NEITI Plans Ranking for Oil Firms, MDAs On Audit Compliance
The Nigeria Extractive Industries Transparency Initiative (NEITI) has stated that it will undertake a compliance ranking of all companies and government agencies that are participating in its ongoing 2019 oil and gas industry audit.
The ranking exercise which is instituted to examine levels of compliance to the data gathering component of the NEITI’s audit process among participating entities will focus mainly on two indicators– timeliness and completeness of submitted templates, checklists and supporting documents.
While timeliness examines how participating entities are able to meet the deadlines for submission of templates and supporting documents, completeness is concerned with full, comprehensive and accurate disclosure of all necessary information and data.
The information on the ranking exercise, the indicators and the deadlines has been communicated to the participating entities and the general public.
NEITI noted that after extensive consultations with the concerned companies and agencies, the deadlines for submission of the audit templates was moved from the initial date of 13th July to 27th July while the date for the submission of the supporting documents was moved to 3rd August 2020, from the initial date of 13th July 2020.
The agency also noted that the outcome of the ranking exercise will be shared with the companies and government agencies covered by the audit and will also be made public.
A total of 80 oil and gas companies that fall within the materiality threshold of the NEITI audit are expected to participate in the audit exercise. The audit also covers ten government entities that are receiving, managing or warehousing oil and gas revenues.
NEITI reiterates its intention to release the 2019 audit report this year, which will be a new record for among EITI-implementing countries and further cement Nigeria’s current profile of setting new reporting standards by its publication of its EITI reports months before the deadline set by the global body. It also enhances the timeliness and usefulness of the reports by stakeholders who need the data contained in the report for informed engagements and decision making in the oil and gas sector.
NEITI introduced the audit data compliance ranking in 2017 to incentivize greater compliance at this critical stage of the audit process and recognize highly compliant companies and agencies.