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Tag: NEITI

  • EFCC constitutes task force on NEITI report

    The Economic and Financial Crimes Commission (EFCC) on Friday  set up a joint task force on the recently released audit reports of the Nigeria Extractive Industries Transparency Initiative (NEITI).

    Membership of the task force is drawn from NEITI and the EFCC.

    The task force is to study the reports and identify areas where financial crimes have been committed against the nation.

    According to a statement issued by NEITI’s Director of Communications, Dr. Orji Ogbonnaya Orji, the Chairman of the EFCC, Ibrahim Magu, made the decision in Abuja after receiving copies of the reports from the NEITI Executive Secretary, Waziri Adio.

    The statement noted that Magu said  it is no longer acceptable for NEITI to publish reports and agencies, companies and individuals that had clearly committed financial crimes as disclosed by the reports are left to go without sanctions.

    “I have heard people say that NEITI has no teeth to bite, but today I assure you that by our renewed joint collaboration, the EFCC will provide NEITI with the required teeth to bite.”

    The EFCC chairman advised members of the task force to carry out the assignments with utmost diligence by developing an action plan and make recommendations for immediate action by the commission.

    Presenting the report, the NEITI Executive Secretary lamented that while NEITI has been churning out series of reports since 2004, it is regrettable that no one has either been tried or convicted for infractions on the NEITI Act.

    He called on the EFCC to step in and help NEITI enforce required sanctions.

     

  • Senate sets up panel on NNPC’s unremitted N1tr

    Senate sets up panel on NNPC’s unremitted N1tr

    • NEITI: oil production figure unknown

    The Senate yesterday resolved to set up a nine-man ad-hoc committee to consider the statutory report of the Nigerian Extractive Industry Transparency Initiative (NEITI).

    The upper chamber took the decision after a session with the Executive Secretary of NEITI, Mr. Waziri Adio in Abuja.

    The Senate had invited Adio to throw more light on the 2013 audit report of NEITI he submitted to it.

    Before constituting the committee, Senate President, Abubaka Bukola Saraki said based on the fact that the report cut across many standing committees and in view of the enormity issues involved, the consensus is that the Senate should set up ad hoc committee with the responsibility of addressing all the issues.

    Saraki said the terms of reference of the committee included re-examining the financial processes and the fiscal audit report of the NEITI and the financial loss and leakages to government in all its ramifications.

    He added that the panel should also look at remedial measures and sanctions where necessary, “and of course, more importantly any relevant legislative action that would be required to block all forms of leakages.”

    Saraki, named Chairman, Senate Committee on Petroleum (Downstream) Senator Jibrin Barau as chairman of the ad-hoc committee.

    Other members of the committee included Chairman, Senate Committee on Public Account Senator Andy Ubah, Chairman Senate Committee on Petroleum (Upstream) Tayo Alasoadura, Chairman Senate Committee on Gas, Senator Bassey Akpan, Chairman Anti-Corruption, Senator Chukwuka Utazi, Chairman, Senate Committee on Finance, Senator John Owan Enoh, Senators Kabiru Marafa, Bukka Mustapha, and Solomon Adeola.

    The Committee was given four weeks to conclude its assignment and report back to the Senate in plenary.

    Adio in his presentation said the audit report is published every year because NEITI has a mandate to promote accountability and transparency in the management of resources from oil, gas and mining.

    The NEITI boss noted that though the country is aware of its oil and gas export, “we cannot say scientifically what we produce.

    He blamed this on lack of metering in the oil and gas sector.

    He noted that in 2013 the country produced 800.3 million barrels and out of which the country made $58.07 billion which represented eigh per cent reduction on the $62.9 billion the country made in 2012.

    He noted that there are some monies that were withheld, lost or underpaid for different reasons.

    He said: “These monies are in three tranches. The first is in the category of the unremitted, and the unremitted amounted to $3.8 billion and N358 million.

  • Senate invites NEITI boss over audit report

    Senate invites NEITI boss over audit report

    The Senate Thursday resolved to invite the Executive Secretary of the Nigeria Extractive Industry Transparency Initiative, (NEITI), Mr. Waziri Adio, to brief it on the content of 2013 Audit report of the agency.

