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Tag: Nigeria Extractive Industries Transparency Initiative

  • NEITI, AuGF to 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 (AuGF) to promote integrity in data collation, validation and management on revenues from extractive industries.

    NEITI’s Executive Secretary, Mr Waziri Adio, gave the assurance in Abuja while receiving the AuGF, Mr. Anthony Ayine, during a 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.

    In a statement on Sunday, the organisation said 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.

    “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.

    Read Also: NEITI to engage NNPC regularly

    “We are working for the same purpose. We have to leverage on the strengths of the different agencies. We have done this for 15 years and we have the information that will guide you in the extractive industry.”

    The NEITI chief reminded the AuGF of the agency’s statutory responsibilities.

    Ayeni called for closer cooperation in data management and knowledge sharing towards efficient implementation of a World Bank-funded programme on fiscal governance.

    He said: “The World Bank-funded programme is to address fiscal management issues, which will help to strengthen accountability process of the nation’s economy. Five ministries, departments and agencies (MDAs) are participating. They include Auditor General’s Office, Ministry of Budget and Planning, National Bureau of Statistics, Bureau of Public Procurement, among others.

    “It is essential that the integrity of our national statistics is enhanced.”

    Ayine described NEITI as an institution of integrity, excellence on data generation, management and dissemination in the extractive industries.

    “It is very important and necessary that as institutions of the Federal Government that we create a structure whereby we collaborate and do our internal reconciliation of these figures for the integrity of our national data statistics,” he said.

     

  • 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.

     

     

  • Financial flow from oil, gas sector reduces to $17.05 in 2016 – NEITI

    The Nigeria Extractive Industries Transparency Initiative (NEITI) says that total financial flows from Nigeria’s oil and gas sector reduced to 17.05 billion dollars in 2016, indicating a 31 per cent decline on the 24.79 billion dollars generated in 2015.

    NEITI disclosed this in its 2016 Oil and Gas Audit Report released in Abuja on Friday.

    The report revealed that the decline was a 75 per cent plunge on the sector’s peak earnings of 68.44 billion dollars generated in 2011.

    It noted that the 2016 figure was the lowest in 10 years and the fifth lowest in the 18 years covered by NEITI’s audit reports from 1999 to 2016.

    The report blamed the plunge in revenue in 2016 on the low oil prices in the global market and reduced oil production in Nigeria, which in turn was caused by disruption and vandalism of oil assets and spike in crude theft, among others.

    It added that the yearly average price of crude oil per barrel stood at 43.73 dollars in 2016 as against 52.5 dollars in 2015.

    It said that a total of oil production in 2016 was 659 million barrels as against 776 million barrels produced in 2015

    This, it noted was a decline of 15 per cent.

    “The Nigerian Liquefied Natural Gas’ NLNG, dividend, loan and interest repayment for 2016 dipped by 63.5 per cent to $390.2 million, as against $1.07 billion recorded in 2015,’’ it added

    On crude oil theft and sabotage, it revealed that the country lost about 101 million barrels of crude oil to theft and sabotage valued at 4.4 billion dollars

    “Of the total loss, Seplat Petroleum Development Company and Shell Petroleum Development Company, SPDC, accounted for 81 million barrels of crude oil lost through sabotage, while 20 other oil companies recorded 19.8 million barrels lost to theft.

    “Losses due to crude oil theft and sabotage rose from 27 million barrels in 2015 to 101 million barrels in 2016, an increase of 274 per cent.

    “This was aside losses due to deferment, which in 2016 was put at 144 million barrels which also went up by 65 per cent when compared to the 87.5 million barrels in 2015,” it said.

    On cash calls and Joint Ventures (JV), the report said that 8.2 billion dollars was budgeted for cash calls in 2016, out of which 5.5 billion dollars was released and 4.9 billion dollars was paid.

    It added that Non-Joint Venture, JV, cash call expenses came to 874 million dollars, representing 17.59 per cent of cash call expenditure.

    It further revealed that the contribution of the oil and gas sector to Nigeria’s Gross Domestic Product (GDP) dropped from 9.5 per cent in 2015 to 8.3 per cent in 2016.

    On gas production, it said that total gas produced in 2016 was 3.051 trillion Standard Cubic Feet (SCF) out of which 288.209 billion SCF was flared, representing 9.45 per cent of production.

