The Nation Newspaper

Tag: NEITI

  • NEITI, NiDCOM collaborate to promote women, gender equality

    NEITI, NiDCOM collaborate to promote women, gender equality

    The Nigeria Extractive Industries Transparency Initiative (NEITI) and the Nigeria in Diaspora Commission (NiDCOM) have agreed to establish an inter-agency cooperation to promote the career advancement of women in the two organizations.

    The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, and the Chairman of NiDCOM, Hon Abike Dabiri-Erewa agreed on the partnership at the NEITI House, Abuja at this year’s Women’s Day celebration.

    The inter-agency cooperation will cover capacity-building programmes, environmental, gender, and social-economic development challenges that frustrate women’s career advancement in public service.

    In his opening speech, the NEITI Executive Secretary, Orji described Women’s Day as a very important annual event for NEITI to join the rest of the World to highlight, identify and celebrate the valued contributions of women to national development generally and the Extractive Industries in particular.

    Deputy Director/Head Communications & Stakeholders Management, Mrs. Obiageli Onuorah made this known in a press statement yesterday.

    Read Also; I didn’t do BBL because I was scared of death – Tolanibaj

    The statement quoted Orji as saying: “It is a day to advocate for equity, inclusivity, gender justice, wider opportunities for women in the oil, gas and mining sectors in the areas of job opportunities, career advancement and security in the work environment”.

    The NEITI Executive Secretary underlined that the global Extractive Industries Transparency Initiative (EITI) standards particularly require implementing countries including Nigeria to promote greater diversity in decision-making, document and publicly disclose women’s participation, gender, social, and environmental issues in the extractive Industries.

    The goal of EITI Reports he added was to highlight the risks that women are confronted with in rural host communities where oil, gas and mining exploration activities take place, document such risks and the remedy required.

    Orji lamented that information and data from the NEITI Industry Report on women’s participation in the Extractive Sector remain quite discouraging and far from the national average. For instance, the 2021 Oil and Gas Industry Report employment data from 56 out of 70 oil companies disclosed that out of 19,171 employees, 15,639 or 82% are men while only 3,532 or 18%) of the employees are women. The disclosure is far from the national average of 35%. From the same gender balance data, all top high-level management positions in the industry are dominated by men.

    Dr. Orji announced that to reverse this negative trend through deliberate advocacy and engagements, NEITI under his leadership has deliberately created a Gender and Environmental Unit in the Policy, Planning & Strategy (PPS) Department. This Unit is set up to ensure women’s inclusion in extractive governance and EITI processes and report on the gender distribution and participation in the extractive sector issues.

    Addressing the special forum, the special Guest of Honour and Chief Executive of Nigeria in Diaspora Commission, Hon. Abike Dabiri-Erewa advised career women in public service to cultivate the culture of self-confidence, invest in self-education and skills development, discipline, integrity hard work, professionalism and passion to create public value in any given assignment. She advised all career women in public service to place priority attention to family above all other choices.

    Abike Dabiri explained that the inter-agency cooperation and partnership will help document and mobilise professional Nigerian career women in the Diaspora, especially from 57 EITI member countries to contribute in diverse ways towards national development.

    On the current Japa syndrome that pushes Nigerian youths in search of green pastures in foreign lands, Hon Abike Dabiri-Erewa advised those wishing to move abroad to seek adequate information and guidance warning that life abroad could be worse and more difficult than challenges at home.

    High-profile women in top positions from ministries, departments and agencies, the media, and civil society joined NEITI women to mark the day with inspiring speeches.

  • NEITI, tax committee to enhance public governance with data

    NEITI, tax committee to enhance public governance with data

    The Nigeria Extractive Industries Transparency Initiative (NEITI) and the Presidential Committee on Fiscal Policy and Tax Reforms (PCFPTR) have agreed to work in partnership and collaborate on deployment of reliable data, public disclosure to support ongoing governance and institutional reforms and public finance management.

    Rising from an elaborate meeting held at the NEITI House Abuja, the Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji and the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr. Taiwo Oyedele identified the importance of NEITI’s reports in the oil, gas and mining sectors and the deployment of accurate data as critical success factors in evolving enduring fiscal policies and tax reforms in Nigeria.

