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Tag: NEITI

  • NEITI makes case for environmental remediation fund

    NEITI makes case for environmental remediation fund

    The Nigerian Extractive Industries Transparency Initiative (NEITI) has sought the establishment or strengthening of the Environmental Remediation Fund to address the challenges of the host communities of decommissioned oil wells.

    Its Executive Secretary, Dr. Orji Ogbonnaya Orji, made this call in Abuja at a briefing on the Implementation of Extractive Industries Transparency Initiative (EITI).

    Orji, who said it was not certain whether any Fund is in place to tackle the environmental issues of used and abandoned oil wells, said the communities were always at the receiving end of health hazard emanating from the decommissioned facilities.

    “Those companies that were doing business in those oil wells by the time they decommissioned them, it comes with environmental cost. 

    “Fund has to be set aside to address this . That is what I said but I don’t know whether such a fund exists,” he stated. 

    He vowed to commence engagement with the Ministry of Environment and its agencies such as National Oil Spill Detection and Response Agency (NOSDRA) and National Environmental Standards and Regulations Enforcement Agency (NESREA) to remedy the situation.

    Read Also: NEITI puts FAAC disbursements to three-tiers of govt in 2024 at N15.26tr

    The NEITI boss said the contribution of 0.80 per cent from the solid minerals to the country’s Gross Domestic Product (GDP) was embarrassing. He said the sector could do more.

    According to Orji, the Minister Dr. Dele Alake has worked so hard for the realization of the potential of the industry but it is still lagging behind.

    He said since the challenges in the industry require multi-stakeholder efforts, NEITI was working with the National Assembly and Civil Society Organizations for the growth of the industry to address them.

    Orji said, “What is so worrisome for us is that the solid minerals sector holds the largest potential to revolutionize the Nigerian economy.
    ” Its current contribution of 0.8% to our national GDP is embarrassing to say the least. They could do more.

    “In spite of the passion that we have seen under the new minister and other ministers that have worked with them, they have all demonstrated passion, but there are problems that need multi-stakeholders’ support.

    ” Government, the National Assembly and the Ministry and the civil society and industry working together to look at. So we are supporting the Ministry.”

  • NEITI calls for more women in extractive sector

    NEITI calls for more women in extractive sector

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for gender inclusivity in the policy making positions in the extractive industry to enhance the principles of fairness and unlock the full potential of the nation.

    The Executive Secretary, Orji Ogbonnaya Orji, made the call at a special event to commemorate the 2025 International Women’s Day (IWD), in Abuja.

    Highlighting the theme of the year, “Invest in Women: Accelerate Action.” the Executive Secretary noted that “Globally, the extractive industry has been characterised by a significant gender imbalance. Women remain underrepresented in key top positions, often facing barriers that hinder their full participation and advancement”.

    With women constituting a mere 12 per cent of the labour force in the extractive sector, “The disparity limits the potential of half of the world’s population and deprives the industry of diverse perspectives essential for sustainable growth and innovation”, Ogbonnaya Orji noted.

    He therefore called on policy makers at all levels of governance to foster a wider space for inclusion, gender equity, and support within our society, particularly in the extractive sector and governance at large especially at the leadership level where there is a deep yawning gap.

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    Ogbonnaya Orji explained that the current rate of progress, achieving full gender parity is projected to take until 2158 years, approximately five generations from now, which protracted timeline he affirms is unacceptable. He called for immediate and concerted efforts to dismantle “systemic barriers and biases impeding women’s advancement.”

    The Executive Secretary further emphasised that: “The business case for investing in women has never been clearer. To address these disparities, we must implement inclusive policies that promote gender diversity, empower women with the necessary skills and knowledge to ascend to leadership positions, ensures accountability for commitments to equity, and fosters a supportive culture.”

    He stated that the underrepresentation of women in both the extractive sector and governance is not merely a matter of social justice; it is an issue that impacts economic efficiency and sustainable development, with diverse leadership teams under women known to foster innovation, enhance decision-making, and improve organisational performance.

    While commending the realm of governance in Nigeria, he noted that women’s representation at the federal level in Nigeria has seen some progress, yet much remains to be achieved. While there have been notable appointments of women to ministerial and other key positions, the overall percentage of women in federal governance roles does not yet reflect a balanced or equitable representation especially in elected positions.

     “As we deliberate today, let us reaffirm our commitment to creating a more inclusive and equitable society. By ensuring that women have equal opportunities to participate and lead in the extractive sector and governance, we not only uphold the principles of fairness but also unlock the full potential of our nation”. Ogbonnaya Orji reaffirmed.

    The keynote speaker at this year’s NEITI IWD, the President of the International Federation of Women Lawyers (FIDA) and General Counsel at the Nigeria Sovereign Investment Authority (NSIA), Ezinwa Okoroafor, underscored the importance of commemoration of Women’s Day as an opportunity to assess the progress that has been made on gender equality.

    Okoroafor commended NEITI’s leadership for its initiative to celebrate women adding that the theme, ‘Accelerate Action,’ calls for rapid progress in achieving gender equality and the need to confront the persistent challenges women face globally, while exploring ways to mitigate them.

    The FIDA President also commended NEITI’s efforts on gender reporting within the extractive sector, a requirement by the global EITI, noting that the exercise will foster inclusivity and accountability. She identified key challenges faced by women, which include “Societal mindset, low self-expectations, and cultural barriers. Women should however, be professional, competent, and result-driven, integrating technology into their work and uphold integrity”, Ezinwa emphasised

    The Representative of Women/Geoscientists on the NEITI Board, Former President of the Association of Professional Women Engineers-APWEN, and an Extractive Industries Expert, Engr. Nkechi Isigwe, highlighted that this year’s Women’s Day celebration is an opportunity to reflect on the progress made in advancing gender inclusion in the extractive industry.

