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  • Less than 1% royalty from mining operations in Zamfara, Enugu worrisome, says NEITI

    Less than 1% royalty from mining operations in Zamfara, Enugu worrisome, says NEITI

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has expressed concern over the less than one per cent royalty that gold and coal mining contribute in Zamfara and Enugu states.

    Raising the concern in its 2021 Report on NEITI Solid Minerals Industry Audit – Impact on Blocking Leakages to Grow Revenue, the watchdog organisation said 19 states contributed less than one per cent each to the total royalty receipt in the year under review.

    It said Enugu produced 108,472 tonnes of minerals worth N3,293,900 royalties, representing 0.09 per cent of the states’ production, while Zamfara produced 152,331 tonnes of minerals worth N10,058,023 royalties, representing 0.28 per cent of the total states’ production.

    “However, it is concerning that 19 states contributed less than one per cent each to the royalty receipts.

    “Of particular note are Zamfara and Enugu states, which house two strategic minerals (gold and coal) in commercial quantities.

    “Given these states’ potential, they should be major contributors to the sector.

    “Yet, they appear to need more attention from the government, raising the need for further consideration and strategic initiatives to unlock their full mining potential,” NEITI said.

    The report said Ogun and Kogi states were the leading contributors to royalty, with receipts amounting to N642.07 million (17.98 per cent) and N496.67 million (13.91 per cent).

    NEITI stated that together, the states accounted for a significant share of production at 33.79 million tonnes (44.30 per cent). 

    “The main driver behind their royalty contributions was limestone, primarily mined by Dangote Industries, the largest company in the sector,” the report said.

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    The seven strategic minerals in the sector, according to the audit, contributed N1.42 billion (73.07 per cent).

    It noted that the commencement of full operations at the Dangote Cement plant at Okpella in Edo State has the potential to further increase the royalty revenue from limestone.

    But the Federa Government agency said the significant disparity in royalty contributions between limestone and the other minerals underscored the underperformance of the latter.

    NEITI sought efforts towards promoting and enhancing the exploration and production of the minerals to maximise their revenue potential and foster balanced growth in the solid minerals sector.

    It urged the Federal Government, through its Ministry of Mines and Steel Development, to urgently review the solid minerals roadmap to align it with current market realities and implement sustainable strategies for boosting revenue from other strategic minerals, like limestone.

    According to the report, the major challenge in revenue distribution from the solid minerals sectors lies in the absence of a sector-specific fiscal regime.

    NETI said: “…While the majority of revenue (over 85 per cent) is generated by the Federal Inland Revenue (FIRS), it cannot be distributed to states because it is difficult to link these taxes to specific activities within the sector, for instance, taxes paid on quarrying activities of construction companies.

    “As a result, only the revenue from the Mining Cadastre Office (MCO) and the Mining Inspectorate Department of the Ministry of Mines and Steel Development (MID) is shared among the states. Unfortunately, these revenues have consistently been low.”

  • NEITI raises concern over Zamfara, Enugu’s contributions to mining

    NEITI raises concern over Zamfara, Enugu’s contributions to mining

    Despite having gold and coal in commercial quantities, Zamfara and Enugu States respectively contributed less than one percent royalties to the Federation in 2021, and this has unsettled the Nigeria Extractive Industries Transparency Initiative (NEITI).

    Raising the concern in its 2021: “Report on NEITI Solid Minerals Industry Audit – Impact on Blocking Leakages to Grow Revenue,” the watchdog organisation expressed worry that 19 states contributed less than 1% each to the total royalty receipt in the year under review.

    It revealed that out that, Enugu produced 108,472 tons of minerals of N3,293,900 royalties representing 0.09% of the States production, while Zamfara produced 152,331 tons of minerals of N10,058,023 royalties representing 0.28% of the total States production.

    According to NEITI, “However, it is concerning that 19 states contributed less than 1% each to the royalty receipts.

    “Of particular note are Zamfara and Enugu States, which house two strategic minerals (Gold and Coal) in commercial quantities.

    Read Also: NEITI cries out over paltry N193.59b revenue from solid minerals

    “Giving these states’ potential, they should be major contributors to the sector. Yet, they appear to need more attention from the government, raising the need for further consideration and strategic initiatives to unlock their full mining potential.”