    Receiving the delegation, the Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji said NEITI’s key focal areas of improving Nigeria’s macro-economic environment, strengthening public expenditure management, structure, institutional and governance reforms to boost economic growth, create jobs and poverty reduction aligns closely with the mandates of the Presidential Committee.

    NEITI’s Deputy Director and Head Communications & Stakeholder Management, Mrs. Obiageli Onuorah made this known in a press statement yesterday.

    She quoted the NEITI boss as saying: “With the combined forces of the Presidential Committee and NEITI, Nigeria would benefit from shared knowledge, skills, information and data that informs best economic reforms and policy making”.

    He noted that NEITI is available to provide information and data as contained in the NEITI oil, gas, solid minerals and the Fiscal Allocation and Statutory Disbursement Reports and advised the Committee on the need to utilize the findings and recommendations contained in the NEITI reports to advance economic policy initiatives for the benefit of the citizens.

    Dr. Orji congratulated the Chairman of the Presidential Committee, Mr Taiwo Oyedele on his appointment to undertake such a critical task and pledged the cooperation of NEITI to support and ensure the success of their national assignment.

    Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms (PCFPTR), Mr. Taiwo Oyedele commended NEITI for the work that the agency is doing in the extractive sector and maintained that such efforts are the reason behind NEITI’s selection by the Committee as one of the key Agencies to support the Committee with data and information that will enable it to deliver on its assignment.

    He explained that the Committee has classified its work in three distinct categories including fiscal governance with particular attention to financial management, revenue generation, borrowing, spending as well as policy coordination at the national and sub-national levels.

    Others were on revenue transformation focusing on improving government revenues through improved mechanisms for taxing oil and gas and non-oil resources to transform the revenue profile of the Country.

    The Committee is also looking at oil and gas which is the core area of focus by NEITI as well as non-oil resources like the solid minerals sector which NEITI can support the Committee in the area of information and data.

    Oyedele further explained that the third pillar or mandate of the Committee is economic growth facilitation and competitiveness with focus on removal of impediments for businesses to thrive, growth, provide jobs and generate revenues.

     Oyedele announced that under the first phase of the Committee’s work which he classified as the ‘quick wins’, it submitted a report with over 20 recommendations to the President, 3 of which have been fully implemented.

    He highlighted that the Committee is in its second phase tagged critical reforms which among other things will require amendment of some existing Laws.

    Read Also: Rep Okojie affirms House support for NEITI to achieve Renewed Hope agenda

    The Committee is already engaging the National Assembly and sub-national government on the issues that concerns

    He hopes that the outcome of the Committee’s work will transform to revenue growth for Nigeria.

    The Presidential Committee extended special invitation to NEITI to be its partner and co-opted NEITI into the Committee in recognition of the knowledge, competence and integrity of the agency in helping the Committee to streamline fiscal policies, optimize tax structures, and improve revenue collection mechanisms.

    Mr Oyedele remarked “By harnessing data-driven insights and best practices, both entities will strive to create an enabling environment for investment, job creation, and economic growth.

    Furthermore, the collaboration will prioritise initiatives aimed at enhancing transparency, accountability, and integrity in the management of Nigeria’s extractive resources through promotion and facilitation of participatory and inclusive dialogue with stakeholders, engagements and information sharing, building trust, promoting responsible resource management and combating illicit financial flows.

    In reaffirming their commitment to driving meaningful change, the Presidential Committee and NEITI called on all stakeholders, including government agencies, industry partners, civil society organisations and the general public, to actively support and participate in these collective efforts.

  • NEITI churning out stale audit reports, EITI cries out

    NEITI churning out stale audit reports, EITI cries out

    The global extractive industries watchdog, Extractive Industries Transparency Initiative (EITI) at the weekend raised concerns over the staleness of the Nigeria Extractive Industries Transparency Initiative (NEITI) audit reports on oil and gas and solid minerals sectors.