    Engr. Isigwe emphasised that women have consistently demonstrated leadership and resilience in the extractive industry. She noted that NEITI is well-positioned to push for further inclusion and change in the sector. She commended NEITI’s commitment to promoting gender inclusion in the extractive sector and fostering a better operating environment.

    A Public Health Consultant, Amede Osakwe, who spoke on “Public Health and Career Women in the 21st Century”, explained that women are an integral part of humanity—indispensable co-pilots of life that nurture and contribute to societal progress.

    According to Osakwe, “Addressing women’s health issues and challenges is crucial for a thriving and sustainable world”.

    Osakwe highlighted some workplace challenges faced by women, such as gender-insensitivity and called for more inclusive policies to bridge these gaps. She reiterated that: “Organizations with strong female representation consistently outperform their peers in productivity, innovation, and employee retention. What was once framed as a matter of social responsibility has emerged as an undeniable strategic imperative.”

    The Country Officer, Natural Resource Governance Institute (NRGI), Tengii Ikoli in her goodwill message, applauded NEITI for creating a platform where women can connect and exchange ideas.

    Ikoli noted that as the energy transition progresses, women who have significantly contributed to Nigeria’s development are often left behind. She called for action to advocate for women’s rights at all levels of government and society.

  • How to recover N66.6b, $6.07b liabilities, by NEITI

    How to recover N66.6b, $6.07b liabilities, by NEITI

    The Nigeria Extractive Industries Transparency Initiative (NEITI), has explained the procedure in recovering the N66.6b and $6.07b and other debts owed by companies.

    It’s Executive Secretary (ES), Orji Ogbonnaya Orji, said the multi-stakeholder framework of the NEITI and industrial report required all stakeholders to be involved once the agency releases it’s report.

    It’s the duty of the governments, the Civil Society, and even companies themselves, including the citizens to use the information and data released and placed in the public domain to hold everyone involved, mentioned in the report to account. “So, our main job, is to provide information and data on the public domain, Ogbonnaya Orji explained.

    It’s now the responsibility of everyone involved, including the governments, the companies themselves, the civil society, and the legislature to look at the issues raised in the report and use those information and invite, investigate, monitor, and provide oversight to ensure that the recommendations made were implemented, he said.

    According to him, the issue of liabilities in the industrial to government, put at the above stated sum were in foreign currency and the naira

    These liabilities, he said, were disclosed in the industrial report released in December, 2024.

    As it concerns 2023 industrial report, this included liabilities due to Federal Inland Revenue Service in form of all taxes, education tax, petroleum profit tax, group sense tax, adding all taxes are collected by the Federal Inland Revenue Service (FIRS).

    Read Also: NEITI, EFCC working to recover $6b, N66b oil sector debts

    The rest, Ogbonnaya Orji said, were rents, concessions, signature bonus, royalties, etc., collectible revenues by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    The Executive Secretary said these two agencies had the responsibility to work with NEITI using the reports to go after, to look after the agencies adding there are government agencies involved and not just companies.

    According to him, both government agencies and companies are to find out, to be able to hold, to ask questions and seek the collection of these revenues. Ogbonnaya Orji added that most of these companies were cooperating, they don’t have any issues, however, it’s the responsibility of the government agencies to engaged them, to make sure that these revenues were collected.

    The Executive Secretary stated that when NEITI released the report, it also expects the companies to look onwards and find out if the relevant departments had not made remittances as may have been approved.

    So, it could be an internal process on both sides.

    Ogbonnaya Orji reiterated that the duty of NEITI was to provide all the details and empirical data that were required to support the process. “So, NEITI does not collect revenue, we have no bank account, we don’t own money”, the Executive Secretary explained.

    “The monies is paid to NEITI, the monies are paid to those agencies. Our job is public disclosure of where these monies can be collected using the parameters laid down in the financial regime governing the sector”,

    The Executive Secretary said there was a set of financial regime guidelines governing the sector, which was understood. He said: When we use this and compute what was paid and what was not paid, we disclose what was not paid. So we are working with the agencies.

    We’re also working with the companies. We’re also working with the National Assembly on these issues. But we are not able to tell you at this moment what has been collected or what has not been collected because we don’t speak on speculation.

    It is our 2024 report, which we hope will be published this year (2025) that will now tell us, provide the status of where we are.

    Ogbonnaya Orji said it’s when agency publishes the next report, it would be find out whether it has made progress or has incurred or there were more liabilities.

    “But when we release our report, we expect all hands to be on deck. The government needs to understand the need to activate all relevant arms because we share our reports widely”, he stated.

    The Executive Secretary however expressed the confidence in the Economic and Financial Crimes Commission (EFCC),  adding that they are taking the matter up and NEITI is working with them, and providing all the necessary data.

    “We’re also happy with what the civil society section of the civil society are doing. We’re happy with the media, taking this matter up too.

    And we expect that very soon the National Assembly will convene a public hearing on the contents of this report.  So those are the kind of activities that are on to be able to make sure that the issues and the facts provided in our reports are not swept under the carpet”, Ogbonnaya Orji assured.

    According to Ogbonnaya Orji: There are a lot of activities ongoing, but we cannot at this moment tell you the progress made except we conduct the next round of industrial report, which we are about commencing.

