NEITI To Release 2021 Industry Audit Reports In June

By Stephanie Odiase

The Nigeria Extractive Industries Transparency Initiative (NEITI) says its independent oil, gas and mining sectors audit report covering the period 2021, will be released next month, as well as the Fiscal Allocation and Statutory Disbursement audit.

The agency explained that the ongoing nationwide audit of the oil, gas and mining industries covering 168 extractive companies and relevant federal agencies, are currently at the data reconciliation stage.

Executive Secretary of NEITI Dr. Orji Ogbonnaya Orji, explained that the objectives of the reports are to establish the quantities of minerals produced, utilized in the country and the quantity of crude legally or illegally exported or stolen.

The reports also seek to establish the revenue paid by oil, gas and mining companies and how much of such revenues were actually received into government coffers. It would also identify investments made by the Federation or the Federal Government in the oil, gas and mining industries as well as track subsidy payments, company remittances and liabilities.

Extractive360 learnt that a total of 66 oil and gas companies and 14 government agencies are covered and currently working with NEITI in the oil and gas sector audit.

In the solid minerals sector, 102 companies are undergoing the NEITI Audit. The exercise which has reached advanced stage has recorded full compliance by 92 companies while NEITI is following 10 companies very closely, a statement by NEITI Head of Communications and Stakeholders Management, Obiageli Onuorah, said.

NEITI audit in the solid minerals industry is reviewing information and data on revenue streams, distribution of revenues, licensing process including register and allocation of licenses, information on beneficial ownership and the status of contribution of the solid minerals to the economy. Other areas of interest include trend analysis of production volumes data, royalty payments and export destinations of Nigeria’s solid minerals.

NEITI explained that the processes involve examining various transactions especially the basis for computation and remittances of all revenues payable to government such as taxes, royalties and rents.

Reacting on the conduct of the audit so far, Dr. Orji noted that the level of cooperation by companies and government agencies covered, are “encouraging”.

“From the preliminary reports I have reviewed, 62 oil and gas companies fully complied with detailed information and data as contained in NEITI templates/checklist while we await full compliance by only 4 companies”, he said.

On the Fiscal Allocation and Statutory Disbursement audit, NEITI is examining revenues received from oil, gas and mining producing states and statutory relevant government agencies and the utilisation of such revenues for development projects. “In this particular NEITI audit, nine states and 14 Federal Agencies are covered. The states are Gombe, Nasarawa, Rivers, Delta, Anambra, Bayelsa, Imo, Kano and Ondo State. Out of the nine states only two are yet to fully provide NEITI with relevant information and data,” Orji stated.


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