    Addressing reporters in EITI delegation media briefing in Abuja, the Deputy Director, Bady Balde, noted that the data are always too old when NEITI releases them.

    He said, “The question I was expecting that I did not hear has to do with timeliness of the data from NEITI.

    “I assume you receive data from NEITI’s report, one of the matter of discussion we had here internally with Dr. Orji and his management team is the fact that data here in Nigeria is quite old by the time it comes out.

    “The latest data covers 2021, and it was published in September 2023.”

    Expressing dissatisfaction, the Deputy Executive Director said, “I assume, as members of the media, that that is far from satisfactory for you because you want to cover present relevant issues now but we are chasing after 2022 data.”

    He recalled that the Nigerian watchdog organisation released its latest reports (2021 audit reports on oil & gas and that of solid minerals ) in October last year.

    According to him, while Nigeria is lagging behind in producing the audit reports, countries as Senegal, Norway, and Zambia have released their 2022 reports.

    He revealed that by June, their 2023 audit reports will be in public domain.

    Ironically, according to him, NEITI is the most staffed organisation globally, with double of EITI staff strength.

    He disclosed that whereas EITI has 50 workers, NEITI has more than 100 workers in its employment.

    He therefore put a question mark on the capacity of the crowd of NEITI’s workforce.

    Balde said, “NEITI is by far the largest organisation by staff in the world. They have more than twice more staff than we have in our Secretariat.

    Read Also: Lagos bishop bags life jail for raping assistant pastor

    “We are 50 in number at the national Secretariat; here they have more than 100.”

    Responding, the NEITI Executive Secretary, Dr. Orji Ogbonnaya Orji, pledged that the 2022 and 2023 audit reports will be published in September 2024.

    He said the delay was due to some internal challenges such as lack of office accommodation.

    Besides, the EITI delegation also expressed concerns about the inconsistency in the publication of the Nigerian National Petroleum Company Limited financial audit report.

    EITI Technical Director, Mr. Alex Gordy tasked the NNPCL on regular disclosure of its operations and performance.

    He added that NNPC has promised to resume the publication because those publications would help shed light on things of accountability and transparency.

    He further revealed that NEITI and NNPC are to resume the remediation committee that used to be n place.

    Gordy added that the Secretary to the Government of the Federation (SGF) Senator George Akume has promised to expedite action to reconstitute the NEITI board, otherwise known as the National Stakeholders Working Group (NSWG).

  • NEITI debunks cover-up of information, data

    NEITI debunks cover-up of information, data

    The Nigerian Extractive Industries Transparency Initiative (NEITI) has described as fictitious, incorrect, false and frivolous the allegations that agency concealed information and data in its report.

    This is coming after the attention of the agency was drawn to media reports credited to a private company-ABZ Integrated Limited alleging that NEITI concealed some information in its 2021 oil and gas industry report.

    The unfounded allegations arose from deliberations of the House of Representatives Committee on Public Petitions where ABZ Integrated Ltd is also asking the National Assembly to compel the Federal Government to pay it 5percent “whistle blowers fee” as reward from recoveries that may arise from the spurious allegation.

    According to the statement: “NEITI hereby restates that the openness requirements of the stakeholders driven process of the global Extractive Industries Transparency Initiative (EITI) which NEITI is implementing in Nigeria does not provide any room for any concealment of information.  It is equally important to state that the NEITI process is not designed for any individual or group to seek financial reward or derive selfish benefits”

    NEITI explained that “We have already made comprehensive presentation that clearly addressed all the issues that were raised in the uninformed petition. The reason for our detailed response was to avoid any individual or group under any guise, misleading the House Committee, the National Assembly and the general public. NEITI in its response, clarified all the issues and prayed the House of Representatives to dismiss the petition as it affects the Agency because it is frivolous and has no merit“.

    For instance, on the issue of Cash Call Payments which the petitioner alleged were concealed, NEITI referred the petitioner to pages 104-107 of the NEITI 2021 oil and gas industry report already in the public domain and on its where detailed information and data on cash call payments and general management including recommendations were publicly declared in facts and figures.

    Similar disclosures were also common features in NEITI previous reports of the sector over the years.