    The report said on the other hand, Ogun and Kogi States emerged as the leading contributors to royalty, with receipt amounting to N642.07 million (17.98%) and N496.67 million (13.91%), respectively.

    NEITI noted that together, these states accounted for a significant share of production at 33.79 million tons (44.30%). 

    The report said: “The main driver behind their royalty contributions was limestone, primarily mined by Dangote Industries, the largest company in the sector.”

    The seven strategic minerals in the sector, according to the audit, contributed a total of N1.42 billion (73.07%).

    It noted that the commencement of full operations at the Dangote Cement Plant in Okpella, Edo State, has the potential to further increase the royalty revenue from limestone.

    Besides, the watchdog organization, said however, the significant disparity in royalty contributions between limestone and the other minerals highlights the under-performance of the latter.

    NEITI sought efforts towards promoting and enhancing the exploration and production of these minerals to maximize their revenue potential and foster balanced growth in the solid minerals sector.

    It called on federal government through the Ministry of Mines and Steel Development, to urgently review the solid minerals roadmap to align it with current market realities and implement sustainable strategies for boosting revenue from other strategic minerals like limestone.

    According to the report, the major challenge in revenue distribution from the solid minerals sectors lies in the absence of a sector – specific fiscal regime.

    NETI notd: “While the majority of revenue (over 85%) is generated by the Federal Inland Revenue (FIRS), it cannot be distributed to states because it is difficult to link these taxes to specific activities within the sector, e.g., taxes paid on quarrying activities of construction companies.

    “As a result, only revenue from the Mining Cadastre Office (MCO) and the Mining Inspectorate Department of the Ministry of Mines and Steel Development (MID) are shared among the states. Unfortunately, these revenues have  consistently been low.”  

  • NNPCL, MDAs, others owe govt $9.85 billion

    NNPCL, MDAs, others owe govt $9.85 billion

    The total unremitted revenues to the Federation by some relevant government agencies and companies in the oil and gas sector  have risen to over $9.85 billion.

    This was contained in the 2021 Oil and Gas Industry Report by the Nigeria Extractive Industries Transparency Initiative (NEITI).

    Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji while presenting the highlights of the report, yesterday, stated that the information and data contained in the NEITI latest reports paid special attention to helping governments at all levels to shore up revenue, support national development and poverty reduction through resource mobilisation.

    The report therefore provided update on the financial liabilities of the Nigeria National Petroleum Company Limited (NNPCL) and some companies to the federation.

    He lamented that despite the concerted efforts made last year to recover some of the revenues through the Ad Hoc Committee that was set up by the National Assembly, the 2021 figures showed an increase.

    A compilation of the outstanding financial liabilities due to the Federation by the report indicated that a total of $13.591 million was payable to the Federal Inland Revenue Service (FIRS) as of July 31, 2023, while the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had outstanding tax collectible revenues of $8.251 billion as at December 31, 2022. Over 80 per cent of these outstanding financial liabilities are owed by NNPCL.

    The NEITI 2021 Oil and Gas Report presented yesterday in Abuja had as its theme: “NEITI Oil & Gas Industry Report 2021: Relevance built on revenue growth and impact” also made several vital disclosures in line with the NEITI Act 2007 and the EITI 2019 Standard.

    The report showed that Nigeria earned a total revenue of $23.046bn from the sector in 2021. The sum is about 13 percent higher than the corresponding total of $20.43bn realized in 2020.

    Breakdown of the earnings showed that about $8.67bn, or 37.6 percent of the revenue was realized from the sale of crude oil and gas; $13.37bn, or 58.02 percent, from taxes and other specific revenue flows, and $1.01bn, or 4.38 percent, went into payments to sub-national entities.

    An analysis of the total revenue realized, the report stated, showed unremitted revenues and quasi-fiscal expenditure by the NNPCL of $1.95bn (8.47%) and $6.93bn (30.08%) respectively. Transfers to the Federation amounted to $13.2bn (57.27%), while Sub-national payments totaled $963.63mn or 4.18%. Available revenue for sharing by the federating units after the deductions and in accordance with the revenue allocation formula was US$13.2billion which represented 57.27% of the total revenue collected. This is lower than the 71.7% shared in 2020.

