NEITI Targets Domestic Resource Mobilization, Project By Project Audit
By Gift Eguavoen
The Nigeria Extractive Industries Transparency Initiative (NEITI) says it would now target domestic resource mobilization and project by project audit in its 2022-2023 oil, gas and mining sectors audit, as part of efforts to enthrone transparency in the extractives industry.
Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, stated that domestic resource mobilization has become key to NEITI interventions in the industry as part of NEITI’s mandates of enthroning transparency and accountability driven by public disclosure and blocking leakages.
Dr. Orji, stated this in Port Harcourt while declaring open nationwide sensitization workshops on the conduct of the 2022-2023 industry reports of the oil, gas and mining sectors for companies in the South-South and South-East Zones.
He explained that the focus of the sensitization workshops, which began in Lagos and continued in Port Harcourt, was to acquaint the agencies and companies covered by the report with the templates designed for the exercise, sensitize stakeholders on the scope of the report and the data and information expected for the process.
While explaining that the workshops were in line with the principles and standards of the global Extractive Industries Transparency Initiative (EITI), Orji said, “The objectives of these industry reports are to establish and make public revenue flows through investment among the major players in the oil, gas and mining sectors, examine the financial, physical and process issues from, within and among the companies and relevant government agencies”.
He added that “The report will specifically, undertake special verification and validation of information and data on the payments made by the companies to government entities as well as government receipts. Other areas will include quantities and volume of crude produced, balances payable or receivable on certain financial transactions, taxes, royalties on project-by-project basis, social contributions and investment flows in Nigeria’s oil and gas industry”. Dr. Orji emphasised.
Similarly, he said the 2022-2023 solid minerals report would disclose data and information on quantities of solid minerals mined, quarried, processed, exported and imported, track the extractive industries sector fund collected by various government agencies to the Federation Account and reconcile the payments made by major players to government in the sector during the period under review.
Dr. Orji highlighted that the NEITI new sets of templates have also been designed to capture the new requirements as expected by the EITI, which include, mainstreaming, disclosure of covered entities’ anti-corruption policies and practices, threshold for reporting beneficial owners, Nigeria’s energy transition policies, carbon pricing and subsidies and its effect on government revenues.
Other areas to be covered by the reports are disclosures on environment, social and gender impact assessments of extractive activities and employment data in the industry.
He used the opportunity to appeal to government agencies as well as extractive industry companies covered by the reports to fully cooperate with the process as required by Law and within the timelines set for the completion of the exercise.
He further reiterated that NEITI has opened up engagements with the National Assembly to track the implementation of the Petroleum Industry Act (PIA).
“The PIA aligns strongly with the objectives of NEITI in the oil and gas industry which is to sanitize the sector and institutionalise a regime of transparency, accountability, efficiency and productivity, aligning the industry with global standards and best practices. NEITI has remained at the forefront of the advocacy for this to happen.” Dr. Orji stated.
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