    NEITI added that going through the petition from ABZ which a copy was forwarded to the agency; it observed poor quality, understanding, huge gaps and misconceptions in the contents of the said petition about the NEITI process.  NEITI said that it is concerned and considers it a matter of urgency for the petitioner (ABZ Integrated Ltd), to be helped, educated and enlightened on the basic principles, methods, processes and standards that guide the Extractive Industries Transparency Initiative (EITI) Reports, the multi-stakeholders’ framework involved and the responsibilities of government, companies and the civil society at every stage of the EITI/NEITI process.

    NEITI also considers it a distraction coming at a time that data from NEITI’s report has been internationally acknowledged and endorsed to be credible by the global Extractive Industries Transparency Initiative in its recently released report of Nigeria’s international assessment.

    Read Also: NEITI: Nigerians aid foreigners in oil theft, illegal mining

    In the assessment, Nigeria recorded its highest score of 90 points on data integrity, comprehensiveness of report, outcomes and impacts, contribution to economic growth and adherence to legal frameworks, a pointer to the enormous and painstaking efforts undertaken in generating the information and data contained in NEITI’s industry reports.

    It is also important to enlighten the petitioners that the tendency to seek financial entitlements from the NEITI process is a futile attempt at gold digging, likened to chasing the wind.

    While NEITI welcomes criticisms of its processes, the agency advises that such criticisms needed to be informed, constructive, facts and evidence based capable of promoting quality public debates. 

    NEITI therefore offers the petitioner free education, enlightenment and capacity building on the NEITI/EITI process, its overall target of incentivizing reforms that enables natural resource revenues to support national development and poverty reduction in our society.

  • Nigerians aiding foreigners in oil theft, illegal mining – NEITI

    Nigerians aiding foreigners in oil theft, illegal mining – NEITI

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that foreigners embark on oil theft, pipeline vandalism, illegal mining, and daylight stealing of solid minerals with the complicity of Nigerians.

    The Executive Secretary of NEITI, Orji Ogbonnaya Orji made this known in his remarks at the United Nations International Anti-Corruption Day 2023 in Abuja.

    According to him, the crime is masterminded by foreigners with the complicity of Nigerians.

    He said: “In this sector, Nigeria is still perhaps the only resource-rich country confronted with the peculiar challenges of oil theft, pipeline vandalism, illegal mining, and daylight stealing of our solid minerals, painfully by foreigners with the collusion of our citizens.”

    According to him, in oil theft alone, Nigeria lost over 619 million barrels of crude valued at $ 46.16 billion or N16.25 trillion Naira between 2009 and 2020.

    He added that the country lost 4.2 billion litres of petroleum products from refineries, valued at $1.84 billion at the rate of 140,000 barrels per day from 2009 to 2018.

    Orji said pipelines, critical national assets, were also vandalized as NEITI also disclosed in its reports. In the past five years, 2017 to 2021, Nigeria recorded 7,143 cases of pipeline breakages and deliberate vandalism resulting in crude theft and product losses of 208.639 million barrels valued at $12.74 million or N4.325 trillion.

    NEITI Reports, according to him, also disclosed that during the same period Nigeria spent over N471. 493 billion to either repair or maintain these pipelines.

    He said as a member of the Inter-Agency Task Team, NEITI believes collaborations and partnerships between stakeholders present here today can create innovative yet efficient and sustainable ways to proffer solutions to address the corruption issues plaguing the country.

    Orji noted that NEITI is committed to supporting the fight against corruption through the sharing of credible information and data to ensure that corruption is minimized if not eliminated, in the governance of Nigeria’s extractive sector and recommends the EITI model of multi-stakeholder consensus building and oversight as an option to implant accountability mechanisms in our governance institutions.

     He called on the stakeholders to have a robust discussion on issues that will centre on promoting transparency and strengthening accountability institutions to sustain peace, security, and the overall development of Nigeria.

    In his keynote address, the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, recalled that the Federal Executive Council (FEC) under President Muhammadu Buhari, at its 25th Meeting, held on 5th July 2017 approved the adoption of the National Anti-Corruption Strategy and directed the then Attorney-General of the Federation and Minister of Justice to come up with a robust implementation plan for the NACS 2017-2021.