    The resolution followed a motion on “the urgent need for the Senate to look into the NEITI 2013 oil, gas and solid mineral audit report” sponsored by Senator Tijjani Yahaya Kaura (Zamfara North).

    Senator Kaura in his lead debate noted that one of the key statutory functions of NEITI is to conduct regular audit of the extractive sector as provided in Section 4 of the Extractive Act.

    He noted that details of the report showed that the country made $58.07 billion from its hydrocarbon industry in 2013 while the sum of N33.86 billion was realized from solid mineral sector in the same year.

    The lawmaker said that the report also indicated that the sum of $3.8billion and N358.3 billion stood as outstanding revenue from the Nigeria National Petroleum Corporation and its subsidiaries in 2013.

    The outstanding payments, he said, were due to unpaid consideration from divested Oil Mining Lease from NNPC and NPDC and cash call refunds by the National Petroleum Investment and Management Services (NAPIMS).

    He said that it is worrisome that between 2005 and 2013 the sum of $12.9 billion paid by the Nigerian Liquefied Natural Gas (NLNG) to NNPC was not remitted to the Federation account.

    The report showed that the country lost $5.966 billion and N20.4 billion in the sector from the operation of Offshore Processing Agreements (OPA) by state oil firm, the NNPC and crude oil swap and theft.

    He noted that the report also showed that the sum of $99.98 million was reported as underpayment to the Federation from petroleum profit tax and royalties by oil and gas companies, as a result of the use of different pricing methodology by the government

    He prayed the Senate to invite the Executive Secretary of NEITI to brief the Senate on the missing funds and the cause of the leakage.

    The prayer was unanimously adopted.

    Senate President, Abubakar Bukola Saraki who summed up debate said that the country lost over N1 trillion in the extractive sector in 2013.

    Saraki who insisted that the matter should be debated noted that if the 2016 budget of the country is N6 trillion, N1 trillion could not be lost in one sector without the Senate finding out what happened.

    The Senate President had said while receiving the report: “I agree with you entirely that this type of opportunity also enables us to strengthen the institutions such as yours that have the responsibility of improving the governance and transparency administration of the management of our resources.

    “In preparation for this courtesy call, I studied the report in the early hours of this morning, and honestly I was just dumbfounded about the figures that we are talking about.

    “This is just 2013, one year’s report. It is not cumulative. In one year’s audit report you are talking about figures of over $3.8billion at that time I am sure the rate was close to N150 per dollar. So you are talking about N650billion. Then you are talking about another N358billion which brings it close to about N1trillion.

    “Then you are talking about assets that were undervalued and transferred to NPDC but still no payment was made. You are talking about NAPIMS paying cash calls for an asset that doesn’t belong anymore to NNPC and you truly wonder that this is going on right under our nose here in this country.

    “Honestly, I just concluded that as a country I don’t think we are serious. We are just paying lip service to this issue of fighting corruption because this is the real terminology of economic sabotage.

    “This is what I believe agencies that are truly fighting corruption should have taken up. Meanwhile you see them sometimes chasing a Local Government Chairman for N10million or chasing even the State Governments for less amounts.

    “These are just astronomical figures and nobody is being asked where the authority came from. Even if you say it was a minister, do we have where managements of those organizations have been able to say this is not what should be done?

    “There are people who are responsible in management to advise on what should be done. And these people am sure are just walking the streets up and down without anybody asking them any question. It is incredible.

    “Honestly, we must begin to do something about this because unless we do that we are just wasting our time. We are just chasing areas that maybe catch news headlines but they don’t have any effect.

    “So to me and on our own part in this Senate, what I am going to assure you is that apart from getting the report, I have already told my office ‘let’s get the report, we circulate it to all members of the Senate’ and I promise you we are going to have a plenary session on it. And the day we are going to have it, it is going to be live on television. Let us discuss it. It is serious!

    “I mean look at the figures they are talking about?  And like you rightly said, you will just publish it and it will go and nobody will say anything about it? What is the ICPC doing? What is the EFCC doing? This is what is killing this country.

    “But I can assure you that under this 8th Senate, these types of reports are not going to die without anybody doing something about it. We will shout until something is done because there must be responsibility of those who are professionals that should advise political leaders of these positions.”

