the treasury.

He also said the EFCC would soon be going after accounting firms that collaborate with bankers to steal government funds

Magu spoke at separate sessions with the Executive Secretary of the NEITI, Mr. Waziri Adio, and at a workshop for professionals in Abuja.

He assured the NEITI team that the commission was prepared to give a quick response in areas of need and to improve on the existing relationship between the two agencies.

“Where you want us to use our teeth to bite, we would readily do so”, he said.

Speaking at a workshop on the “Role of Professionals in the Fight Against Corruption” at the Rockview Hotel, Abuja yesterday, he asked Bureaux de Change and financial institutions to desist from being used as conduits to launder money.

He said: “Instead of conniving with people to launder the proceeds of corruption, I beg you to join hands with the EFCC to fight corruption.

“Many professionals celebrate criminality by doing a lot to foster corruption, which adds more to money laundering. I don’t intend to criticize the work of professionals, but to solicit their support in order to make Nigeria better for the younger generation.

“BDCs move billions of Naira in a day and there is no proper documentation of money laundered. I appeal to the BDCs to stop that, as we will begin to prosecute Bureau de Change operators to serve as deterrent. Bankers are also involved in corrupt acts, as they don’t carry out due diligence.’’

He also said the commission would soon be going after accounting firms that collaborate with bankers to steal government funds.

He added: ‘‘People are now scared of keeping money in banks, as it can be traced easily. Money is now kept in abandoned houses in the country.’’

On his part, the NEITI Executive Secretary said the Nigerian National Petroleum Corporation(NNPC)

had withheld another $12.9billion revenue.

He said the revenue came from the Nigeria Liquefied Natural Gas between 2005 and 2013.

He said some infractions had been committed which require the prosecution of the masterminds by anti-graft agencies.

According to a statement by the Head of Media and Publicity of the EFCC, Mr. Wilson Uwujaren, the NEITI Executive Secretary spoke on the stench in the oil sector when he visited the EFCC chairman.

He said NEITI might report serious infractions to the anti-graft commission.

He said: “The 2013 Oil and Gas Audit Report revealed that some government agencies like the NNPC and its subsidiaries withheld $3.8billion and N358billion.

“Another revelation is that $12.9 billion was withheld by the NNPC from NLNG between 2005 and 2013.”

He expressed the readiness of his agency to collaborate with the EFCC in tackling corruption by reporting serious infractions that violate the country’s constitution.

“We have an Act that criminalizes certain behaviour. If people do not cooperate with us, if people do not give us information on time, they are liable to be prosecuted, fined and jailed.

“But, we have existed for 12 to 13 years and nobody has ever been tried under our Act and that is not to say some infractions would not have occurred.”

He said a major challenge confronting the NEITI is the lack of power to prosecute.

He said NEITI only carries out audit.

“There are a lot of findings that have come up over time about money missing, about collusion between operators and government agencies, about possibility of money laundering, about all kinds of economic crimes that we are not in a position to push forward”, Adio said.

He said deepening relationship with the EFCC would help send signals to all the agencies and companies that relate with the NEITI to cooperate with it.

June 18, 2016
NNPC withholds another $12.9b in eight years – NEITI

The Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Mr. Waziri Adio, on Friday said the Nigerian National Petroleum Corporation(NNPC) has withheld another $12.9billion revenue.

He said the revenue came from the Nigeria Liquefied Natural Gas between 2005 and 2013.

He said some infractions have been committed which require the prosecution of the masterminds by anti-graft agencies.

But the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Magu, said the agency will bite if NEITI wants it to do so.

According to a statement issued by the Head of Media and Publicity of EFCC, Mr. Wilson Uwujaren, the NEITI Executive Secretary spoke on the stench in the oil sector when he visited the EFCC chairman.

He said NEITI might report serious infractions to the EFCC.

He said: “The 2013 Oil and Gas Audit Report revealed that some government agencies like NNPC and its subsidiaries withheld $3.8billion and N358billion.

“Another revelation is that $12.9 billion was withheld by NNPC from NLNG between 2005 and 2013.”

He expressed the readiness of his agency to collaborate with the EFCC in tackling corruption by reporting serious infractions that violate the country’s constitution.

“We have an Act that criminalise certain behaviours. If people do not cooperate with us, if people do not give us information on time, they are liable to be prosecuted, fined and jailed.

“But, we have existed for 12 to 13 years and nobody has ever been tried under our Act and that is not to say some infractions would not have occurred.”

He said a major challenge confronting NEITI is the lack of power to prosecute.

He said NEITI only carries out audit.

“There are a lot of findings that have come up over time about monies missing, about collusion between operators and government agencies, about possibility of money laundering, about all kinds of economic crimes that we are not in a position to push forward,” Adio said.

He said deepening relationship with EFCC would help send signals to all the agencies and companies that relate with NEITI to cooperate with it.

Responding, Magu, assured the delegation that the commission was prepared to give a quick response in areas of need and to improve on the existing relationship between the two agencies.

“Where you want us to use our teeth to bite, we would readily do so,” Magu added.

June 17, 2016