    He said at the expiration of the NACS 2017-2021, the Federal Executive Council (FEC) on the 23rd November, 2022 considered and approved the extension of the NACS 2017- 2021 for a period of 4 years (2022-2026).

    Fagbemi said pursuant to the approval by FEC the Ministry in collaboration with the Inter-Agency Task Team (IATT) continued to interface with MDAs on the review of the NACS Policy document and the development of the NACS Action Plan for 2022-2026.

    The minister noted that the Framework for the implementation of the National Anti-Corruption Strategy is focused on five Pillars which serve as the driving force for both the public and private sectors.

    The pillars, he said, are Prevention of Corruption; Public Engagement; Campaign for Ethical Re-orientation; Enforcement and Sanction; and Recovery and Management of Proceeds of Crime.

    Read Also: OPTS, NEITI partner on transparency

    Fagbemi also noted each of the Pillars will be implemented under the following headings: Strengthening the Legal and Institutional Framework Designed to Prevent and Combat Corruption; Mainstreaming Anti-Corruption Principles into Governance and Service Delivery; and Mainstreaming Anti-Corruption into Sub-national Public Administration.

    The head of the Technical Unit on Governance and Anti-Corruption Reforms (TUGAR), Mrs. Jane Onwumere noted that the 9th of December is a day designated globally to raise awareness on the negative effects of corruption on diverse aspects of our lives, and to restate commitment to the fight against corruption.

    She said this year represents the 20th year of the adoption of the United Nations Convention against Corruption by the UNCAC.

     She revealed that Nigeria was one of the early signatories to the Convention and has since shown commitment to the fight against corruption by making sure our treaty obligations are fulfilled.

  • OPTS, NEITI partner on transparency

    OPTS, NEITI partner on transparency

    The Oil Producers Trade Section (OPTS) has volunteered to work with the Nigerian Extractive Industries Transparency Initiative (NEITI’s) in its drive to deepen the pursuit for transparency and accountability in the oil and gas and mining value chain.

    The OPTS Executive Director, Gwueke Ajaifia made this pledge at the NEITI-Companies Forum Meeting with the theme: Deepening and Strengthening Engagement in Nigeria’s Extractive Sector, in Lagos.

    Ajaifia also expressed   the readiness of OPTS in meeting the required financial contributions to bringing the industry together to achieve its goal.

     Ajaifia said going forward, OPTS will be more efficient, more committed for others to follow suit.

        He said : “ For us in the OPTS, we are very interested in NEITI, we are on the board of NEITI, but beyond that it is in our own interest to be able to show people what we are doing because transparency will help prevent corruption and mismanagement.

        According to Ajaifia ‘if I know clearly that my activities will be seen by the public then I will be careful in what I do in the industry’.

        The executive director who noted that corruption thrives very well in areas where there is no transparency , observed  that the industry is very important in that regard because ,  so much money  is earned for the country , for which  people deserve to know what they are spent on.

        “We are actually creating wealth for the country, but this wealth people must see how it comes in, how it’s used to decide whether it’s judiciously applied”, he added.

        He said although the OPTS interfere with NEITI at all levels, sometimes giving data when they request for it but never understood what was on the on the other side. He said any society that does not have data information cannot grow, data and information are very key he added.

    Read Also: NEITI, NUPRC clarify 2020 marginal fields’ awards

        “With data you can plan, you can understand the trend of things, so in our society people just do things without planning; NEITI will help us develop our mindset. Beyond having data, having the right data is also very important because if you use the wrong data you end up in one direction”, he stated.

        He said  those in the industry should be interested in what happens in it, adding that the oil and gas industry is the biggest provider of foreign exchange for the country and so if people have a wrong perception of what they see outside then it will not help the industry.

        That’s why we should be interested in being very active in this kind of forum so that we will help NEITI to get the right data. He said that as key stakeholders of those in the oil company OPTS will ensure that the next forum will be well attended, I just want to repeat that NEITI important for everyone, he reiterated.