    The 2024 industrial report is about to begin. And when we finish that report later this year, we will find out what has changed in the last report we did. The Executive Secretary however reassured that the report would incentivise huge revenue to government in many other directions.

  • House committee gets NEITI’s budget proposal

    House committee gets NEITI’s budget proposal

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has presented its 2024 Budget Performance Report. The agency also outlined its key priorities for the 2025 fiscal year.

    The Executive Secretary, Orji Ogbonnaya Orji who led the NEITI Team to the presentation reaffirmed the agency’s commitment to promoting transparency and accountability in Nigeria’s extractive sector while aligning with the national objectives of the economic diversification and sustainable resource management of government.

    Presenting the budget performance and projections for the 2025 fiscal year to the House Committee on Petroleum Resources – (Upstream), Chaired by Alhassan Ado Doguwa, Orji disclosed that NEITI recorded commendable and measurable achievements in 2024, which was driven by the effective utilisation of its approved budget.

    The achievements, he said were in the areas of comprehensive and timely reporting, capacity building, stakeholders’ engagements and efficient budget execution. 

    On Comprehensive and timely reporting, NEITI completed and disseminated its 2022 and 2023 oil, gas, and solid minerals industry reports. These reports according to him have been critical in shaping public policy and industry reforms, including addressing energy transition challenges.

    Read Also: NEITI working with EFCC to recover $6 billion, N66 billion oil debt, says Executive Secretary

    While explaining the achievement made in the areas of capacity building and stakeholders’ engagement’s, Orji noted that “NEITI strengthened its partnerships with civil society organizations, media, and government agencies, ensuring that the findings of its reports translated into actionable outcomes”.

    On efficient budget execution, the Executive Secretary explained that “Despite economic constraints, NEITI achieved significant milestones with a prudent allocation of resources across personnel, overheads, and capital projects”.

    On the 2025 Budget Objectives and Priorities, he revealed the agency had set strategic goals for the implementation of its objective and priorities as outlined in the costed NEITI Workplan which is in alignment with the agency’s Strategic Plan.

    According to Orji, using the 2025 budget, “NEITI aims to build on the 2024 successes by focusing on strategic priorities that aligns with Nigeria’s socio-economic goals.

    These include strengthening fiscal transparency, energy transition and climate action, policy advocacy, legal reforms, capacity development and infrastructure operations”.

    Ogbonnaya Orji explained that NEITI would conduct independent audits and publish the reports that would cover year 2024 operations in the oil, gas, and solid minerals sectors.

    NEITI will also expand its focus on revenue generation, including tracking contributions from emerging energy sources and addressing illicit financial flows.

    In the areas of Energy Transition and Climate Action, he said the agency intended to support Nigeria’s energy transition roadmap by identifying opportunities for green energy solutions and advocating for the mitigation of environmental impacts from extractive activities. He said NEITI would also monitor government and industry compliance with gas flaring reduction commitments.

    On Policy Advocacy and Legal Reforms, Orji stated that NEITI would collaborate with stakeholders to finalise and implement the outstanding regulations under the Petroleum Industry Act (PIA).

    NEITI will also advocate for reforms in the solid minerals sector to ensure increased revenue and accountability. Orji further said that one of the priorities for 2025 was to enhance NEITI’s internal capacity to meet global transparency standards, including upgrading technological tools and training of personnel to meet the demands of EITI implementation in Nigeria.

    “We will also facilitate public education and awareness campaigns and build the capacity of stakeholders to strengthen engagements in resource governance,” Orji emphasised.

    In the area of infrastructure and operations, the Executive Secretary said that “NEITI will execute capital projects to support institutional strengthening, including IT infrastructure upgrades and operational efficiency improvements”.

  • NEITI working with EFCC to recover $6 billion, N66 billion oil debt, says Executive Secretary

    NEITI working with EFCC to recover $6 billion, N66 billion oil debt, says Executive Secretary

    Nigeria Extractive Industries Transparency Initiative (NEITI) said on Monday that they were working in collaboration with the Economic and Financial Crimes Commission to recover about 6 billion dollars and another N66 billion owed to the Federal government by industry stakeholders in the oil sector.

    Executive Secretary of the agency, Orji Ogbonnaya Orji who disclosed this while defending the 2025 budget before the House Committee on Petroleum Resources, Upstream said that the agency has presented all its reports on the extractive industry to the parliament.

    He said that NEITI was set up to enthrone transparency and accountability in the Nigeria oil and gas as well as the mining sector adding that the agency was handed a budget envelope of N6.5 billion for the 2025 financial year.

    This is made up of N2.220 billion for personnel, N1.722 for overhead and N2.575 billion for capital projects.

    He said some of the critical activities of the agency in the year 2025 will include conducting an industry report of the oil gas and mining sector, as well as fiscal allocation and statutory disbursement audit, research studies on the actual volume of PMS consumed in Nigeria, the economic impact of energy transition in Nigeria and a national perception survey EITI implementation in Nigeria.

    He said from its 2020 and 2021 reports alone, over 3.7 billion dollars were recovered into government coffers as outstanding liabilities from companies operating in the Oil and gas sector in the country. 

    However, members of the House Committee on Petroleum Resources, Upstream queried the agency for repeating items budgeted for in 2024, while also including items that are not justifiable in the current economic situation in the country.

    Kafilat Ogbara (APC, Lagos) said agencies of government should ensure that what they bring to the parliament as their budget complies with the line items specified in the budget and not just see the annual budget as a ritual of appropriating money to get their share of the national cake.

