TheCable

Vice President Yemi Osinbajo has promised that the federal government will carefully study and implement the findings and recommendations contained in the audit reports of the Nigeria Extractive Industries Transparency Initiative (NEITI).

Osinbajo made the pledge in Abuja while receiving Clare Short, chairperson, global Extractive Industries Transparency Initiative (EITI), and her delegation at the Defence House, Abuja.

This was confirmed in a statement issued by Orji Ogbonnaya, director of communications, NEITI.

Ogbonnaya said Osinbajo reaffirmed the federal government’s commitment to the implementation of the NEITI principles as part of plans to reform the oil and gas sector and commended NEITI for its courage, diligence and commitment to good corporate governance in the oil and gas and mining industries.

He quoted Short, in her speech, as advising the government to consider a major shakeup in the oil and gas industry if the benefits from Nigeria’s abundant resources were to be enjoyed by all Nigerians.

“The NEITI reports have all the information and data that will guide the government to reform the industry. It is also important that the government integrates the NEITI into its overall economic policy team,” she said.

She later revealed that her visit was aimed at pushing for reforms in the oil and gas mining industries, particularly now that the country has a new government, while bemoaning corrupt practices in Nigeria’s oil sector, expressing optimism that the present government would implement some of the suggested reforms in the sector.

Nigeria joined the global EITI in 2003 and began implementation in 2004 and supported same with the enactment of a law in 2007.

NEITI recently released a statement calling on President Muhammadu Buhari to prioritise the recovery of $18.1 billion unremitted oil and gas funds from oil and gas companies operating in Nigeria.

“Our 2012 audit report discovered that total dividend loans and interest repayment from NLNG paid to the NNPC in 2012 was $2.8 billion. However, in the course of NEITI’s audit, NNPC was unable to provide any evidence to show that the funds were remitted to the federation as required by law,” the statement quoted Zainab Ahmed, its executive secretary, as saying.

“The total amount received by NNPC from NLNG under the same circumstances, which have not been remitted to the Federation Account, stands at $11.6billion.”

According to Ahmed, while these monies, which were revealed by several independent audit reports of the agency, were still outstanding, the issues around their recoveries had not been adequately addressed.

The NEITI audit reports between 1999 and 2011 have revealed a total revenue loss of $9.8 billion to the federation as a result of underpayments, underassessment of taxes, rents, royalties and other process lapses.

Of the $9.8 billion, NEITI working with other agencies, has recovered $2.4 billion. The breakdown of the recoveries shows that $1 billion was recovered from 1999 to 2004 audit reports, $550 million was recovered from the NEITI audit reports of 2005 and 2006, the 2008 audit report led to a recovery of $447 million, while NEITI reports of 2009 to 2011 resulted in a recovery of $416 million.