     

  • Why we ’re yet to release 2013 audit reports, by NEITI boss

    Why we ’re yet to release 2013 audit reports, by NEITI boss

    The Nigerian Extractive Industries  Transparency Initiative (NEITI) has explained that its new board that was appointed in February has to first study and comprehend the 2013 oil, gas and solid minerals audit reports before approving their release.

    Its Executive Secretary, Dr. Waziri Adio, made this known when he led a delegation of the watchdog organisation on a familiarisation tour to The Nation’s Abuja Bureau office.

    He said the board has formed its own technical committee, which has reviewed the report to almost the final stage. Adio added that it is set for presentation to the public in the next few weeks.

    According to him, auditors prepared the reports since the ending of last year, but the board was not in place to approve it for presentation.

    In Adio’s delegation were NEITI Director of Communications Dr. Orji Ogbonnaya Orji, Head, Technical Unit on Governance & Anti-Corruption Reforms (TUGAR) Lillian Ekeanyanwu and Media Officer Mr. Chris Ochunu.

    He said: “The 2013 Oil and Gas report and the 2013 Solid Minerals reports were ready as at the end of 2015, but there is a process for releasing the reports. The board has to be in place and the board has to approve the release. In February, Mr. President graciously appointed the board of NEITI.

    “This board took over in February and these are people that are new to the issues. So, one of the things we have done is to do an induction for the board. You know this is a technical area, and it is unfair to ask people to approve what they don’t understand.

    “So, the first thing that the board did is to say let us understand these issues. Let us invite the auditors and let them present the reports to us. That is the second thing.”

  • NEITI boss declares N99.4m assets

    NEITI boss declares N99.4m assets

    Nigeria Extractive Industries Transparency Initiative (NEITI) Executive Secretary  Mr. Waziri Adio yesterday declared his assets with N3.8 million and $821in his accounts.

    But his assets and that of his spouse are worth N99,417,894.

    He said he closed his foreign accounts, which he operated as a student or a fellow in the United States.

     Adio, in a statement on his Assets Declaration Form, said he opted for a public declaration of his assets to practise what he preaches.

     He said he believes that “public officers should declare their assets publicly”.

     The  statement said: “After 23 years of working in the media, in an international development agency, and as a consultant and an entrepreneur, I own the following assets declared in my Form CCB 1:

    “As at March 30, 2016, I had a total of N3, 810, 206 in accounts with Access Bank, Standard Chartered Bank and United Bank for Africa.

    • As at March 30, 2016, I had a total of $821 in domiciliary accounts in Access Bank and UBA.

    “The foreign accounts I operated as a student or a fellow in the U.S. are all closed.

    “One unit of a three-bedrooom bungalow in an estate in a suburb of Abuja bought in 2011 at N17.5million, renovated and currently valued at N25 million;

    “Two units of three-bedroom flats built over 13 years (between 2000 and 2013) in Lambe, Ogun State, currently valued at N12 million.

    “Two plots together measuring 1000 sqm demarcated by a dwarf fence in Iwo, my hometown in Osun State, bought in 2013, valued at N700, 000;

    “Yet-to-be-located 600 sqm in a disputed estate in Sabon-Lugbe, Abuja bought in 2011 at N750, 000.

     ”I have beneficial interests in the following private companies that I co-founded: Think Tank Consult Limited; SW4 Media Limited, Publishers of Metropole Magazine; Elan-Metro Foods Limited and the Cable Newspaper Limited, Publishers of The Cable online newspaper

     ”I also have equity in two non-operational companies: Papyrus Media Limited and Bamisoro Media Limited

    “My vehicles are  VW Passat bought new in 2011 at N5.8million and BMW X5 2008 Model bought second hand in February 2016 at N3.3million.

     ”Household Furniture/Items: 9 KVA Hyundai Diesel Generator bought at N850, 000; 3 KVA Sunkam Inverter bought at N450, 000 and other household furniture, electronics, exercise equipment, artworks and others valued at N3.5million

     ”Shares in Publicly Quoted Companies: “I have shares in Skye Bank, Sterling Bank and Staco Insurance, bought in 2008 at N2.5million now presently valued at N296, 610.