    Ogbara queried why the agency will budget N32 million for meals in the 2025 budget when Nigerians are going through hard times saying, “There is no way you can spend that amount of money for meals in a year. What are you serving outside water and Tom Tom? A lot of Nigerians are suffering and you are giving us a figure of N32 million for meals and you even put the National Assembly on the list of stakeholders. I can’t remember this committee going to oversight this agency since it was inaugurated.

    She said: “Most of our MDAs should ensure that what they are bringing as budget proposal must tally with the line item and the purpose why you want to use such funds Let us not just see budget defence as the money is there and we should share it. So, let us see how to get our share.

    “Here, I can see under maintenance service, N12 million. What is that? It is not specified. You also have annual budget expenses and administration. You used N5 million last year and in 2025, you want N25 million for logistics for annual budget preparation by the secretariat. What is that? I don’t understand. You are coming here and you want to use N25 million to print the document or what?

    “Where you said refreshment and meals, what you used for refreshment and meals in 2024 is more than what you are proposing for 2025 despite the fact that things are more expensive now, and in your justification, you mentioned the National Assembly.

    “I cannot remember this committee inviting us for oversight to come and eat in your establishment. So refreshments and meals, N32 million. No matter the type of stakeholders that come to you throughout the year, there is no way you will spend that amount. You don’t serve more than tom tom, coke, and water. There is never a time you served meals and yet, you want N32 million.

    “How many establishments will come to you in 12 months? So, this thing should be what it should be, not because we are doing budget defence and everybody is just putting their things. This is taxpayers’ money and a lot of Nigerians are suffering. If some Nigerians see just N500,000, it will go a long way in changing their lives. For us to be putting these figures, it gives me a headache as an individual.

    Also contributing, Ademorin Kuye (APC, Lagos) said in preparing the annual budget agencies of government should be mindful of the economic situation in the country adding that the impression of Nigerians is that the National Assembly is a rubber stamp and will approve anything that is brought to them by government agencies.

    Kuye said: “We are all aware of the situation in the country and we must be circumspect and be prudent in our expenditure because the general feeling out there is that the National Assembly is just a rubber stamp and whatever they bring is what we approve and that is not so.

    “Looking at this 2025 budget, when you see the repetition that comes from 2024 like photocopying machines, shredding machines and the amount they put here. For example, for the purchase of photocopying machines, they put N81.2 million.

    “The best sharp MT5051 coloured photocopier is just about N4.1 million. If you use that to divide your N81 million, you will be buying about 19 copiers and for whose office? Then you look at the shredding machines. The highest you get is about N240,000 and then you want to spend about N6 million, which means you are buying about 25 of that.

    “Then you look at the amount they want to use for renovation. Even though many of us are not builders, we have little property here and there that we do improve on. Now you said you want to spend N175 million to just upgrade security posts and office fencing? For the sake of Nigerians, we should reduce some of these things”

    Chairman of the Committee, Alhassan Ado Doguwa also faulted the language used by the agency in the preparation of the budget and the inclusion of the National Assembly as those benefiting from its welfare package.

    Doguwa said that since the committee was constituted, it has not visited the agency on oversight, wondering why they will be included in such a welfare package, adding that the only welfare the House expected from them was the welfare of the Nigerian people.

    “He said while I agree that the budget stops at our desk and you are just presenting a proposal, I would like to say that the economy is bad, and the population of people for whom we are here is crying out. Agencies of government must be mindful of what they spend out of public resources.

    “All these proposals are going to be spent at the expense of the Nigerian people. Sometimes, we come to make presentations here that sound funny and very insulting in the eyes of the people. When you say in your projection things like welfare package inform of ex-gracia, health insurance, welfare packages to staff and some critical stakeholders during welfare packages.

    “The language is very indicative and that will attract negative responses from members of the public. You also write as part of your stakeholders, the National Assembly, Accountant General, and others. This is an eyesore and we cannot see this and close our eyes. It is wiser and very prudent to use what we utilize for the benefit of the people.

    Read Also: NEITI urges NNPCL to complete refineries rehabilitation

    “Even though you are serving the interest of the people when expenditure is made to address the gallery the National Assembly will not allow it. That is why I say we will not pass the budget now, but scrutinise it. You put in your budget that you have a welfare package for members of the National Assembly.

    “For the past two years, this committee has never visited the agency for oversight. Why will you be writing in black and white that you have a welfare package for stakeholders in the National Assembly?

    “I take exception to that and I want to say that that we have never been accorded that opportunity to receive welfare from NEITI or any other agency. The only welfare we look forward to is the welfare of the Nigerian people because our welfare is taken care of here statutorily by the National Assembly”.

    He, however, assured that the Committee was ready to support the agency in actualising its mandate, saying your agency is a critical one and the legislature unappreciative of the work that you are doing.

    “We will try as much as possible to support you as long as you can justify the reasons for one expenditure or the other. Then the legislature will have no option than to support you and provide you with the enabling financial environment for you to discharge your duties and mandate.”

  • NEITI urges NNPCL to complete refineries rehabilitation

    NEITI urges NNPCL to complete refineries rehabilitation

    The Nigerian Extractive Industries Transparency Initiative (NEITI) has urged the Nigerian National Petroleum Company Limited (NNPCL) to fastrack action on the ongoing rehabilitation of Phase two Port Harcourt Refinery Company Limited and Kaduna Refinery.

