No fewer than 198 extractive industry companies and government agencies have submitted information and data for the ongoing nationwide Nigerian Extractive Industries Transparency Initiative (NEITI) oil, gas, and mining industries revenues reconciliation and validation exercise.
The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji, disclosed this in Abuja on Monday during a meeting with leaders from civil society organizations involved in the country’s extractive sector.
Of the number, Orji said 63 of the companies in the oil and gas industry, met the materiality threshold of a minimum royalty payment of $5million set for covered entities, while 135 others, which met the materiality threshold of N6million, are from the solid minerals industry.
Of the government agencies covered by the ongoing NEITI industry reports and either received, took custody or managed oil, gas and mining revenues, Orji said 14 were for the oil and gas, while eight relevant agencies were for the solid minerals sector.
Orji said the agencies were expected to disclose all payments received and expenditure incurred during the period under review.
He said the level of participation of extractive industry companies in the ongoing industry audit was higher than in the last exercise conducted in 2021, where 190 oil, gas, and mining companies were covered.
The figure, he said, included 121 solid mineral companies, and 69 oil and gas companies that met the materiality threshold of $5million and N3million 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 the final stage,” Dr. Orji said, 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 said NEITI welcomed the renewed commitment, partnership, and cooperation of the oil, gas, and mining companies in the ongoing independent audit exercise, while applauding the high quality of participation and voluntary disclosure of data.
The Executive Secretary announced that a similar exercise (Data Reconciliation/Validation) for the solid minerals industry would hold in Lagos between Monday, August 26 and August 28, 2024, and in Abuja shortly after the Lagos exercise, setting the stage for wider stakeholder reviews and interface on the draft reports.
NEITI is tracking revenues earned between 2022 and last year; the quantity of oil, gas, and mining produced, consumed, or imported or exported, the revenues earned and remitted to appropriate government coffers, and the relevant government agencies that collected or expended such revenues.
Orji said NEITI was also tracking 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), of which Nigeria is a signatory and a founding member.
Orji informed the Civil Society Organisation leaders that a meeting of the National Stakeholders Working Group (the NEITI Board) would be convened next month (September 2024) to deliberate and make decisions on the draft report.
On the progress made since the inauguration of the newly reconstituted National Stakeholders Working Group (NEITI Board) in May this year under the Chairmanship of the Secretary to the Government of the Federation, Senator George Akume, Dr. Orji explained that a weeklong induction/retreat was organised for the members to equip them with the requisite knowledge on EITI/NEITI principles, procedures, processes, and standards, as well as their respective roles.
He said the event, held recently in Lagos, created opportunities for the Board to freely interact and share knowledge and experience with industry leaders regarding their expected roles and responsibilities.
Also, he said the retreat provided a platform for members of the Board to gain deeper insights into NEITI’s operations, its local and international obligations, its success stories, and the challenges that the Board needs to address through strategic policy initiatives and guidance.
The Chairman of the Code of Conduct Bureau, the Chairman of the Fiscal Responsibility Commission, and representatives from the Oslo-based international secretariat of EITI were among the chief executives and heads of government agencies who spoke during the retreat on the importance of upholding NEITI’s corporate values, competency, and integrity through strong adherence to the EITI Code of Ethics, which NEITI, under the new Board, is set to domesticate.
While announcing that the NSWG also held its Board Meeting as part of the retreat, Orji said the setting up of the following working committees were announced:
The Committees included Strategy, Implementation/Validation Committee; Extractive Industry Committee; Human Resource; Ethics Committee; Communication/Civil Society Steering Committee, and Audit; Risk Committee.
He said the Committees were given the task of strengthening NEITI’s operations in EITI implementation, recording higher outcomes on validation, sustaining regular quality reports with courageous, content-driven public disclosure, building a resilient, competent, and ethically sound workforce, and enhancing engagements with extractive companies, governments, civil society, and the media.
This, he pointed out, would enable Nigeria, through NEITI, to sustain its leadership role in the global EITI, evenn as the Board also set up a special ad-hoc committee to review the NEITI Act, which was enacted in 2007.
In addition, he said the Board accepted the justifications for the review submitted by the Secretariat and called for wider stakeholder consultations.
On the conduct of the Fiscal Allocation and Statutory Disbursement Industry Reports that track revenue inflows and utilization, the NEITI Executive Secretary announced that procurement processes arising from public advertisements for competitive bidding to select consultants for the Fiscal Allocation and Statutory Disbursements (FASD) are almost concluded.
