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Tag: NEITI

  • NEITI to legitimise illegal miners

    NEITI to legitimise illegal miners

    Nigerian Extraction Industries Transparency Initiative (NEITI) will soon legitimise all illegal miners spread across the country.

    Acting Executive Secretary, NEITI, Dr. Orji Ogbonnaya, said the initiative is seeking for an enabling environment to make their work look legitimate so that they can pay taxes, saying the current status where illegal miners dominate the sector, can no longer be ignored.

    He stated this yesterday in Abuja, when the management team of NEITI paid a courtesy visit to the Minister of Solid Minerals, Dr. Kayode Fayemi.

    His words: “We have spoken to the Minister on illegal mining, they call them illegal miners but we in NEITI call them artisnal miners, if we chase them away, they come back, they dominate the sector and they can no longer be ignored so we are looking at how, as has been done in countries like Ethiopia to find an enabling environment to make their work look legitimate so that they can pay taxes because we have only sixty five companies that are covered in the solid mineral sector but if field they are more, many of them do small, small businesses, if you tax those small businesses, it will create a lot of revenue.

    “We are aware of the enormous work that has commenced in the ministry, we feel it is important that NEITI visits the ministry to share information and date that will help the ministry in the ongoing reforms. We are aware that the oil industry globally is in crises and most countries that depends on oil are looking inwards for alternative means of survival and the solid minerals ministry in our country is better positioned.

    “We reached out to the minister to share with him on the job we have done and how the solid mineral ministry can help alleviate the pressure that the government is going through currently as a result of the crises in the oil industry.”

    Fayemi said in the face of the dwindling fortune of the oil and gas sector, the country clearly has to look for alternative source of revenue in the country.

    His words:”This is a government that is completely focused on transparency in a every sector, not just the extractive industry, it is just that the extractive industry happens to be a major focus because it is a major revenue earner for our country.

    “In the face of the dwindling fortune of the oil and gas sector, we clearly are looking at alternative, revenue sources for the country and alternative employment opportunities for our people. Some of the work presented really points clearly on what we really have to do in order to increase the level of resources available in the country.

    “You have managed to expose in your report the hidden revenue that is being generated that is not recorded either in our inland revenue sources or ministries royalties that is clearly going to assist us as we move ahead in our policy formulation strategy.”

  • NEITI ready to help NNPC in tracing NLNG’s unremitted $11.6b

    NEITI ready to help NNPC in tracing NLNG’s unremitted $11.6b

    The Group Managing  Director of the Nigeria National Petroleum Corporation (NNPC) Emmanue Ibe Kachikwu got a free offer from the Nigerian Extractive Industries Transparency Initiative (NEITI).

    It pledged the NNPC chief executive every institutional support to recover $11.6 billion that the corporation received from the Nigerian Liquefied Natural Gas (NLNG) Ltd but failed to remit into the Federation Account.

    NEITI said: “We are particularly encouraged by the recent pronouncement of the Dr Ibe Kachikwu on remittances of all NLNG dividends directly to the Federation account as required by law and demanded by all NEITI Reports.”

    The promise was contained in a statement by NEITI’s Director, Communications, Dr. Orji Ogbonnaya Orji that the corporation’s implementation of the pending remedial issues under a plan already developed by NEITI and the Inter Ministerial Task Team (IMTT) would be beneficial to the country.

    Dr. Orji listed such issues to include: inadequate metering infrastructure for accurate measurement of crude; the onerous Joint Venture (JV) cash call regime; inefficient cost determination; urgent resolution and review of pricing issues related to expired Memorandum of Understanding (MoU) and legal agreements with oil companies that have huge revenue loss implications for the nation.

    Others, said the spokesman, are: huge costs of fuel subsidy; crude oil swap and products exchange agreements; repair of the refineries; oil theft; review of existing fiscal regime in the industry; automation of record keeping and the politics of acquisition and assignments of oil blocks  by discretion among others.

    Assuring the NNPC of its cooperation, the statement added that “NEITI is ready and willing to provide further details if required.”