    The watchdog organisation made the call in a press statement its Communication & Stakeholders Management, Acting Director, Mrs. Obiageli Onuorah issued yesterday.

    “We request the NNPC to expedite action on the second phase of the Port Harcourt Refinery and the ongoing rehabilitation of the Kaduna refinery. This should be followed closely with the restoration of the phase 1 of the Port Harcourt refinery to optimal capacity in the ongoing rehabilitation efforts”, said NEITI.

    It commended NNPCL on the successful completion of the first phase of the Port Harcourt Refinery rehabilitation project and the gradual resumption of operations at the Warri Refinery.

    These accomplishments, according to NEITI, represent significant strides towards addressing Nigeria’s long-standing dependence on imported petroleum products.

    The statement stressed that the operationalisation of these refineries is a monumental step towards achieving energy self-sufficiency and fostering economic sustainability.

    Read Also: NEITI blames 79% dip in crude oil production on theft

    The statement reads in part: “By reducing the staggering costs associated with fuel importation, this milestone will positively impact Nigeria’s foreign exchange reserves and create a ripple effect across key sectors of the economy.

    “NEITI acknowledges that the revitalisation of the Port Harcourt and Warri Refineries has the potential to enhance energy security, create jobs, stimulate local industries, and free up critical funds that can be redirected towards national priorities like health, education, and infrastructure.”

    “You will recall that NEITI through its Industry Reports for the Oil and Gas 2023 released recently disclosed that between 2006-2023 (in 18 years), a total of N15.87 Trillion has been expended as under recovery through price differentials (Subsidy) with 2022 recording the highest sum of N4.714 Trillion.

    “2022 also recorded the highest importation of PMS put at 23.54 Billion litres, while 2017 recorded the lowest import volumes of 16.88 billion litres. Furthermore.

    “Between 2022 and 2023, importation volumes declined by 3.25 billion litres (14%) from 23.54 billion litres in 2022 to 20.28 billion litres in 2023.

    “This is attributed to the announcement of the removal of fuel subsidy.

    With the current efforts to put the refineries back to work, NEITI is delighted that the huge payments expended on subsidy will hence forth be available to support national development, ongoing rebuilding of the national infrastructure and poverty reduction.

    “We commend the leadership of the NNPCL team for their resilience, dedication, and unwavering determination in executing this complex and challenging task.

    “ As stakeholders in Nigeria’s energy sector, NEITI said that it remains committed to supporting NNPCL’s efforts to ensure the long-term success of these projects and to share the achievements with national and global partners, including the Extractive Industries Transparency Initiative (EITI) community.

    “NEITI stands ready to collaborate with NNPCL to sustain and expand these gains in the national interest and Nigeria’s energy security.”

  • NEITI urges NNPCL to complete refinery rehabilitation

    NEITI urges NNPCL to complete refinery rehabilitation

    The Nigerian Extractive Industries Transparency Initiative (NEITI) has urged the Nigerian National Petroleum Company Limited (NNPCL) to fast-track action on the ongoing rehabilitation of Phase Two Port Harcourt Refinery Company Limited and Kaduna Refinery.

    The watchdog organization made the call in a press statement its Communication & Stakeholders Management, Acting Director, Mrs. Obiageli Onuorah issued yesterday.

    “We request the NNPC to expedite action on the second phase of the Port Harcourt Refinery and the ongoing rehabilitation of the Kaduna refinery. This should be followed closely with the restoration of phase 1 of the Port Harcourt refinery to optimal capacity in the ongoing rehabilitation efforts”, said NEITI.

    It commended NNPCL on the successful completion of the first phase of the Port Harcourt Refinery rehabilitation project and the gradual resumption of operations at the Warri Refinery.

    These accomplishments, according to NEITI, represent significant strides towards addressing Nigeria’s long-standing dependence on imported petroleum products.

    The statement stressed that the operationalisation of these refineries is a monumental step towards achieving energy self-sufficiency and fostering economic sustainability.

    The statement reads in part: “By reducing the staggering costs associated with fuel importation, this milestone will positively impact Nigeria’s foreign exchange reserves and create a ripple effect across key sectors of the economy.

    Read Also: REVEALED: How Nigerian banks, fintechs are dominating African economy

    “NEITI acknowledges that the revitalization of the Port Harcourt and Warri Refineries has the potential to enhance energy security, create jobs, stimulate local industries, and free up critical funds that can be redirected towards national priorities like health, education, and infrastructure.

    “You will recall that NEITI through its Industry Reports for the Oil and Gas 2023 released recently disclosed that between 2006-2023 (in 18 years), a total of N15.87 Trillion has been expended as under-recovery through price differentials (Subsidy) with 2022 recording the highest sum of N4.714 Trillion.

    “2022 also recorded the highest importation of PMS put at 23.54 Billion litres, while 2017 recorded the lowest import volumes of 16.88 billion litres. Furthermore.

    “Between 2022 and 2023, importation volumes declined by 3.25 billion litres (14%) from 23.54 billion litres in 2022 to 20.28 billion litres in 2023.

    “This is attributed to the announcement of the removal of fuel subsidy.

    With the current efforts to put the refineries back to work, NEITI is delighted that the huge payments expended on subsidy will henceforth be available to support national development, ongoing rebuilding of the national infrastructure and poverty reduction.

    “We commend the leadership of the NNPCL team for their resilience, dedication, and unwavering determination in executing this complex and challenging task.

    “As stakeholders in Nigeria’s energy sector, NEITI said that it remains committed to supporting NNPCL’s efforts to ensure the long-term success of these projects and to share the achievements with national and global partners, including the Extractive Industries Transparency Initiative (EITI) community.

