Nigeria’s Oil And Revenue Now $742.48bn – NEITI

The Nigeria Extractive Industries Transparency Initiative (NEITI) has said the Federal Government has earned $741.48billion revenue from the oil and gas sector.

The earnings, according to the Executive Secretary Dr. Orji Ogbonnaya Orji, do not include the ones of 2021.

He revealed that the 2021 oil and gas audit is on course, noting that it would be presented to the public this year.

The Executive Secretary spoke at the Stakeholders Engagement on the Implementation of the Petroleum Industry Act (PIA) held on Tuesday in Abuja.

He said: “From the report, a total of $ 741.48 was recorded as revenue earnings to government coffers from the sector. The 2021 oil and gas sector audit is currently ongoing and will soon be released.”

He added that NEITI reports have led to the recovery of several billions of dollars by the government from companies operating in the sector.

Orji said NEITI has since been working with relevant stakeholders, including sister agencies that are members of the committee, leveraging on the organization’s experience and exposure in the oil and gas sector over the years to ensure that the implementation of the PIA delivers its overall objective and desired results.

He said so far, NEITI has conducted and published 25 cycles of audit reports in the oil and gas sector, covering the period 1999-2020.

Orji noted that the recommendations of the watchdog organization’s reports are also triggering huge reforms in the sectors, such as the Petroleum Industry Act (PIA) that its engagement was being held on Tuesday.

He dropped the hint that considering the emerging issues in the global EITI, and the NEITI’s obligation under the PIA, the agency is currently working to review its enabling law to accommodate these new developments.

The agency, he said, is embarking on an expansion drive of its operations.

Orji added that this is guided by its 5-year Strategic Plan (2022-2026) which will enable the agency to establish a presence and operate at sub-national levels to support government revenue growth plan and resources mobilization.

The Executive Secretary said NEITI will now adopt preventive measures ward off corruption instead of engaging in pursuit of defaulters to no avail.

“Like I said earlier, we do not want to be chasing the ambulance when the whole thing has been messed up.

“The PIA is providing a complete new opportunity for our country, providing a new environment so that from the onset we are part and parcel of those who will create that new environment using the PIA platform,” he said.

Noting that the multi-stakeholder engagement on the implementation of the PIA the program, stressing that it is hosted by the Nigeria Extractive Industries Transparency Initiative (NEITI) with the support of Oxford Policy Management (OPM).

He also explained that the program is designed to provide a platform for stakeholders, and state and non-state actors to discuss and engage with the process of PIA implementation and make meaningful contributions.

The program, according to him, will also serve as a platform to update the public and galvanize the needed public support for the implementation of PIA.

He recalled that following the enactment of the Act, Federal Government set up a Steering Committee (STEERCO) for its implementation on the 20th of August 2021.

In recognition of NEITI’s leading role in shaping reforms in the oil and gas sector, the agency was drafted into the PIA Implementation Steering Committee by the President on the 14th of September 2021.

Orji explained that the primary responsibility of the steering committee is to guide the effective and timely implementation of the PIA and ensure that the new institutions created are fully prepared and positioned to deliver on their mandates under the new legislation.

He stressed that the President, while drafting NEITI into the committee noted that the agency’s rich knowledge, information and data in the oil and gas sector will help the committee to align the implementation of the Act with EITI requirements and emerging global standards in the sector.

He also recalled that the President further noted that NEITI will work with the committee to put in place sustainable systems and processes for institutions that will emerge under the Act, and help to lay a solid foundation for a culture of transparency, accountability and good governance in the oil and gas industry.

The Executive Secretary said as an agency with the mandate to promote transparency and accountability in the extractive sectors, with a multi-stakeholders platform for dialogue on natural resources governance, NEITI has a huge responsibility to facilitate and strengthen the participation of diverse stakeholders for a successful implementation of the PIA.

He said the PIA provides wider roles for NEITI in the oil and gas sector, clearly spelling out the need for transparency and accountability in Nigeria’s petroleum sector.

Orji insisted that the implementation of the Act and full operationalization of its provisions are of great interest to NEITI and its stakeholders.

In his Goodwill message, the Nigerian National Petroleum Company Limited (NNPCL), Group Chief Executive Officer, Malam Mele Kyari, said the PIA

is built on the principles of competitiveness, fair and equitable sharing of risks and rewards are split into government, investors, simplicity of administration and transparency that our stakeholders remain here.

The Chief Financing Officer, Umar Ajiya, who represented him said these principles are guided and they have economic growth through increased monetization of crude oil and increased production of gas.

Meanwhile, the Chairman of the NEITI National Stakeholders’ Working Group (NSWG) Mr. Olusegun Adeyemi Adekunle, recalled the NSWG upon inauguration in July 2021 by the President commenced a programme to strengthen the operations of the Nigeria EITI.

He concurred with Orji that board developed and approved a 5-year Strategic Plan (2022-2026) to guide the process and drive the mandate of NEITI for the next five years.

Continuing, he added “the scope of global EITI which NEITI implements kept expanding with emerging issues which require expansion in the scope of our work at the country level.

The emerging issues include Energy Transition, green Energy, Climate Change, Beneficial Ownership, Contract Transparency, Open Data, Financial modelling/ analysis, Environment, Gender Reporting.

“Besides, Petroleum Industry Act (PIA) which we are gathered to discuss here today set new reform standards and NEITI as a member of the Presidential Steering Committee on PIA implementation has obligation to respond adequately and support its successful implementation and ensure delivery of its objectives.”

He noted that the board resolved to prepare NEITI to deliver on Nigeria’s international obligation and meet citizens’ expectations on the twin components of transparency and accountability and to position Nigeria to attract the much-needed foreign direct investment in the sector while supporting Nigeria’s revenue growth plan & resource mobilisation.

He assured the stakeholders that the Board under my leadership will continue to provide the needed leadership and strategic direction to the NEITI secretariat to deliver on the agency mandate and responsibilities to our country and citizens.