    NEITI said it was happy to identify with the work of the ad-Hoc Committee of five raised by the National Economic Council (NEC) to look into allegations of sharp practices in the revenue-generation agencies of government.

    The panel, chaired by Edo State Governor Adams Oshiomhole announced KPMG and the Pricewaterhouse Coopers as consultants to forensically audit the books of the agencies.

    Other members of the panel are governors: Nasiru El-Rufai (Kaduna); Akinwunmi Ambode (Lagos); Udom Emmanuel (Akwa Ibom) and Ibrahim Dakwambo (Gombe).

    In the statement, NEITI noted that one important issue it planned to the table if given opportunity, will be how the committee can assist the government to recover over $7 billion owned by oil companies.

    It said these disclosures are contained in NEITI audit reports as cases of under-payments, under-assessment’s arising from subjective interpretation of MoU and tax laws.

    NEITI stressed that “we have no doubt that our contributions will add value to the work of the committee.”

    The watchdog agency also endorsed two other decisions taken by President Muhammed Buhari’s sweeping reforms –   the recent directive on operation of a Single Treasury Account (STA) by all Ministries, Departments and Agencies (MDAs).

    NEITI’s interest in the new policy, according Orji, was borne out of the fact that over 70 per cent of the funds involved are directly or indirectly generated from extractive industries.

    NEITI submitted: “We find the singly treasure account policy, a vital move and a major reform – driven decision that would help eliminate fraudulent practices  created by multiple revenue  accounts by government agencies.”

    On its proposal to give advice to the NNPC, the statement said: “We in NEITI are ready to offer any advise,   support, partnership and cooperation based on mutual respect to the new NNPC that is emerging under the leadership of Dr. Ibe Kachikwu.

    “This is to ensure that the NNPC conforms fully to the requirements of transparency and accountability as enshrined in the NEITI act of 2007 and the principles of the global EITI. Both the EITI and NEITI stand firmly with Nigerian citizens that revenues from oil, gas and mining should support national development and reduce poverty in our country.”

    NEITI also welcomed President Buhari’s decision to set up a Presidential Advisory Committee on Anti-Corruption under the chairmanship of by Prof. Itsay Sagay, a Senior Advocate of Nigeria (SAN).

    The statement added: “The work of this committee is not only timely but very useful. It is a good platform for all the 21 anti-corruption agencies, coordinated by the Technical Unit on Governance and Anti-Corruption (TUGAR) under the chairmanship of NEITI, to share information and offer informed advice based on experiences over the years.

    “It is our expectation that Prof Sagay’s committee will provide NEITI and all the agencies under the Inter – Agency Task Team (IATT) an opportunity to make presentations.

    “In view of the huge potentials in the mining and solid minerals sector, we urge President Buhari to please extend the on-going reforms to that sector. From NEITI’s scoping study and independent audit reports, this sector has the potential to yield more revenues for the country than oil, if given the attention it deserves.

    “One urgent step required now is to immediately check the activities of illegal miners many of whom are foreigners that have taken over the solid minerals sector without authorisation.

    “Finally, NEITI’s view remains that for these sweeping reforms initiated at the Federal level to yield results and impact on the economy, state governments need to be encouraged to find enough reasons to step down the on-going reforms at the state level.

    “This is important because of the wider implications in the revenue sharing formula, resource allocation, and efficient utilisation to meet the overall strategic national development objectives.”

  • Buhari ‘ll implement NEITI audit reports

    Buhari ‘ll implement NEITI audit reports

    The Federal Government under President Muhammadu Buhari will take all necessary steps to implement the findings and recommendations contained in the Audit Reports of Nigeria Extractive Industries Transparency Initiative (NEITI).

    Vice-President, Prof. Yemi Osinbajo gave the assurance yesterday while receiving the Chair of the global Extractive Industries Transparency Initiative (EITI), Clare Short and her delegation at the Defence House, Abuja.