    “A total of 126 million barrels, valued at  5.48 billion  dollars or N1.37 trillion, was earmarked for domestic consumption, allocated as follows: 23 million barrels (18%) for refineries, 55.9 million barrels (45%) for Direct Sale Direct Purchase (DSDP), 36.6 million barrels (29%) for PPMC lifting and 10.4 million barrels (8%) for offshore processing.

    “From the money for domestic crude allocation (DCA), NNPC deducted the following upfront: N512 billion for JV cash call; N126.5 billion for pipeline repairs and maintenance; N99 billion for under-recovery and N20 billion for crude losses,” it said. (NAN)

  • FG has not compromised us in last two years, says NNPC

    …seeks determination of beneficial ownership

    The Nigerian National Petroleum Corporation (NNPC) on Wednesday said  that it has never in the last two years the Federal Government has not sought to compromise it. This according to its Group General Manager,  Crude Oil Marketing Division (COMD), Mr. Mele Kyari, who extolled the government that has given the corporation a room to operate transparently and also remain accountable, is unprecedented in the history of the corporation.

    He broke the news in his goodwill message at the Nigeria Extractive Industries Transparency Initiative (NEITI) stakeholders workshop on validation in Abuja.

    He said that “we have never had it this good in this country like since the last two years. In terms of transparency in our transactions, validation of our activities,  the unfettered and unobstructed participation of the SGF which has never asked us to do anything else different.

    “This is the most transparent government in this country. We have seen a lot of governments, and worked with a number of them, especially in the last two years, we put our cards in the table.”

    In his presentation titled “Deepening EITI implementation in Nigeria: Commodity Trading and Beneficial Ownership,” he pointed out that when asked of beneficial owners, trading companies present list of their shareholders registered with the Corporate Affairs Commission (CAC).

    He insisted that government needs to work with the NEITI to get beneficial a owners, noting that the banks could use the cash to trace the real owners of the companies.

    Continuing, he said that “we know that the names on companies registration in the CAC are just mere names of people who get commissions from real owners.

    “The closest we can get is to insist that companies give names of people who have at least 5 to 10% shares and you can consider beneficial owners.”

    Kyari however pointed out that should NNPC go beyond that, it would be seen to be doing the job of the Economic and Financial Crimes Commission (EFCC).

    According to him, the corporation is only interested in the beneficial owners for them to pay their proper tax and not for their crime.

    He however submitted that “for the first time during our last contract, we insisted that all companies declare beneficial owners and all of them gave a list of shareholders which is useless.

    “We need to have collaboration between the government, companies and banks to come to an agreement on the determination of beneficial owners.”

    Speaking, NEITI’s Executive Secretary, Dr. Waziri Adio, noted that the corporation has now changed for good. He said that the NNPC now honors invitation, which shows that nobody benefits from opaqueness while serving the public.

    He said although Nigeria has survived different validation exercises, the question remains whether NEITI’s reports have effected any social change in the country.