    The quasi-fiscal expenditure of $6.931billion (equivalent of N2.651trillion) were deducted from the Federation’s revenue before remittance without appropriation by the National Assembly. A breakdown of the $6.93bn deductions showed payments of $3.52bn or 15 percent for Joint Venture Cost Recovery and $3.031bn (about N1.16 trillion) or 13.15 percent for products subsidy/value loss. Other deductions are $258.43mn for government priority projects; $75.51mn for pipeline maintenance and holding cost and $42.40mn for crude oil and products losses.

    The NEITI report also observed that none of the refineries was operational in 2021 despite spending about N200billion between 2020 and 2021 on refinery rehabilitation which was deducted from the Federation sales proceeds. These deductions the report reiterated, remains a heavy cost to Federation Revenue remittances.

    In addition, the report said about $1.95bn, or 8.47 percent of the total revenue was not transferred to the Federation Account by the NNPCL during the year under review. Breakdown of the withheld revenue included, $722.6million for NLNG dividend; $871.15mn from domestic crude sales, $859,583 miscellaneous revenue and  $286.42mn from export crude sales. $24.332million and $45.76million were withheld from transportation revenue and domestic gas proceeds.

    A ten – year trend analysis of financial flows from the oil and gas sector from 2012 to 2021 showed earnings of $348.63Billion.

    On crude oil production and exports, the NEITI report indicated that total metered crude oil production was 634.60 million barrels, out of which the nation lost 68.47 million barrels to production adjustment, measurement error, theft and sabotage. The figure showed a 13% reduction from the production volumes of 2020.

    The report pointed out that a total 29 companies suffered crude losses from theft and sabotage amounting to 37.57 million barrels. The decline in crude oil losses due to theft and sabotage from 39.08million barrels in 2020 to 37.57million barrels in 2021 was generally due to the decline in crude oil production during this period.

    On gas production and utilization, the NEITI report said a total of 2.74million standard cubic feet of gas was produced during the year, with the volume about 8.96 percent lower than the 3,013,634mmscf produced in 2020. Total gas utilized in 2021 stood at 98%, while 2% could not accounted for by the companies based on the templates submitted.

    With the nation’s gross domestic products put at about $434.17bn, the report said the oil and gas sector contributed about 7.24% to the GDP and $ 36.55 billion (N14.40 trillion Naira) to total exports of $ 47.31 Billion (N18.91 trillion). This represented 76.22 % of the total exports in 2021,  0.8% higher figure than in 2020. 19,171 employees were said to be working in the sector in 2021.

    Similarly, the total government revenue generated in 2021 was 10.75 trillion Naira to which the oil and gas sector contributed 4.358 trillion Naira. This represents about 40.55% of the total revenue compared to 51% in 2020. The higher export value in 2021 compared to 2020 was due to the increase in crude oil price in 2021 from $41.65 per barrel to $66.97 per barrel, the NEITI report disclosed. 

    NEITI also reported on the 2020/2021 marginal fields awards. It observed that NUPRC regulation expected all successful applicants whose names were in the Notice of Preferred Bidder Status to make payments for signature bonus prior to award. However, the report observed that the list of awardees contained names of companies that had not paid signature bonuses, with four companies whose names were not on the list of awardees making payment of signature bonuses.

    NEITI in the 2021 report also observed that majority of the oil and gas companies in Nigeria exhibit complex structures that shield the real identities of their owners, thereby limiting the impacts of efforts at beneficial ownership disclosures. NEITI called on the NUPRC to implement fully the relevant sections of the PIA on Beneficial Ownership reporting.

    Other copious recommendations made by NEITI in its 2021 report are that NNPC should transparently disclose details of the subsidy and the beneficiaries of the payments, render accounts on project eagle loans transaction and review and investigate all pre-export financing arrangements and other loan arrangements done in exchange for the nation’s crude oil and gas.

    NEITI also recommended that Government should commission a comprehensive audit of the PMS subsidy-related financial transactions between NNPC and the Federation, determine all liabilities and ensure accurate and verified data.

    Furthermore, the Agency noted the discrepancies in records by some relevant government agencies on transactions in the sector which it says raises concerns about the integrity and accuracy of the data and pieces of information disclosed by these agencies. It therefore called on the concerned agency to improve its data management processes and establish controls that would prevent future discrepancies and maintain data integrity.

