NEITI Audit: FG Responsible For Imposing Sanctions – EITI Chair | Independent Newspapers Limited
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NEITI Audit: FG Responsible For Imposing Sanctions – EITI Chair

Posted: Jun 17, 2015 at 3:55 am   /   by   /   comments (0)

• As CISLAC Tasks Buhari On Unremitted $11.6b Oil Revenue

By Obas Esiedesa, Abuja and  Tunde Opeseitan, Lagos


International Chair of the Extractive Industries Transparency Initiative (EITI), Clare Short on Tuesday noted that it is the responsibility of the Federal Government to sanction erring oil and gas companies which fail to remit appropriate amounts to the Federation Account.

Short who is in Nigeria for a meeting of EITI implementation committee, said the several audit reports of the Nigeria Extractive Industries Transparency Initiative (NEITI) provides the new government of President Muhammadu Buhari an opportunity to reform the petroleum sector.

Executive Secretary of NEITI, Mrs. Zainab Ahmed explained last week that about $ 7.5b is still in the hands of oil and gas companies operating in Nigeria, in form of underpayments, under-assessments of taxes, royalties, rents taxes, and other levies.

She also stated that the Nigerian National Petroleum Corporation (NNPC) has failed to remit about $11.9billion from being dividends due to the federation from the operations of the Nigeria Liquefied Natural Gas (NLNG).

Short said sanctions are in the hands of the government, which has the responsibility to ensure that companies pay what they are supposed to pay.

While defending the EITI decision to award Nigeria the best EITI implementing country in 2013 despite remedial implementation challenges, she said

She however, lamented that unfortunately most of the recommendation contained in the reports were not being implemented by past governments.

Short disclosed that the standards have now been changed to ensure that in new reports, the status of remedial issues contained in the previous report is disclosed.

Meanwhile, the Civil Society Legislative Advocacy Centre (CISLAC) on Tuesday urged President Muhammadu Buhari to recover all revenues due to Nigeria and expedite the implementation of recommendations made by the independent auditors in the annual reports of the Nigeria Extractive Industry Transparency Initiative (NEITI) in the past 10 years.

CISLAC, in a statement by its Executive Director, Auwal Ibrahim Musa, noted the reminder credited to the NEITI Secretariat that about $11.6 billion (N2.32 trillion), which represented outstanding total dividends arising from loans and interest repayments from Federal Government’s investment in Liquefied Natural Gas (LNG), among others, were yet to be remitted into the nation’s coffers and, therefore, unavailable to finance development for the citizens.