  • NEITI boss declares assets, says I have N3.8m in my account

    NEITI boss declares assets, says I have N3.8m in my account

    The Executive Secretary, Nigeria Extractive Industries Transparency Initiative (NEITI), Mr. Waziri Adio has declared his assets with N3.8million and $821 US in his account.
    His assets and that of his spouse are however worth N99,417,894.
    He said he has closed his foreign accounts which he operated at different times as a student or a fellow in the United States.
    Adio, who made the disclosures in a statement on his Assets Declaration Form, said he opted for a public declaration of his assets in order to practice what he preaches.
    He said he believes that “Public Officers should declare their assets publicly”
    The  statement said: “After 23 years of working in the media, in an international development agency, and as a consultant and an entrepreneur, I own the following assets declared in my Form CCB 1:
    “As at 30 March 2016, I had a total of N3, 810, 206 in accounts with Access Bank, Standard Chartered Bank and United Bank for Africa.
    • As at 30 March 2016, I had a total of $821 in domiciliary accounts in Access Bank and UBA.
    “The foreign accounts I operated at different times as a student or a fellow in the US are all closed.
    “One unit of a 3-Bedrooom bungalow in an estate in a suburb of Abuja bought in 2011 at N17.5m, renovated and currently valued at N25m;
    ” Two units of 3-bedroom flats built over 13 years (between 2000 and 2013) in Lambe, Ogun State, currently valued at N12m.
    ” Two plots together measuring 1000 sqm demarcated by a dwarf fence in Iwo, my hometown in Osun State, bought in 2013, valued at N700, 000;
    “Yet-to-be-located 600 sqm in a disputed estate in Sabon-Lugbe, Abuja bought in 2011 at N750, 000.
    “I have beneficial interests in the following private companies that I co-founded: Think Tank Consult Limited; SW4 Media Limited, Publishers of Metropole Magazine; Elan-Metro Foods Limited and the Cable Newspaper Limited, Publishers of TheCable online newspaper
    “I also have equity in two non-operational companies: Papyrus Media Limited
    • Bamisoro Media Limited
    “My vehicles are  VW Passat bought new in 2011 at N5.8m and BMW X5 2008 Model bought second hand in February 2016 at N3.3m
    “Household Furniture/Items: 9 KVA Hyundai Diesel Generator bought at N850, 000; 3 KVA Sunkam Inverter bought at N450, 000 and other household furniture, electronics, exercise equipment, artworks and others valued at N3.5m
    “Shares in Publicly Quoted Companies: “I have shares in Skye Bank, Sterling Bank and Staco Insurance, bought in 2008 at N2.5m now presently valued at N296, 610.
    “Assets of Spouse and Children: My wife runs two businesses: a salon and a bakery, with equipment and distribution vehicles all valued at N28.5m.
    “We have three children under 18 and they do not own any assets.”
    The NEITI Executive Secretary explained why he decided to declare his assets publicly.
    He said: “As required by paragraph 11 of the 5th Schedule of the 1999 Constitution and Section 15 of the Code of Conduct Bureau and Tribunal Act, I have submitted Form CCB 1. My Declarant ID is FGAO: 000512. Form CCB 1 is the Assets Declaration Form for Public Officers, which all elected and appointed public officers are mandated to submit to the Code of Conduct Bureau (CCB) on assumption of and departure from office. The CCB is empowered to verify the claims made in this form.
    “In the main, this is to ensure that public officers do not anticipatorily over-declare their assets and that they do not use public office to corruptly enrich themselves.
    “Asset declaration is thus not designed to be another perfunctory, box-ticking exercise. It is primarily a transparency and accountability instrument.
    “This is a potentially powerful sunshine mechanism that could help, in very practical ways, limit the incidence of corruption, one of the major challenges of our country. “However, the potency of this tool is gravely diminished, in my view, by the fact that asset declaration is made a secret affair and the public, on behalf of whom people are elected or appointed to hold public offices, is not given a viable role in the verification of the assets declared and is denied the fundamental right to know. This is another case of the ‘missing public.’ And it needs fixing.
    “Therefore, as we rightly seek new beginnings for our country, we need to reinsert and reassert the public in this transparency and accountability process by lifting the veil of secrecy from the declared assets of our public officers.
    “This I believe: all public officers should be made to declare their assets publicly; otherwise the impact of the assets declaration exercise is successfully neutered.”
    Adio said he also chose to emulate President Muhammadu Buhari, the late President Umaru Yar’Adua and ex-Governor Kayode Fayemi.
    He added: ” Following the notable examples of President Muhammadu Buhari and Vice President Yemi Osinbajo, the late President Umaru Yar’Adua, Dr. Kayode Fayemi (as governor of Ekiti State), Senator Shehu Sani, Dr. Joe Abah (the DG of the Bureau of Public Service Reforms) and Dr. Chidi Anslem Odinkalu (former Chairman of the National Human Rights Commission), I have chosen to release the highlights of my assets declaration form for four reasons.
    “One: though public declaration of assets is not mandatory, there is nothing in the Constitution or the Code of Conduct Bureau and Tribunal Act that criminalises or disallows or forbids public officers from publicly disclosing their assets.
    “Two: I have stated on record many times that public officials not publicly disclosing their declared assets turns the assets declaration exercise into a hollow ritual, most recently through an article I wrote as a columnist on the back-page of THISDAY on 7 September 2015, titled “Issues around Assets Declaration.” It is time to practice what I preach(ed).
    “Three: I believe, following in the immortal words of Mahatma Ghandi, that we should be the change we seek and, when called upon, we should strive to lead others by leading ourselves first, through the powerful force of personal example. “And four: as someone appointed to head NEITI, an organization saddled with the weighty responsibility of promoting transparency and accountability in our extractive sector, I and my colleagues need to demonstrate that we are not protected from the searchlight that we beam on others, that we are not excused from the standards that we hold others to.
    “We must be ready to push the boundaries of transparency and accountability, even and especially with ourselves. And we must be ready to embody and model the values that give meaning to and legitimize our important and necessary work of shining light in dark places and holding others to account,” Adio stated.