    NEITI also drew attention to the practice of computing 13 percent derivation on the balance of revenue after deductions from the total collections which it advised should be discontinued. Rather, the 13% derivation should be based on total collections for the relevant period in accordance with Section 162(2) of the constitution of the Federal Republic of Nigeria.

    It finally stressed the urgent need to strengthen the remediation mechanisms and involve independent third parties to conduct detailed investigations where necessary, especially with the PIA now in place for effective monitoring of the implementation process.

    The report which was reconciled on behalf of NEITI by an Independent Administrator, Messrs Taju Audu & Co., had a total of 69 companies and 13 government agencies, the NNPCL, the Nigeria LNG and Nigeria Sao Tome Joint Development Authority with 23 revenue streams covered. One company, Lekoil Limited did not submit any information for reconciliation, but was captured to have paid over $7.76million.

    DR. Orji urged policy makers to take seriously the findings and recommendations of the NEITI oil and gas report and use the data for economic planning and reforms of the sector. To the civil society, he stated that the information is to support their advocacy and public debates as well as tracking of reforms in the sector with a view to holding government at all levels and companies accountable, ensuring that the revenues from the sector is utilised for the benefits of the citizens.

    The Secretary to the Government of the Federation, Senator George Akume represented by the Permanent Secretary, Political and Economic Affairs, Mrs. Esuabana Nko while unveiling the report reaffirmed the federal government’s commitment to support and deepen the implementation of the EITI in Nigeria.

    According to the SGF, “President Bola Tinubu’s administration is fully committed to the fight against corruption in the extractive industry in particular and in other sectors of the economy. As an Administration, we are convinced that the revival of our economy and the 8-point agenda that we recently unfolded cannot yield the desired result if we do not support and strengthen anti-corruption and reform oriented Agencies like NEITI”.

    She added that “The NEITI 2021 Industry Reports being unveiled is quite timely, coming when the present administration is fully committed to shoring up revenues through priority attention to attracting investments to the key sectors of our economy, the oil and gas sector being one of them”.

    Chairman Senate Committee on Oil and Gas Host Communities, Sen. Benson Agadaga, reaffirmed government’s commitment to implement the recommendations of the NEITI oil and gas report. “Be assured that the Federal Government will carefully study this important report and adopt it as a valuable working document as part of our overall reform programme for the oil and gas sector”, Sen. Agadaga stated.

    The Chairman Senate Committee on Petroleum Upstream Sen. Eteng Williams commended the vital role NEITI is playing and urged NEITI to continue to ensure revenue mobilization for the country now that subsidy is gone.

    The Chairman, House Committee on Petroleum Resources, (Downstream) Hon. Ikeagwuonu Ugochinyere (Ikenga Imo) pledged the support of his Committee to lay the report on the floor of the House and debate it extensively to ensure the implementation of the recommendations made therein, as enshrined in Sections 3 and 4 of the NEITI Act.

    “Working together, we will ensure the realization of government’s desire to diversify the economy for the attainment of alternative source(s) of revenue and clean energy, that will bring about the realization of the projected one trillion-dollar revenue for Nigeria in the next eight years.”.

    The Minister of Budget and National Economic Planning Sen. Abubakar Atiku Bagudu represented by the Permanent Secretary, Nebeolisa Anako stated that the data generated by NEITI will help the ministry in its planning mandate for the country.

    “The budget outlay for the country for the current national development plan for five years is N348trillion. Majority of this inflow is going to be from the private sector and the oil and gas sector is key to the realization of this goal”.

  • Over N4 trn FAAC allocations shared across three tiers by mid 2023, says NEITI

    Over N4 trn FAAC allocations shared across three tiers by mid 2023, says NEITI

    The three tiers of government- the Federal, States and Local Government Councils, shared a total of N4.37 trillion from the Federation Account as statutory revenue allocations between January and June this year.

    This information and data are contained in the latest report by the Nigeria Extractive Industries Transparency Initiative (NEITI) on the Federation Account revenue allocations for the first half of the year.

    Its Executive Secretary, Orji Ogbonnanya Orji, who announced the release of the report in Abuja, said total distributable FAAC allocations to the three tiers of government in the first and second quarters of 2023 stood at over N2.32 trillion and N2.04 trillion respectively.