    NEITI Director of Communications, Dr. Orji Ogbonnaya Orji in a statement yesterday, said the VP reaffirmed Federal Governments’ commitment to the implementation of EITI principles as part of plans to reform the oil and gas sector. Prof. Osinbajo commended NEITI for its courage, diligence and commitment to corporate governance of the oil, gas and mining industries. He said the Federal Government will carefully study the reports with a view to ensuring that the findings and recommendations guide government actions on the reforms.

    Short advised the government to consider a major shakeup in the oil and gas industry if the benefits from Nigeria’s abundant resources are to be felt by all Nigerians. “The NEITI Reports have all the information and data that will guide the government to reform the industry. It is also important that the government integrates the NEITI into its overall economic policy team.”

    The Chairman of NEITI, Ledum Mitee appealed to the government to overhaul the Inter Ministerial Task Team (IMTT) set up to implement NEITI reports, arguing that the Team has recorded very little progress.

    The Executive Secretary of NEITI, Mrs Zainab Ahmed  urged the government to take urgent steps to divest Nigeria’s interest in the joint ventures operations to free the country from huge burden imposed by Joint Venture obligations.

    Mrs Ahmed  also advised the government to critically examine the management of domestic crude allocations, consider the removal of oil subsidy, abrogation of oil swap arrangement and take urgent steps to recover huge sums that are outstanding in the hands of companies as a result of underpayments, underassessment of taxes, rents and royalties.

  • 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.

     

  • NEITI tackles NIMASA over audit report

    NEITI tackles NIMASA over audit report

    The Nigerian Extractive Industries Transparency Initiative ((NEITI) yesterday expressed displeasure over the refusal of the Nigerian Maritime Administration and Safety Agency (NIMASA) to comply with the 2012 oil and gas report.

    According to the Executive Secretary of NEITI, Mrs. Zainab Ahmed, the watchdog organization would ensure compliance with the audit report.

    She said that: “Also in the just released 2012 report, we have indication there that NIMSA also did not cooperate and we have started the process of bringing NIMASA to the table.

    “We have been having discussions with them and we are hopeful that that also will be resolved. What we have not done is to go up to the court process, which is provided for in the law because the general belief is that it is better to engage the agencies to understand the importance of compliance.”

    She spoke in a news conference with the Chair of the global Extractive Industries Transparency Initiative (EITI) Clare Short at Abuja.

    Short  said only the Federal Government can effectively sanction oil and gas companies indicted by  NEITI for defrauding the country.

    The Global EITI chair  noted that government can achieve sanctions through effective enforcement of the laws of Nigeria.

    “The sanctions are enforcement of the laws of Nigeria. To insure that all the companies pay their taxes, and those taxes are properly managed and spent for the benefit of the people. The sanctions are in the hands of the government of course you know that some international action is being taken against corruption,” she said.

  • 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.

     

  • Govt concealing oil firms’ licensing registers, contracts, says NEITI

    Govt concealing oil firms’ licensing registers, contracts, says NEITI

    The Nigeria Extractive Industries Transparency Initiative (NEITI) yesterday said   it is having challenges getting the Federal Government to open up the licensing registers and contracts of oil and gas companies to the public.

    The energy industry watchdog was, however, optimistic that the country will still retain its compliant status in the global Extractive Industries Transparency Initiative (EITI) in 2016.

    Its Executive Secretary, Mrs. Zainab Ahmed, who spoke to reporters at the Pre-Validation Workshop in Abuja,  said the failure of the National Assembly to debate its audit reports and lack of will to implement its recommendations were also major setback for Nigeria.

    Nigeria had signed up to implement EITI in the oil, gas and mining industries in 2003; began implementation in 2004 and became the first country out of 46 nations in the global body to support the process with a specific Law, the NEITI Act of 2007.

    Nigeria was designated as an EITI Compliance Country by the global body in 2013.

    EITI Compliant countries such as Nigeria are required to undertake Validation every three years. The 2016 exercise is coming at a time NEITI’s reports have led to aggressive public demand for reforms in the extractive industries as exemplified in the country’s decision to introduce the Petroleum Industry Bill (PIB) before the National Assembly for consideration and passage into law.

