NEITI presents 2019 oil, gas, solid minerals audit reports

By Ambrose Nnaji

The Nigeria Extractive Industries Transparency Initiative (NEITI) has presented the 2019 oil, gas and solid minerals audit reports recently published by the agency.

The Executive Secretary, Dr. Orji Ogbannaya Orji while presenting the reports to the Media and Chief Executives Officers, in Lagos said that the audits covered financials, physical and process issues and provide detailed, reliable information and data on financial flows from the extractive companies to government.

The exercise also examined fiscal and process issues that characterized business activities in the industry within the year under review. Besides, the two reports presented salient observations, insightful findings and recommendations.

It is important to note that the publication of these reports is the outcome of painstaking exercise, involving data collection, data validation, data reconciliation among others.

According to him, the reports were based on information and data mandatorily provided to NEITI through the independent auditors by relevant government agencies and companies doing business in the sector during the period under review.

He said: “Let me reiterate the Extractive Industries Transparency Initiatives (EITI) philosophical base that when information and data on revenue from extractive sectors are publicly available and accessible, the citizens, civil society groups and media will be in a position to ask informed questions on the management of these resources to address the country’s socio-economic problems and poverty reduction.

The civil society and media thus play very important roles in the EITI process, particularly, in the areas of dissemination of the reports’ findings, campaign and advocacy on the implementation of the recommendations contained in the reports”.

Ogbonnaya Orji therefore said that the event had been designed to expose participants and stakeholders to the contents of the reports, including their key findings and recommendations to enable different stakeholders play their expected roles in the EITI implementation.

“I wish to use this opportunity to reiterate the commitment of the NEITI management under my leadership to translate the content of our reports to visible impacts in the lives of all Nigerians”.

He said that the public presentation was directly linked to the commitment and thrust of the current NEITI’s management to translate its activities into concrete impacts in the life of Nigerians.

Thus, NEITI’s Focus and the theme of the present Management is “Relevance built on revenue growth and visible impacts”.

It will interest you to know that Nigeria chairs the global EITI committee on Contract Transparency. NEITI seeks to work with companies, Chief Executive Officers, media and government to push the boundaries of openness in the drafting, content and management of contracts that guide funding and the financial regimes in Nigeria’s oil, gas and mining sectors.

We have already commenced the discussions at higher levels to agree with key interests what to disclose, when to disclose, how to disclose and why in a manner that is positively impactful and aligns with our vision of promoting investments and revenue growth.

The NEITI boss said that the agency had been in talks with the Nigeria National Petroleum Corporation (NNPC), the Department of Petroleum Resources (DPR), and the Ministry of Mines and Steel Development.

“I am also here in Lagos to meet with companies under the platform of the Oil Producing Trade Section (OPTS). Our focus is equally on beneficial ownership disclosures because of its wider implications to promoting good business trust, checking illicit financial flows, terrorism financing, capital flight and fraudulent practices” adding that Nigeria was chosen as one of the pilot countries to implement beneficial ownership disclosures.

NEITI is also consulting widely with stakeholders to seek inputs to review and amend the NEITI Act enacted since 2007. There is urgent need to update the law to meet with unfolding developments in the industry especially in a possible post PIB regime. NEITI is also reviewing its strategic plan and has set September this year as deadline to unfold a new plan.

He said that the plan would set broad policy guidelines that chart clear policy direction for the agency for the next five years. Our annual work plans and budgets provisions would be driven by our strategic plan to be unveiled in two months, he added.

He appealed to the National Assembly to hasten the outstanding processes and present the Petroleum Industry Bill (PIB) to the President for consideration and assent. “NEITI strongly believes that concluding the remaining process in the PIB is what is needed now to table new agenda for the oil/gas industry. We seek deeper engagements with companies, media and the civil society on a new emerging industry when the PIB eventually becomes law”.

He also urged the civil society, media and other critical stakeholders to take seriously the contents of the reports and play their expected roles in the EITI/NEITI process by demanding that the recommendations made in the reports are implemented and followed through by the affected relevant government agencies and companies.

He commended the companies and government agencies covered by the audits for living up to expectations and fulfilling the EITI requirements and provisions of NEITI Act, 2007.

Under the NEITI Act 2007, the Agency Is required to conduct and publish regular audits of the extractive industries – oil, gas and solid minerals sectors.