    The NEITI quarterly review revealed that inflows into the Federation Account in the second quarter of 2023 declined by 23perecent and this affected the distributable revenue which fell by 12percent when compared with the total revenue disbursed in the first quarter. Each tier of government received more than N1 trillion over the six-month period.

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    A breakdown of the revenue receipts showed that the federal government received about N1.78 trillion, or 40.7percent, while the State governments received N1.5 trillion, or 34.5percent, and the Local Government Councils, N1.08 trillion or 24.8percent of the total distributable revenue for the period.

    NEITI further disclosed that a comparative analysis of the total allocations on a year-on-year basis in the corresponding quarters of 2022 and 2023 showed that the distributable revenue of N4.366 trillion shared by the three tiers of government between January and June 2023 was higher by about 16.7percent from about N4.05 trillion shared in the corresponding period in 2022.

    Consequently, the report revealed that the allocation received by the federal government over the period under review increased by 19.8percent to N1.78 trillion in 2023, from the N1.48 trillion in the corresponding period in 2022.Similarly, allocations to the State governments grew by about 11.2percent to N1.42 trillion in 2023 from N1.26 trillion in 2022, while allocations to the Local Government Councils rose by 16.8percent to N1.08 trillion in 2023, from N926 billion in 2022.

    The report said the increase in half-yearly allocations in 2023 was consistent with an upward trend from the previous period where the distributable revenue for the first half of the year rose by 16.7percent, from N3.47 trillion between January and June 2021 to N4.05 trillion in the corresponding period in 2022. Also, allocations to the Federal, States and Local Government Councils increased across the board by 8.8percent, 26.5percent and 14.2percent respectively.

    However, compared to the same period in 2022, the report showed that FAAC distribution in the second quarter of 2023 declined in absolute value, with total distributable revenue of N2.02 trillion being less by 13percent than about N2.16 trillion distributed in the second quarter of 2022.

    Further analysis of the disbursements to the states showed that Delta state received the highest allocation of N102.79 billion in the second quarter of 2023, followed by Akwa Ibom N70.01 billion, Rivers N69.73 billion, Lagos N60.64 billion and Bayelsa N56.34 billion.

    The total disbursements to these five states (N359.5 billion), or 35.9percent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion), while the cumulative allocation to the five states was also more than the share of allocation to 19 other states put together. The bottom 10 states received 17.3percent of the revenue shared in the second quarter of 2023.Nasarawa, Ebonyi, Ekiti, Gombe and Taraba states received the lowest allocations of N16.71 billion, N16.84 billion, N16.95 billion, N17.22 billion and N17.45 billion respectively.

    The report said four of the five states with the highest allocations, except Lagos, received a significant share of 13percent derivation revenue allocated to oil-producing states. The total disbursements to these five states (N359.5 billion), or 35.9percent of the total FAAC allocations, was more than the total allocations to the next 15 states (N349.3 billion), while the cumulative allocation to the five states was also more than the share of allocation to 19 other states put together.

    The bottom 10 states received 17.3percent of the revenue shared in the second quarter of 2023.The NEITI report stated that the bulk of the revenues to the federation account came from remittances from the three main revenue-generating agencies, Nigeria Upstream Petroleum Regulatory Commission (NUPRC), the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service (NCS).

    These revenues came through earnings from the different revenue streams, including oil and gas royalties, petroleum profit tax, and company income tax, value added tax and import & excise duties. Also, revenue remittances of about N1.84 trillion in Q2 2023 came from mineral and non-mineral sources, comprising of N809 billion, or 44percent from mineral revenue (mostly oil and gas) and N1.03 trillion, or 56percent from non-mineral sources.

    The report noted a huge gap between revenue disbursements from the oil and gas and solid minerals sectors, pointing out that this was a reflection of the perennial underperformance of the latter over the years.In terms of debt service obligations and the impacts on states’ net allocations, the report showed that Lagos topped the list of 36 states with a total deduction of N9.03 billion in the second quarter of 2023, followed by Delta (N6.76 billion), Ogun (N6.10 billion), Kaduna (N5.63 billion), Osun (N5.60 billion and Imo (N5.51 billion).Jigawa, Anambra, Nassarawa, Kebbi and Enugu States had the lowest deductions of N1.16 billion, N1.29 billion, N1.45 billion, N1.51 billion and N1.88 billion respectively.