    The validation exercise is to be conducted by independent international experts to be appointed by the global EITI based in Oslo, Norway. NEITI is to face the validation examination team in January 2016.

    Ahmed said the country has done extensive work in the EITI implementation process which among other things made it the best EITI implementing country in 2012.

    She said: “The major challenge we have in Nigeria in implementing EITI is our inability to open up the licensing registers of the oil and gas companies; our inability to open up and put in the public domain operating contracts for the oil and gas sector. Those are our major challenge but we have done in NEITI with the guidance of NSWG is that we have looked at the standards and said okay standards are not really in the public but what did the requirements ask for?

    “So we extracted the requirements from the standard and designed a special template to be able to capture key information from those contracts and we send these requests to the companies and to DPR (Department of Petroleum Resources).

    “So, we got those key information we thought was vital from the contracts and from the licences from both the DPR and the companies. In that regards we have been able to meet the requirements by the standard albeit in this round about manner.

    “But it cannot continue to be like that and they will accept it because everybody knows the contracts are not in the public domain. Everybody knows the licence register is not something you can sign up to our website and access.

    “Subsequently, we must as a country make sure that these things happen. In Ghana, Liberia, Gambia and a lot other very small countries you can actually click on a website and see these information but it is not so in Nigeria.”

    She however noted that the lack of will to take remedial actions by the concerned government agencies was disturbing.

  • Orji Ogbonnaya Orji loses mum

    MRS. Oyidia Orji, the mother of Dr. Orji Ogbonnaya Orji, a renowned broadcaster and journalist, who is currently, NEITI’s Director, Communications at the Presidency Abuja, has joined her ancestors, aged 87.

    Until her death, Madam Orji, from Ugwuavor village, Arochukwu, Abia State, was the Eze-nwanyi (Women leader) of the village and Mother –General of Christ Ascension Church, Arochukwu.

    An agent of community mobilisation and social worker, the late Madam Orji, led the women in her community  to embrace self- development initiatives and economic empowerment programmes through entrepreneurship. She was also involved in conflict prevention, management and resolution in families.  In recognition of her services, she was honoured as “Nne-oha Arochukwu” in 2005   by Nzuko Arochukwu, women’s wing.

    A statement from the family said Madam Oyidia Orji’s funeral will begin with a Christian wake in her family compound, Eziukwu, Ugwuavor village, Arochukwu, on Friday October 31st, while interment will follow the next day, Saturday, November 1st,  after a commendation service.

  • NEITI seeks unbundling of PIB

    NEITI seeks unbundling of PIB

    The Nigeria Extractive Industries Transparency Initiative (NEITI) yesterday called for the unbundling of the Petroleum Industry Bill (PIB) into separate bills to ensure quick passage.

    NEITI Chairman, Ledum Mitee, who made this suggestion at the Roundtable on the remediation issues in the oil and gas industry audit reports in Abuja, called on the National Assembly to expedite actions on the passage of the PIB.

    He added that some of the “identified gaps  are institutional, it is important to state that the delay in the passage of the PIB has become a major obstacle to the desired reforms in our oil and gas sector.

    “In order to address broader policy and governance gaps existing in the sector, passage of the PIB has become very urgent and imperative.

    “ As we may be aware, the PIB not only makes the issue of transparency an overarching objective, but also makes provisions that,  when enacted, will strengthen NEITI roles in the sector.”

    The Roundtable was in collaboration of the Revenue Watch Institute, Open Society Initiative for West Africa (OSIWA) and other  international organisations.

    Mitee said remediation has been of engaging concern of NEITI, stressing that the Federal Government has reconstituted and expanded the platform, Inter-Ministerial Task Team (IMTT), for addressing remediation issues arising from the audit reports.

    The team, he said, is to strengthen implementation of the recommendations contained in the NEITI audit reports as well as ensuring that those corrective measures in the reports were adequately addressed.

  • 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.