        “So for our own part we have a role to play, myself and colleague we have been talking about it, we need to reach out to members of the industry forum to reestablish their commitment and make sure that the next forum will be one that will have everybody so that at the end of the day it will be a win, win situation, the executive director stated.

        The Executive Secretary of NEITI, Orji Ogbonnaya-Orji, said the objective of the forum was to at least emphasize the importance of this forum. He said that the forum was put together to create opportunities for companies to examine the work NEITI is doing, ask questions where they needed to and seek clarification without writing letters.

        Again, it’s for them to also understand what their jobs are adding that participation in NEITI has implications on the corporate reputation of the company globally and also has implication on investment decisions.

        He said NEITI is that review mechanism on how to attract transparency, accountability and good governance. What we are set up to do is to encourage, create enabling environment for companies and we as member of 67members countries, whatever happens here is transferred to 67member countries around including the G7 countries.

        The executive secretary said  the agency will also want to engage in series of trainings with the OPTS to be able to know truly who NEITI is and also understand what the agency is not doing right, that it could do better and then seek their views on how to improve. “The forum will have to be creative, it’s already creative, strengthened and put in place for that to happen”, he stated.

        “We thought today would have been a day to expose you to the recent reports we released and then we also thought we could use the opportunity to discuss some of the opportunities and challenges and how to strengthen the OPTS participation, mining participation and the participation of all the companies in the process but that will have to wait until when we have the right forum”, we will work with the OPTS to bring the forum back, Orji stated.

  • NEITI, NUPRC clarify 2020 marginal fields’ awards

    NEITI, NUPRC clarify 2020 marginal fields’ awards

    The Nigeria Extractive Industries Transparency Initiative (NEITI) and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), have clarified concerns around the 2020 marginal fields awards.

     According to NEITI, the 2020 marginal field bid exercise was commenced by the now-defunct Department of Petroleum Resources (DPR) and not the NUPRC and its current management team.

     “From our records, the bid exercise for the marginal field was launched on June 1, 2020, while the NUPRC was set up in August 2021 and the management team of the commission was appointed about September/October same year.

    “NEITI, therefore, would rely on its ongoing 2022/23 Oil and Gas Industry Reports to ascertain in details and with evidence how the exercise was fully conducted and finalised,” NEITI said, adding that its next oil/gas industry report covering the period in question should be ready in 2024.

    Meanwhile, the upstream regulator, on its part, corroborated NEITI’s clarification in a statement it issued. According to the NUPRC management, the bid exercise launched on June 1, 2020 involved 57 marginal fields for bidding through a transparent online electronic bidding system.

    “Of the total number of companies which indicated interest in the bid exercise by submitting their applications within the deadline set for submission of applications, 540 companies were pre-qualified in line with the procedure set out in the bid guidelines. Ultimately, 482 companies out of the 540 companies pre-qualified submitted bids for the various fields on offer,” the NUPRC statement read.

    It noted that at the end of the exercise and in line with existing government policy to encourage as many qualified Nigerian companies to participate in the upstream business, 161 entities from the 482 companies that submitted bids were offered marginal fields and given a deadline to make signature bonus payments.

     “A number of these entities were offered fields on a joint basis with others. The commission upon inception had to embark on extensive stakeholder engagements with the successful bidders to resolve the many issues arising from the policy of jointly awarding some of the fields to several awardees,” NUPRC stated.

    Read Also: NUPRC to penalize firms for failingto deliver crude for domestic refining

     On the signature bonus, the commission stated that a number of the entities that were offered fields in the exercise were unable to fulfil their award obligation to pay the signature bonus within the time frame specified for the payment of the bonuses.

     “Hence, the commission sought and obtained the approval of Mr. President to re-award the interest not paid to other entities who participated in the bid exercise but who were not offered any fields during the initial stage of offering the awards.

     “These later awards were premised on the condition that those companies present clear evidence of both financial and technical capability. At the end of the entire exercise, a total of 55 fields were successfully awarded and paid for.