    The nine oil-producing states, according to the report, namely Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo and Rivers states received allocations relative to their share of the oil and gas as well as other minerals extracted from their domains.

    Other states of the federation where solid minerals are exploited did not receive derivation revenue for the period. The lack of solid mineral revenue disbursement either for derivation purpose or statutory disbursement by other federation entities, the report said, was due to the fact that solid minerals revenues remitted to the Federation Account was not significant enough to be shared among the federal government as well as all the states and local governments, including the Federal Capital Territory.

    The NEITI report pointed out that Q3 2023 revenue projection would not differ too much from Q2 performance even with the crude oil output averaging 1.387 million barrels per day in June and July, and the average crude oil price at $83.03 per barrel between June 1 and August 15, 2023. It attributed this to the Federation Account disbursements that would be based on revenues earned in June, July and August.    

  • NEITI, BudgIT launch tool to detect conflict of interest

    NEITI, BudgIT launch tool to detect conflict of interest

    Nigerian Extractive Industries Transparency Initiative (NEITI), BudgIT Foundation, Transparency in Totality, and Directorio Legislavo yesterday launched a tool that cross-matches the data on beneficial ownership (BO) and politically exposed persons against oil, and gas and mining licenses in other to detect the existence of conflicts of interest.

    The tool is called “Joining the Dots with Politically Exposed Persons in Nigeria” (JTD).  NEITI Executive Secretary, Dr. Orji Ogbonnaya Orji, in his opening remarks at the launch in Abuja, explained that JTD- a web – based platform, will help to identify red flags in the licenses award processed in Nigeria’s oil, gas and mining sectors.

    Adejoke Akinbode of BudgIT noted that even if a country has all the data and it does not use the information, it amounts to nothing.

    She said “that is why we are here. We are gathered here today because partners had been working assiduously with NEITI jointly developed the tool worked together to ensure they bring the different data together to establish who is really controlling the financial agency in the country.”

    Orji added that the organizations that jointly developed the tool have two common strategic goals.

    He said the goals are to support the establishment of frameworks that will facilitate transparency and accountability in the country’s extractive sector.

    He added that the second goal is to contribute to the unfettered and public access to data on politically exposed persons (PEPs) in Nigeria.

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    Orji recalled that NEITI had long established BO as one of the tools that can be used for resource mobilisation, curb corruption, illicit financial flows and even terrorism financing.

    The Executive Secretary recalled that NEITI piloted the first BO reporting in 2013 and officially launched a BO register in 2019.

    According to him, at the global EITI level, all implementing member countries are required to report on the BO of the country’s Extractive assets. He added that globally, over 100 countries have made commitments to implement BO reforms.

    Orji noted that connecting the Dots project aligns with NEITI’s commitment to deepen beneficial ownership transparency through efficient use of information and data to make it more difficult for money launderers and other criminals to conceal their identities, assets, and criminal activities through the misuse of legal entities.

    He disclosed that in this regard, NEITI will work closely with partners on Connecting the Dot Project to strengthen public-private sector partnership in the implementation of benefit ownership (BO) disclosure requirements because NEITI firmly believe that a collaborative approach for obtaining, verifying, and holding beneficial ownership information involving all critical stakeholders can facilitate the adoption of trusted mechanism for determining real beneficial ownership of oil, gas and mining assets.

  • NEITI charges banks, others on financial disclosures

    NEITI charges banks, others on financial disclosures

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has  welcomed the growing interest of the organised private sector, banks and financial institutions in the implementation of beneficial ownership disclosures.

    Addressing a regional conference of Member-States of the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) in Accra, Ghana, Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji identified the involvement of the private sector, especially banks and other financial institutions as critical success factors to check illicit financial flows, money laundering and terrorism financing in the West African sub-region.

    NEITI’s Deputy Director/Head Communications and Stakeholders Management, Mrs. Obiageli Onuorah made this known in a statement in Abuja.

    The statement quoted Orji as saying: “the private sector especially banks and other financial institutions that provide safe havens for illicit financial transactions across national and international boundaries have strategic responsibilities to deploy use and share beneficial ownership information and data including adoption and aligning with transparency reform institutions like NEITI in risk assessment and adoption of progressive best practices in beneficial ownership transparency.

