The Nigeria Extractive Industries Transparency Initiative (NEITI) has expanded its operations in the oil and gas industry to cover Commodity Trading.
At a workshop for relevant government agencies and oil trading companies, Executive Secretary of NEITI, who was represented by the Director, Communications and Advocacy, Dr. Orji Ogbonnaya Orji, explained that the decision to move into commodity trading is in line with the NEITI mandate and in compliance with Extractive Industries Transparency Initiative (EITI) 2016 global standards.
According to Dr. Orji,“the overall objective of NEITI’s interest in commodity trading is to improve transparency in the sale of the state share of production by government and state owned enterprises among others”.
He called on companies and government agencies involved in commodity trading to carefully study the developed templates by NEITI with a view to internalizing the new reporting requirements as part of their respective overall business model.
Participants at the workshop observed that NEITI’s decision to expand its operations to commodity trading was a welcomed development in view of the importance of transparency, fair competition and good business ethics.
They advised NEITI to focus on ensuring accurate data on production, accurate measurement of volumes of government equity crude oil including crude condensate, crude allocation for export and domestic use as well as accurate computation of in-kind revenues, taxes and royalty.
The representatives of government agencies, marketers and crude oil traders who attended the workshop also identified marketing contracts and related agreements, process of transfer of income from sales of equity crude, liftings and other similar transactions as other key areas in commodity trading where NEITI should pay attention.