     “The provisional award letters issued to qualified bidders (which contains the terms and conditions of the award, including the signature bonus payable), in all cases, and final letters of the award were only issued upon payment of 100 per cent of the signature bonus by or on behalf of the awardee,” NUPRC stated.

  • Revenue agencies remited N14.38tr to Federation Account in 2020, says NEITI

    Revenue agencies remited N14.38tr to Federation Account in 2020, says NEITI

    The Nigeria Extractive Industries Transparency Initiative (NEITI), yesterday said that the Federal Government revenue generating agencies remitted about N14.38 trillion as revenue from the extractive sector to the Federation Account (FA) between January 1, 2020 and December 31, 2021.

    The agencies include the Nigerian National Petroleum Company Limited (NNPCL), the Nigerian Upstream Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS), the Ministry of Mines and Steel Development (MMSD), and the Nigeria Customs Service (NCS).

    A breakdown of the remittances showed that mineral revenue accounted for ?6.40 trillion, representing 44.5 percent of total remittances for the period, while other non-mineral revenue (excluding VAT) contributed ?4.80 trillion (about 33.37% of total remittances).

    Read Also: NNPCL explains FAAC claim, NEITI’s 2021 report  

    These information and data are contained in the latest Fiscal Allocation and Statutory Disbursement (FASD) report published by the NEITI for the period 2020-2021.

    ducing states after the deduction of excess petroleum profit tax (PPT) and Royalty.

    The nine oil-producing states include Abia, Akwa-Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers.

    A breakdown of the disbursements showed that while the Federal Government received about ?2.80 trillion, the 36 state governments got ?1.45 trillion, and the 774 Local Government Areas received a total of ?1.17 trillion.

    The report noted 2021 as the year with the highest revenue distribution across board, with 2.0 percent increase between 2020 and 2021.

  • NEITI urges transparency in oil, gas, mining sectors

    NEITI urges transparency in oil, gas, mining sectors

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has engaged the international communities for collaboration to enhance transparency in the oil, gas, and mining sectors.

    At a meeting with the Executive Secretary, Orji Ogbonnaya Orji, prominent diplomatic missions in Nigeria pledged their support and readiness to strengthen NEITI’s commitment in offering technical assistance, pursuing governance reforms and deepening its involvement in Nigeria’s oil, gas, and mining sectors.

    The diplomatic missions include the Ambassador of the Kingdom of Belgium to Nigeria, Mr. Pieter Leenknegt, the High Commissioner of Canada, James Christoff, and the Chargé d’Affaires of the Australian High Commission, Ms. Leann Johnston.

    The Ambassadors explained that they had closely followed NEITI’s reports and activities in the extractive sector with keen interest. They also commended Nigeria’s commitment to implementing the global Extractive Industries Transparency Initiative (EITI).

    The Ambassador of the Kingdom of Belgium to Nigeria, Pieter Leenknegt, particularly commended the quality and depth of NEITI’s recently released 2021 Oil, Gas, and Solid Minerals Industry Reports, praising the groundbreaking disclosures on outstanding remittances to shore up government revenue, the incisive findings and recommendations, and NEITI’s overall courage in public disclosures to enhance transparency and accountability in the sector.

    The Belgian envoy pledged his country’s support to NEITI, with a focus on capacity building to expand its operations into the Solid Minerals sector in a manner that attracts investors, especially from Belgium. Leenknegt expressed the contentment with the meeting, recognizing Belgium’s interest in the global implementation of EITI.

    The High Commissioner of Canada, James Christoff, welcomed Nigeria’s implementation of the EITI and identified the Solid Minerals sector as an area of special interest to Canada. He emphasized that collaborating with a reputable agency like NEITI would provide his mission with reliable information and data to assist potential Canadian investors in making informed business decisions.

    Read Also: FG to partner southeast governors to end insecurity, develop region

    Christoff noted that as a supporting country to the global EITI, the Canadian High Commission in Nigeria is willing to partner directly with NEITI in the areas of information and data sharing, training, capacity building, and providing technical support.

    The High Commissioner expressed his contentment with NEITI’s close collaboration with Civil Society and the Federal Ministry of Solid Minerals Development in combating illegal mining activities through policy reforms and coordination.