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    “NEITI is therefore delighted to be part of the regional forum of the Inter-Governmental Action Group Against Money Laundering in West Africa (GIABA) convened here in Accra, Ghana to discuss deeper engagements with the private sector, anti-corruption institutions, relevant security agencies and other EITI member countries to broaden the scope of beneficial ownership implementation”.

    The meeting resolved to deploy adequate information and accurate data to assist relevant competent authorities and the private sector, including financial institutions and designated non-financial institutions in their efforts to combat money laundering and associated predicate offenses.

    The regional meeting also resolved to take steps to ensure a balance between Beneficial Ownership transparency objectives and protection of citizens’ and individuals’ right to privacy and data protection.

    The meeting also resolved to seek required political support, engage in information sharing, public education and enlightenment to broaden the scope of implementation in member countries.

    Other resolutions include prioritization of the human capacity development, financial and technical resources mobilisation and management.

    To ensure compliance by reporting institutions and other private sector entities, the forum resolved to strengthen cooperation among GIABA member states on BO data verification.

    The forum recognized the important role of the Extractive Industries Transparency Initiative (EITI); Compliance Officers Forum of GIABA Member States; Compliance Institute, Nigeria; and Open Ownership in strengthening Beneficial Ownership transparency and its importance to public sector reforms.

    It therefore urged member countries within the GIABA region to take concrete steps to broaden and deepen implementation of public beneficial ownership disclosures as important tools to combat illicit financial flows, money laundering and terrorism financing for the peace and security of the sub region.

     Apart from the Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji, others who addressed the meeting were the Registrar General of the Corporate Affairs Commission, Alhaji Garuba Abubakar, Directors of Operation at the EFCC and ICPC, representatives of banks and financial institutions in Nigeria.

  • NEITI, Auditor-General partner on data sharing

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has pledged to work closely with the Office of the Auditor General of the Federation to promote integrity in data collation, validation and management on revenues from extractive industries.

    The Executive Secretary of NEITI, Mr. Waziri Adio, gave the assurance in Abuja while receiving the Auditor-General of the Federation, Mr. Anthony Ayine, on a courtesy   visit to seek collaboration and partnership.

    Adio expressed concerns over poor sectoral linkages in data generation, collation, management and dissemination on revenues generated or expended from oil, gas and mining sector.

    The Executive Secretary identified poor linkages among relevant agencies as major constraints in national planning, natural resource governance and public finance management. He said: “Our doors are quite open; NEITI is ready and willing to work with sister agencies on information and data sharing, capacity and manpower development. We are also ready to collaborate and partner with the Office of the Auditor General in particular and other similar agencies in general to promote data integrity, openness, standards and uniformity in data collation, validation management and utilisation.”

    He explained that “It is not just enough to be transparent; it is about being comprehensively transparent to ensure that the information is understood. Anything that will bring about transparency in the management of revenues we will give you all the support”.

    “We are working for the same purpose, we have to leverage on the strengths of the different agencies. We have done this for fifteen years and we have the information that will guide you in the extractive industry.” Adio added.

  • NEITI demands speedy action on PIGB, others

    The Nigerian Extractive Industries Transparency Initiative (NEITI) has advised the National Assembly to expedite action on the passage of the Petroleum Industry Governance Bill (PIGB), the Petroleum Administration Bill and the Petroleum Fiscal Bill.

    NEITI said the bills, if passed into laws, would enable institutions to be more operative and  accountable.

    NEITI said: “The incoming National Assembly should look at all pending issues in terms of legislation, institutional, process and others as contained in the NEITI reports and use them as tools and oversight in their various equipment with both companies and government.”

    Its Director of Communication and Advocacy, Dr. Orji Ogbonaya, in an interwiew with The Nation, on phone, said there was the need to automate the process of data gathering and analsisis in the organisation.

    He said NEITI’s Executive Secretary, Mr Waziri Adio, would be a leading delegation to the Transparency Initiative (EITI) conference in Paris, France this week.

    Also to attend the conference is NEITI’Chairman, Prof Bolaji Onosanya.

  • NEITI lauds NNPC, DPR others on compliance

    The Nigeria Extractive Industries Transparency Initiative (NEITI) has applauded its stakeholders in the oil, gas and mining sectors of the nation’s economy for implementing the principles of the global Extractive Industries Transparency Initiative (EITI). It said this had led to the ranking of the country’s as making “Satisfactory Progress”.