Similarly, Dr. Orji said the special study by NEITI on the Impact of Energy Transition on Nigeria’s Economy was also undergoing the procurement process.
“We expect the competitive procurement processes to be completed for consultants for these two projects to emerge, hopefully, in the coming weeks,” he said.
He assured that NEITI would set realistic targets for the delivery of these relevant projects and reports once consultants have been selected from the ongoing competitive procurement processes.
The NEITI Executive Secretary used the opportunity of his address at the CSO meeting to provide updates on NEITI’s renewed commitment to deepening engagements with extractive companies, civil society organizations, and the government at national and sub-national levels.
Dr. Orji disclosed that a meeting of the NEITI-Companies Forum was recently hosted in Lagos by the Oil Producers Trade Section (OPTS) of the Lagos Chamber of Commerce, with zonal representatives from the South-West, with NEITI Board member, Abdul Jeleel Taiwo Olasupo, as a special guest.
NEITI used the forum to introduce the Southwest zonal representative as well as the President of the Miners Association of Nigeria, Mr. Dele Ayanleke.
Besides, NEITI also hosted the oil and gas companies for a meeting to discuss peculiar issues, challenges, and opportunities at the sidelines of the data reconciliation and validation meeting just concluded in Lagos.
A similar strategic meeting with the solid minerals sector will hold at the sidelines of the solid minerals data validation exercise scheduled to commence on August 26.
The Executive Secretary announced that NEITI has opened up engagements with Dangote Refineries and Petrochemicals, the biggest private sector investment in the downstream sector, to discuss issues pertaining too its operations and the impact on petroleum products supplies.
“NEITI’s first meeting with the company centered on the need for compliance with EITI Standards and NEITI mandates and the opportunities for Dangote Refineries to join the EITI as a supporting company.”
On Civil Society Engagement, the Executive Secretary welcomed the strengthening of partnership and cooperation between NEITI and the Civil Society constituency, resulting from the inclusive and innovative approaches brought by the CSO Representative on the NSWG, Dr. Erisa Danladi Sariki, through wider consultations to bring all stakeholders together. She informed the last NSWG meeting of her plan to host an enlarged CSO meeting.
Dr. Orji pledged the support of the NSWG under the leadership of the Secretary to the Government of the Federation, Senator George Akume, to give the Civil Society the necessary support based on need and request where applicable.
Dr. Orji reaffirmed that “NEITI’s engagements with the government and its agencies remains very strong, beneficial, and impactful in the implementation of our mandates.”
He outlined recent areas of cooperation, including NEITI continued sitting on the Monthly Federation Accounts; Allocation Committee (FAAC), and its recent admission into the Presidential Committee on Tax and Fiscal Policy Reforms.
In addition, he said NEITI was awaiting the decision of the government on the request by the NSWG and the SGF before President Tinubu for NEITI to be included in the recently constituted National Council on Climate Change and Green Economic Solutions.
NEITI was also part of a Presidential Retreat held on Saturday, August 17 at the State House, Presidential Villa, Abuja. It was for heads of 14 Federal Government Agencies under the Office of the President, including NEITI.
The retreat received status reports on the implementation of EITI in Nigeria, the impacts, issues, and challenges. We also shared our plans for the future. It equally reviewed the 2024 budgets and guidelines for next year’s budget.
The high-level retreat was attended by the Chief of Staff to the President and Deputy Chief of Staff to the Vice President, the Permanent Secretary, State House, Ministers, and top government officials.
One important aspect of the briefing worthy of note was NEITI’s engagement with Development Partners, which Dr. Orji described as equally very strong.
“We have received support from the Ford Foundation for a study on the impact of energy transition on Nigeria’s economy. NEITI has continued to benefit from EU support under the IDEA/ROLAC on improving governance, rule of law, and anti-corruption.
“We are also about to launch a new project with the EU on oil transparency and greater budget accountability in the Niger Delta. Adam Smith is managing the project. The Embassy of Belgium, the High Commissioners of Canada, and Australia paid a courtesy visit to NEITI to convey their strong support to NEITI and pledged readiness to offer assistance where necessary.
The Ambassadors of these important countries were conducted around the newly completed NEITI Data Centre at NEITI House