     ”Assets of spouse and children: My wife runs two businesses: a salon and a bakery, with equipment and distribution vehicles all valued at N28.5 million.

    “We have three children under 18 and they do not own any assets.”

     The NEITI Executive Secretary explained why he decided to declare his assets publicly.

    Adio said he chose to emulate President Muhammadu Buhari, the late President Umaru Yar’Adua, ex-Governor Kayode Fayemi and others in declaring his assets publicly.

  • NEITI urges govt to end crude theft, others

    NEITI urges govt to end crude theft, others

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has urged the Federal Government to speed up measures  to end crude oil theft, considering the attendant financial losses and environmental degradation.

    The agency also advised the government to discontinue all forms of offshore processing arrangements of Nigerian crude, and oil swap. NEITI said the country loses so much money to crude oil theft, adding that in 2012 alone the country lost about 160 million barrels of crude valued at $13.7billion from three major oil companies, Shell, Chevron and the Nigerian Agip Oil Company, and which has continued to impact the oil and gas industry

    NEITI said: “It gives you an idea of the magnitude of the problem we are facing in this country. Imagine how far that money could have gone in alleviating the suffering of the people, and that’s just for crude oil theft and pipeline vandalism. The government needs to do something very seriously about it because it is bleeding in that area.”

    Under the crude oil swap arrangement, Nigeria’s crude oil was exchanged for refined products due to poor refining capacity of the refineries. There were concerns that the objective of this arrangement has been shortchanged and badly treated. In 2012 alone, the cost of crude oil swapped was about $6.4 billion while the value of refined products returned to the country was $6.3billion leaving the sum of $100 million as revenue loss to the country. NEITI also said between 2009 and 2011 over $866million was recorded as revenue loss under the swap arrangements.

    The Director of Communication, NEITI, Obiageli Onuorah, who spoke to The Nation in Lagos, said the country is also losing money as a result of under-assessment and under-payment including losses in meeting the cash call obligation, adding: “We have losses for not paying attention to the use of gas as a major revenue earner for the country.”

    She said: “The reform in the oil and gas industry should be a holistic thing. The amount of money we are losing from the various sectors on daily basis is very huge, so the government needs to do something very seriously about these losses and plug those leakages.”

    Onuorah commended President Muhammadu Buhari led government for its efforts in implementing part of the audit recommendations. She said since the inception of the present administration some of the positions of the NEITI reports have been implemented.

  • Buhari appoints new Board for NEITI

    President Muhammadu Buhari has approved the appointment of a new National Stakeholders Working Group (NSWG) also known as Governing Board for the Nigeria Extractive Industries Transparency Initiative (NEITI).

    According to a statement issued by the Director (Press) in the Office of the Secretary to the Government of the Federation (OSGF), Bolaji Adebiyi, the new Governing Board will be inaugurated in due course.

    The composition of the new Governing Board include the Honourable Minister of Solid Minerals Development – Chairman, Permanent Secretary, Federal Ministry of Finance – Member, Group Managing Director, Nigeria National Petroleum Corporation (NNPC) – Member.

    Others are President, Miners Association of Nigeria – Member, Representative of the Civil Society Organizations (to be elected by the organizations) – Member, President, Nigeria Mining and Geosciences Society – Member, President, Nigeria Union of Petroleum and Natural Gas (NUPENG) – Member, Hannatu Musa Musawa (Journalist), Representative, North-West Geo-Political zone – Member.

    Also in the board are – Mr. Lawan Gana Lantaiwa (Consultant), Representative, North-East Geo-Political Zone – Member, Mr. Bernard B. A. Ver (Accountant), Representative, North-Central Geo-Political Zone – Member, Mrs. Anne Adaeze Onyekwena (Representative, South-East Geo-Political Zone) – Member.

    Others include – Mr. Emmanuel Chiejina (Lawyer), Representative, South-South Geo-Political Zone – Member, Mr. Gbenga Onayiga (Journalist), Representative, South-West Geo-Political Zone – Member, and Mr. Waziri Onibiyo Adio – Executive Secretary.

    Another statement disclosed that President Buhari has also approved the appointment of Mr. Waziri Onibiyo Adio, as the Executive Secretary of NEITI.