    The Australian High Commission Chargé d’Affaires, Leann Johnston, welcomed Nigeria’s new policy on economic diversification and expressed confidence in NEITI to support this initiative with reliable information and data in the Extractive Industries. She noted NEITI’s reports so far inspired confidence.

    Ogbonnaya Orji reaffirmed the agency’s commitment to tackling obstacles and working with relevant ministries to open the solid minerals sector to the public engagement and debate required to implement groundbreaking reforms. He said NEITI would support the Ministry of Solid Minerals Development in reforming and repositioning the sector as an alternative revenue source.

    The executive secretary described NEITI’s international affiliations, civil society partnerships and government ownership as major strengths. He stated NEITI would prioritize the solid minerals industry, which contributes less than 1percent to the gross domestic product (GDP).

    Ogbonnaya Orji expressed the delight in the renewed interest and support from the Belgian, Canadian and Australian embassies.

  • NEITI seeks review of 30% deduction from oil, gas profit

    NEITI seeks review of 30% deduction from oil, gas profit

    Nigeria Extractive Industries Transparency Initiative  (NEITI) has urged the Federal Government to review the provision of sections 64 (C) and 9 (4) of the Petroleum Industry Act  (PIA ), which provides for 30 per cent fee deduction from oil and gas profit by the Nigerian National Petroleum Company Limited  (NNPCL).

    NEITI 2021 Oil and Gas Industry Audit Report, which made this recommendation, noted that the section “does not provide clarification as to what percentage goes for frontier exploration fund and NNPCL management fee.”

    The watchdog organisation also indicated that the provision of Section  54 (1) of the PIA 2021 provides that the Minister of Petroleum Resources and the Minister of Finance shall within 18 months of the effective date of the identity and transfer assets, interests and liabilities of NNPC to NNPCL,  the provisions of the law has not been effected.

    NEITI disclosed that despite the failure to transfer the assets, “NNPCL has taken over all the federation assets in the JVs and operation as a business entity.”

    On 13 per cent derivation, NEITI revealed that the practice of compounding 13 per cent derivation on the balance of revenue after deductions from the total collections is contrary to the intention of the derivation objectives.

    “The practice of computing 13 per cent derivation on the balance of revenue after deductions should be discontinued.

    “Rather, the 13 per cent derivation should be based on total collections for the relevant period in accordance with section 162 (2) of the Federal Republic of Nigeria,” the report stated. 

    According to NEITI, there is discrepancy in Premium Motor Spirit (PMS) importation between NNPC and the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) records.

    It added that “The volume of PMS imported in 2021 under the Direct Sale and Direct Purchase (DSDP) arrangement based on NNPC’s records was significantly different from the volume of PMS imported as per NMDPRA records.”

    Read Also: Same product, different prices: Agonies of Nigerians paying more for fuel

    NEITI revealed that the implication of the discrepancy between the records indicates that there is no independent third-party confirmation of product importation volume and subsidy value.

    The audit insisted that “The discrepancy in the volume of PMS imported and subsidy value should be investigated.”

    NEITI was also worried about the conversion of Federal Inland Revenue Service (FIRS) tax oil and Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

    The report noted that about 90 per cent and 46 per cent of Production Sharing Contract (PSC) and FIRS – Tax oil and PSC NUPRC Royalty oil cargoes were respectively borrowed and converted to DSDP.

    It added that the sales proceeds in dollars were originally meant to be remitted to the respective FIRS and NUPRC designated accounts within 30 days otherwise penalties will apply.

    NEITI, however, disclosed that “NNPC applied a 90 – day.”

    The implication, according to NEITI, is loss of revenue in the sum of $34 million to the Federation as a result of remittance of sales proceeds of PSC royalty in Naira without applying appropriate exchange rate advised by the Central Bank of Nigeria (CBN).”

    The report revealed that NNPC responded that due to National Energy Security Demand, Federal Government directed in addition to traditional 455,000 barrels allocated for domestic consumption, NNPC could utilize royalty and tax oil