    “NEITI stands ready to collaborate with NNPCL to sustain and expand these gains in the national interest and Nigeria’s energy security.”

  • NEITI endorses Tax Reform Bills

    NEITI endorses Tax Reform Bills

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has endorsed the 2024 Tax Reform Bill currently being debated at the National Assembly.

    NEITI in a memo on its position, signed by its Executive Secretary, Dr Orji Ogbonnaya Orji, and addressed to the leadership of the National Assembly and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms which is leading the reform process, identified areas needed to improve the policy gaps in the Bill.

    This was made known in a press statement by NEITI’s Communications & Stakeholders Management, Ag. Director, Mrs. Obiageli Onuorah issued yesterday.

    The statement said according to Orji, “The Bill has the potential to modernize Nigeria’s tax system, streamline and broaden its administration and tax base to align with global best practices”. 

    Orji said that NEITI’s observations followed a detailed review of the draft legislation, which showed extensive research and consultation to produce the innovative provisions that are being deliberated upon.

    The draft tax bill, NEITI noted, emphasized consolidation of legal frameworks, taxing digital assets, addressing resident and non-resident taxation, and introducing measures to curb tax evasion while demonstrating a strong commitment to fiscal transparency and efficiency.

    “A detailed review of the Bill revealed that it has the potential to impact positively on revenue generation, household livelihoods, job creation, and overall economic opportunities,” the transparency and accountability agency stated.

    As an agency with legitimate interests in the draft legislation, NEITI said “the public debate generated by the Bill underscored the overwhelming public interest by Nigerians and the need for greater clarity and trust in its provisions after it is finally passed into law”.

    Despite the potential of the Bill, NEITI said its section-by-section review of the draft law revealed its strengths and weaknesses, particularly as they affect the extractive industries, which is the core of NEITI’s specific mandate and thus made several recommendations to bridge the gaps in the implementation of the proposed law.

    According to NEITI, Sections 1 and 2 aim to ensure unified tax legislation across Nigeria for all individuals and legal entities. However, they do not have explicit guidelines to harmonize federal and state tax laws and clarify roles of subnational governments”.

    Commending the intent of the Bill on unifying tax administration in the country, by repealing existing Acts and consolidating them into a single framework, NEITI “stated that “Careful management of the transition process and robust public awareness campaigns were critical to avoid administrative confusion.

    On implications of the tax law for the Oil, Gas, and Mining Industries, including income, petroleum operations, VAT, and tax incentives, NEITI recommended the introduction of clauses to address issues of alignment with state tax systems and provide guidance for resolving jurisdictional conflicts.

    NEITI noted that the provision on taxation of digital assets aligned with global practices. The Agency called for clear definitions of the taxable assets, events, and valuation guidelines to be established to ensure effective reporting mechanisms and implementation, allowing for exemptions or phased implementation for small businesses, to support growth.

    On Resident and Non-Resident Taxation, NEITI commended the provision for significant economic presence but said it required clear criteria to avoid disputes and challenges in enforcement. While the provision requiring minimum effective tax rates for foreign subsidiaries was desirable to curb profit shifting, NEITI said collaboration with international tax authorities was essential for its success.

    The transparency and accountability agency stated further that it supported the provisions on taxation of undistributed profits, but advised that consideration must be given to small and medium enterprises (SMEs), to avoid disproportionate impacts on their businesses. The Agency also recommended the provision of exemptions for small businesses or startups to encourage reinvestment and growth, the stipulation of explicit thresholds for significant economic presence to simplify enforcement, and compliance with taxation of non-resident persons.

    On Benefits in Kind (BIK) and Employee Taxation, NEITI called for explicit guidelines to be established for valuing benefits like accommodation and other perks, to ensure smooth implementation and minimize disputes.

    Furthermore, NEITI noted the exclusion of partnerships and joint ventures in petroleum operations which presents a huge gap that should be addressed to ensure fairness and accountability in the extractive sector. On taxation of petroleum operations, NEITI called for the reduction of hydrocarbon tax rates for smaller operators to promote industry participation, expansion of incentives for carbon capture, and the introduction of incentives for renewable energy development projects and energy transition investments to align with energy transition goals.

    Describing the provisions on Stamp Duties and Value Added Tax (VAT) as comprehensive, NEITI observed that its enforcement in the informal sector and compliance burdens on SMEs remain concerns to be mitigated, while the success of efforts to provide relief on double taxations would depend on robust international agreements and institutional capacity to effectively implement the scheme.

    Also, NEITI called for the reassessment of tax rates for small-scale service providers, including the simplification of processes for compliance with Excise Duty on Services to ease their burden. NEITI recommended the implementation of robust digital tax administration tools to track, monitor, and prevent VAT evasion, compliance, and fraud. The Transparency Agency also called for simplified application procedures to be established and incentives expanded to include climate change mitigation and renewable energy projects and the provision of targeted incentives for renewable energy projects to align with energy transition goals.

    NEITI urged the National Assembly to expand exemptions under the tax incentives to include renewable energy and other sustainability projects, pointing out that emphasizing sustainability and environmental initiatives was limited and weak.

    Read Also: Governors back Tax Reform Bills, seek adjustment to VAT

    Other recommendations include the need to streamline application procedures and the provision of technical support for applicants for Economic Development Tax Incentives; definition of eligible sectors exemptions from Stamp Duties and VAT transactions for greater transparency as well as lower stamp duty rates for priority sectors to encourage investment.