    Its Executive Secretary, Mr. Waziri Adio, expressed delight over cooperation extended to NEITI by government agencies including the Ministry of Petroleum Resources, Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue (FIRS), Department of Petroleum Resources (DPR), the Central Bank of Nigeria, Ministry of Mines and Steel Development and its agencies like the Mining Cadastre Office, Mines Inspectorate Department, were outstanding.

    In a statement, Adio also expressed appreciation to the companies under the canopies of Companies Forum, Miners Association of Nigeria and Oil Producers Trade Section (OPTS) operating in the extractive sector that had given NEITI  support during the validation.

    In addition, the civil society organisations including Publish What You Pay (PWYP), Media Initiative for Transparency in Extractive Industries (MITEI) and the Media among others had contributed in no small measure towards the ranking in the highest category of Nigeria by the EITI.

    “This highest ranking by the EITI is a major milestone for Nigeria and the invaluable roles of relevant millennium development agendas (MDAs), Companies and civil society organisations (CSOs) working to push for reforms in the sector are hereby duly acknowledged and deeply appreciated by NEITI,” he said.

    He said the current trend of reforms in the country’s extractive sector made possible by the determination and commitment of its stakeholders to see change happen in a sector that is considered for now to be the life wire and mainstay of the economy was one of the determining factors for the ranking of the country.

    Adio, who had earlier personally written letters to the different stakeholders to officially inform, congratulate and thank them about Nigeria’s achievement of the highest status in EITI implementation noted their support during the validation exercise which saw Nigeria make history again was  phenomenal and should be sustained.

    He reiterated the commitment of NEITI to continue to work closely with its stakeholders to push for reforms and enthrone transparency and accountability in the extractive sector in Nigeria.

    “On our part, we are committed to keeping Nigeria in this leadership position in the EITI community which our country voluntarily joined in 2003 and we will continue to crave your support to us as an organisation and to the full actualization of the NEITI mandate as enshrined in the NEITI Act 2007,” Adio said.

     

     

  • Federal allocation account now N8.5tr, says NEITI

    The Federation Allocation Account Committee (FAAC) has disbursed N8.5 trillion to the three tiers of government and others, the Nigeria Extractive Industries Transparency Initiative (NEITI) has disclosed adding it is the first time since 2014, that disbursements would exceed N2 trillion in three consecutive quarters. According to NEITI, the total of N8.52 trillion shared among the three tiers of government in 2018 represented 32.8 percent increase when compared to N6.418 trillion disbursed in 2017 and 67.1percent higher than N5.1 trillion shared in 2016.

    A further breakdown of the FAAC disbursements showed that the federal government received N3.483 trillion in 2018 representing 41percent while the 36 States received the sum of N2.85 trillion; representing 33.4percent and the 774 local governments got N1.667 trillion, representing 19.6percent. The Director of Communications and Advocacy, Dr. Orji Ogbonnaya Orji, said these pieces of information and data were contained in the latest edition of NEITI Quarterly Review which analysed disbursements from FAAC in 2018 and made revenue projections for 2019.

    On the states’ share of the FAAC disbursements, the review disclosed that five states received higher than N100 billion each in 2018. The States were Lagos (N119 billion), Bayelsa (N153.1 billion), Rivers (N172.6 billion), Akwa Ibom (N202.4 billion), Delta (N213.6 billion). The NEITI publication further disclosed that twenty-three states received less than N60 billion each as total FAAC receipts in 2018. A break down shows that Cross River, Ekiti and Ogun states received N37 billion, N39.3 billion and N39.6 billion respectively. Eight states namely: Zamfara, Gombe, Plateau, Kwara, Ebonyi, Nasarawa, Taraba, and Adamawa, received between N40 billion and N49.9 billion.

    The NEITI publication observed that government revenues had continued to be on the increase since 2017. “The rebound in federation revenue continued as a result of increases in both oil and non-oil revenue”, the review stated. A quarterly breakdown of disbursements in 2018 showed a steady increase in the amount disbursed throughout the year. For instance, in the first quarter of the year, FAAC shared N1.938 trillion, while N2.008 trillion was disbursed in the second quarter. Disbursements in the third and fourth quarters were N2.278 trillion and N2.299 trillion respectively.