    Until his appointment, Mr. Adio was a Communication Consultant and Publisher of Metrolope Magazine.

    Between 1995 and 2003, he held various editorial positions in Thisday Newspaper and was Special Adviser, Research and Strategy, Office of the Senate President, Federal Republic of Nigeria from August 2003 to October 2004.

    He was appointed Communication Specialist by United Nations Development Programme (UNDP) in 2004, a position he held until 2007when he left to serve as Director of Communications, NEITI from May 2007 to June 2008.

    Mr. Adio graduated with a BSc. (Mass Communication) from the University of Lagos in 1992, and obtained MSc. (Journalism) Degree from Columbia University, New York, United States in 1999.

    He also holds a Masters Degree in Public Administration from the Kennedy School of Government, Harvard University, Massachusetts, US, 2009.

    His appointment, the statement said, takes immediate effect.

  • NEITI: Why we can’t trace oil block owners

    NEITI: Why we can’t trace oil block owners

    Owners of oil blocks and oil and gas assets are difficult to trace because they manipulated their records in the Corporate Affairs Commission (CAC), the Nigerian Extractive Industries Transparency Initiative (NEITI) has said.

    The extractive industry watchdog yesterday said the owners falsified their records to hide their true identity.

    Its Acting Executive Secretary, Mr. Ogbonnaya Orji, who spoke in Abuja during a meeting with delegates from the global Extractive Industries Transparency Initiative, EITI, led by the incoming Chairman, Mr. Fredrik Reinfeldt and civil society organisations, however noted that the  issue of beneficial ownership as contained in EITI’s standards, requires the identity of the true owners of oil blocks.

    He added that records of the companies in the CAC are shrouded in secrecy and do not provide correct information about the true owners.

    He  said this has been a  challenge in implementing this specific requirement of EITI, while he appealed to EITI to understand the peculiarities in the Nigerian environment.

    Said Orji: “Beneficial ownership requires us to explain or provide information on the owners of certain oil blocks. But Nigeria is one kind of country; that is why I say nobody is going to suspend us; when you think we are going down, we tend to rise up and surpass expectations.

  • 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.

     

     

  • Approve new working group for NEITI

    Approve new working group for NEITI

    SIR: The Africa Network for Environment and Economic Justice, ANEEJ, welcomes the election of Fedrik Reinfeldt as the new chairperson of the Global Extractive Industries Transparency Initiative, EITI, as Clare Short prepares to step down in February. Fedrik Reinfeldt whose election is expected to be ratified in February at the 7th Global Conference in Lima, Peru, is also expected to visit Nigeria on February 7, along with the out-going EITI Chairperson.

    We congratulate EITI on the seamless and transparent transition process that has ushered in Fedrik Reinfeldt, and wish his time as chair of EITI a progressive one. Yet, with his planned visit to Nigeria in February, ANEEJ seeks to highlight issues with the implementation of previous NEITI audit reports.

    We urge President Muhammadu Buhari to use the opportunity of the visit of EITI leadership to immediately approve the constitution of a new National Stakeholders Working Group for Nigeria Extractive Industries Transparency Initiative (NEITI). This should facilitate the formal publication of NEITI 2013 oil, gas and solid minerals audit reports so as not to jeopardize Nigeria’s chances of being revalidated, having missed the December 31st 2015 deadline given by EITI for Nigeria to publish such report.

    In recent times, ANEEJ has been at the forefront in calling for a proper handling of NEITI audit reports. We expect the President this time to assure Nigerians of the determination of his administration to conclusively follow up with such recommendations because this will promote the on-going reforms in the extractive sector in Nigeria. At a time when Nigeria’s fortunes in the oil sector are dwindling, these expected reforms are the groundwork that Nigeria needs to bring the economy back on track.

    We are aware that EITI is currently reviewing the validation process and modalities as a result of the divergent views expressed by multi-stakeholders involved in the process. However, it is pertinent for the in-coming leadership of EITI to consider this review process a priority so as to harmonize the views of multi-stakeholders for EITI to achieve the desired impact.

     

    • Bob Majiri Oghene Etemiku

    ANEEJ, Benin City.