    In terms of the general provisions, NEITI recommended investment in capacity-building for tax administrators and the adoption of data-driven monitoring systems.

    On Relief for Double Taxation and Taxation of Dutiable Instruments, NEITI recommended the inclusion of provisions for the establishment of a clear dispute resolution mechanism, possibly through tax tribunals for arbitration or negotiations. It equally called for the introduction of reduced rates or exemptions for priority sectors to encourage investment.

    NEITI therefore called for robust engagements with critical stakeholders, especially the civil society. The Agency offered to lead the engagements with the third sector on the reform Bill, given its experience in relationship management, goodwill and confidence building it has developed over time with the civil society.   

  • NEITI pledges excellent validation

    NEITI pledges excellent validation

    The Nigerian Extractive Industries Transparency Initiative (NEITI) has expressed the commitment to achieving an outstanding validation outcome by January 2026.

    Presenting the Progress Report on its Extractive Industries Transparency Initiatives (EITI) Implementation in Nigeria in Abuja, the National Coordinator of EITI in Nigeria and Executive Secretary of NEITI, Orji Ogbonnaya Orji, explained that apart from actively addressing the gaps in the EITI implementation identified during the 2023 Validation Exercise, NEITI has been working closely with the government, extractive companies, civil society, and the media to achieve meaningful impacts beyond the stated issues, demonstrating its commitment to meeting national and global obligations.

    Last January, a high-powered EITI Mission visited Nigeria to deliver the results of Nigeria’s 2023 Validation Exercise, assessing the country’s EITI implementation progress.

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    The EITI Mission’s report awarded an overall high score of 72 points out of a possible 100, highlighting several areas of commendable performance as well as key areas requiring remedial actions.

    The NEITI Executive Secretary outlined the primary areas needing corrective action, including the reconstitution of the National Stakeholders Working Group (NSWG), dissolved with other federal boards, strengthening civil society participation in the EITI process through open, transparent representation, and deepening NEITI’s engagement with extractive companies. Dr. Orji expressed satisfaction that these issues have since been addressed under an approved corrective action plan, reaffirming Nigeria’s dedication to the EITI principles.

    Speaking on behalf of the NSWG Chair, Amb Mathew Adoli expressed the optimism that with these corrective measures, the NEITI Secretariat is now stable, strengthened, and fully prepared to execute its 2024 work plan aligned with NEITI’s 5-year strategic plan.

    Minister of Solid Minerals Development, Dele Alake, at the public presentation noted that the Ministry would prioritise the report’s data to empower non-state actors and facilitate evidence-based engagement for government and company accountability. Represented by the Director General of the Solid Minerals Development Fund, he emphasised closer partnership with NEITI on ongoing reforms.

    The Auditor General pledged enhanced collaboration with NEITI for transparent public finance management, while Jonathan Gaza Gbefwi of the Solid Minerals Committee in the House of Representatives praised NEITI’s reports as critical legislative tools.

    Apart from reconstituting the NEITI Board, Ogbonnaya Orji shared progress in working with the NEITI Companies Forum and key government entities, reinforcing NEITI’s collaboration with companies and civil society within the extractive industries. He noted that civil society participation is now better organized, with leadership elected transparently by the constituency.

    On its Industry Audit Reports, Ogbonnaya Orji announced that the public presentation of the 2022/2023 Solid Minerals Industry Report demonstrated NEITI’s reporting was current and ready for stakeholder engagement. At the NEITI House Dialogue’s second edition, he highlighted the establishment of the NEITI Data Centre, a centralised platform for extractive sector data, analysis, and training, which supports compliance with EITI’s Open Data policy and NEITI’s Systematic Disclosure Program.

    The 2023 Solid Minerals Audit Report, the 16th audit cycle, provides a comprehensive overview of the sector’s contributions from 2007 to 2023, during which ₦1.137 trillion (about $3.86 billion) in direct payments was made to various government levels. The report shows a substantial increase in government receipts from ₦7.59 billion in 2007 to ₦341.27 billion in 2022, a 44-fold rise, indicating solid sector growth.

    “The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding ₦1 trillion”, the executive secretary stated, emphasising the potential for further growth as regulatory compliance and reporting continue to improve.

    Conducted by indigenous firm of Haruna Yahaya and Co., the Report covered the solid minerals industry’s economic contributions, revenue streams, and exports, providing recommendations for sector reforms. The report disclosed that in 2022, the sector generated ₦345.41 billion, with a reconciled final revenue of ₦329.92 billion.

    Company payments analysis indicated that total government revenue, including reconciled and unilaterally disclosed figures, reached ₦401.87 billion in 2023. Key revenue streams included VAT (₦128.32 billion), FIRS taxes (₦370.09 billion), Education Tax (38.64percent), Company Income Tax (10.64percent), and royalties (₦9.06 billion).

    Discrepancies initially amounted to ₦301.6 billion but were reconciled down to ₦100 million, demonstrating NEITI’s transparency commitment. Production and export data showed 95.07 million tonnes of minerals produced in 2023, with a significant export volume of 4.32 million metric tonnes, valued at ₦117.29 billion.

    The report highlighted top mineral-producing states, including Ogun, Kogi, and Rivers, with Ogun leading production. Revenue contributions were led by Osun, Ogun, and Kogi states.

    The report also identified the solid minerals sector’s GDP contribution at 0.83percent in 2022, with incremental growth to 0.75percent in 2023, underscoring untapped potential. It reiterated policy measures and reforms needed to unlock the sector’s capacity to contribute more significantly to Nigeria’s economic diversification.

