198 Extractives Firms, Govt Agencies Open Records As NEITI Industry Audit Advances
By Gift Eguavoen
A total of 198 extractives companies and government agencies have submitted volumes of information and data for the ongoing 2022/2023 nationwide reconciliation and validation of revenues in the oil, gas, and mining industries by the Nigeria Extractive Industries Transparency Initiative (NEITI).
The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, disclosed this in Abuja while addressing a meeting of leaders of civil society organizations working in the extractive sector.
Dr. Orji explained that out of the 198 companies, 63 are in the oil and gas industry, meeting the materiality threshold of a minimum royalty payment of $5 million, while 135 companies, which met the materiality threshold of N6 million are from the solid minerals industry.
He further disclosed that 14 government agencies in the oil and gas sector, and eight relevant agencies in the solid minerals sector, that either receive, take custody or manage oil, gas and mining revenues, are covered by the ongoing NEITI industry reports. The agencies are expected to disclose all payments received and expenditure incurred during the period under review.
Dr. Orji explained that the level of participation of extractive companies in the ongoing industry audit is higher than in the last exercise conducted in 2021, where 190 oil, gas, and mining companies were covered. This included 69 oil and gas companies and 121 solid mineral companies that met the materiality threshold of $5 million N3 million naira in royalty payments, respectively, for reconciliation in the oil, gas, and mining sectors.
“The ongoing 2022/2023 Oil, Gas, and Solid Minerals Industry Reports have reached an advanced stage, in fact, the final stage,” disclosed Dr. Orji, adding that the data reconciliation and validation meetings for the oil and gas extractive companies and relevant government agencies were held and concluded in Lagos last week.
He welcomed the renewed commitment, partnership, and cooperation of the oil, gas, and mining companies in the ongoing independent audit exercise, applauding the high quality of participation and voluntary disclosure of data.
He announced that a similar data reconciliation/validation exercise for the solid minerals industry would begin in Lagos from Monday, 26th to 28th August, 2024, setting the stage for wider stakeholder reviews and interface on the draft reports.
Dr. Orji further informed the civil society leaders that a meeting of the National Stakeholders Working Group (NEITI Board) would be convened in September to deliberate and make decisions on the draft report.
Extractive360 reports that NEITI is tracking revenues earned by the Nigerian federation between 2022 and 2023. The audit covers the quantity of oil, gas, and minerals produced, consumed, imported or exported, the revenues earned and remitted to appropriate government coffers, and the relevant government agencies that collected or expended such revenues within the period.
The audit will track how the processes undertaken during these transactions measured up to the standards of transparency and accountability in line with the global Extractive Industries Transparency Initiative (EITI), which Nigeria is a signatory and a founding member of.
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