  • Nigeria makes N1.37tr revenue from solid minerals

    Nigeria makes N1.37tr revenue from solid minerals

    The Nigerian Extractive Industries Transparency Initiative (NEITI) said the Federal Government raked in N1.37 trillion revenue from the solid mineral sector in 2023.

    Its Executive Secretary, Orji Ogbonnaya Orji made this known in a press statement issued on the presentation of the releases of 2022-2023 Solid Minerals Sector Report in Abuja.

    He said the “2023 Solid Minerals Audit Report, the 16th audit cycle, provides a comprehensive overview of the sector’s contributions from 2007 to 2023, during which N1.137 trillion (about $3.86 billion) in direct payments was made to various government levels.”

    Orji said the report shows a substantial increase in government receipts from N7.59 billion in 2007 to N341.27 billion in 2022, a 44-fold rise, indicating solid sector growth.

    “The 2023 report underscores the sector’s evolution into a vital revenue contributor for Nigeria, with cumulative contributions now exceeding N1 trillion,” Orji said, emphasizing the potential for further growth as regulatory compliance and reporting continue to improve.

    Conducted by indigenous firm Haruna Yahaya and Co., the Report covered the solid minerals industry’s economic contributions, revenue streams, and exports, providing recommendations for sector reforms.

     The report disclosed that in 2022, the sector generated N345.41 billion, with a reconciled final revenue of N329.92 billion.

    Company payments analysis indicated that total government revenue, including reconciled and unilaterally disclosed figures, reached N401.87 billion in 2023. Key revenue streams included VAT (N128.32 billion), FIRS taxes (N370.09 billion), Education Tax (38.64%), Company Income Tax (10.64per cent), and royalties (N9.06 billion).

    Discrepancies initially amounted to ₦301.6 billion but were reconciled down to ₦100 million, demonstrating NEITI’s transparency commitment.

     Production and export data showed 95.07 million tons of minerals produced in 2023, with a significant export volume of 4.32 million metric tonnes, valued at ₦117.29 billion.

    The report highlighted top mineral-producing states, including Ogun, Kogi, and Rivers, with Ogun leading production. Revenue contributions were led by Osun, Ogun, and Kogi states.

    The report also identified the solid minerals sector’s GDP contribution at 0.83per cent in 2022, with incremental growth to 0.75per cent in 2023, underscoring untapped potential. It reiterated policy measures and reforms needed to unlock the sector’s capacity to contribute more significantly to Nigeria’s economic diversification.

    According to Orji, NEITI is committed to achieving an outstanding validation outcome by January 2026, the Secretariat of the transparency-promoting agency has said.

    Presenting the Progress Report on its Extractive Industries Transparency Initiatives (EITI) Implementation in Nigeria in Abuja on Tuesday, Orji who is also  the National Coordinator of EITI in Nigeria and Executive Secretary of NEITI, explained that apart from actively addressing the gaps in the EITI implementation identified during the 2023 Validation Exercise, NEITI has been working closely with the government, extractive companies, civil society, and the media to achieve meaningful impacts beyond the stated issues, demonstrating its commitment to meeting national and global obligations.

    He recalled that last January, a high-powered EITI Mission visited Nigeria to deliver the results of Nigeria’s 2023 Validation Exercise, assessing the country’s EITI implementation progress. The EITI Mission’s report awarded an overall high score of 72 points out of a possible 100, highlighting several areas of commendable performance as well as key areas requiring remedial actions.

    Read Also: Australia to train solid minerals professionals 

    The NEITI Executive Secretary outlined the primary areas needing corrective action, including the reconstitution of the National Stakeholders Working Group (NSWG), dissolved with other federal boards, strengthening civil society participation in the EITI process through open, transparent representation, and deepening NEITI’s engagement with extractive companies. Dr. Orji expressed satisfaction that these issues have since been addressed under an approved corrective action plan, reaffirming Nigeria’s dedication to the EITI principles.

    Speaking on behalf of the NSWG Chair, Amb Mathew Adoli expressed optimism that with these corrective measures, the NEITI Secretariat is now stable, strengthened, and fully prepared to execute its 2024 work plan aligned with NEITI’s 5-year strategic plan.

    Minister of Solid Minerals Development, Dele Alake, at the public presentation noted that the Ministry will prioritize the report’s data to empower non-state actors and facilitate evidence-based engagement for government and company accountability.

    Represented by the Director General of the Solid Minerals Development Fund, he emphasized closer partnership with NEITI on ongoing reforms.

    The Auditor General pledged enhanced collaboration with NEITI for transparent public finance management, while Jonathan Gaza Gbefwi of the Solid Minerals Committee in the House of Representatives praised NEITI’s reports as critical legislative tools.

    Apart from reconstituting the NEITI Board, Dr. Orji shared progress in working with the NEITI Companies Forum and key government entities, reinforcing NEITI’s collaboration with companies and civil society within the extractive industries. He noted that civil society participation is now better organized, with leadership elected transparently by the constituency.

    On its Industry Audit Reports, Dr. Orji announced that the public presentation of the 2022/2023 Solid Minerals Industry Report demonstrates NEITI’s reporting is current and ready for stakeholder engagement.

    At the NEITI House Dialogue’s second edition, he highlighted the establishment of the NEITI Data Centre, a centralized platform for extractive sector data, analysis, and training, which supports compliance with EITI’s Open Data policy and NEITI’s Systematic Disclosure Program.