Follow Us on Google
By Adewale Sanyaolu
The Nigerian Extractive Industries Transparency Initiative (NIETI) has reported that debtor operators in the industry remitted over $3.8 billion to the nation’s treasury.
Executive Secretary of NEITI, Mr. Ogbonnaya Orji, disclosed this in his presentation at the Association of Energy Correspondents of Nigeria(NAEC) annual conference which held in Lagos recently with the theme “Energy Transition, Shaping the Future of Nigeria’s Energy Industry: An Appraisal of the Petroleum Industry Act, Evolving Benefits and Challenges”
NEITI had in the recent release of its industry reports of the oil and gas sector, reported that 77 companies in the oil and gas sector in Nigeria owed the federation a total of $6.477 billion (N2.6 trillion).
‘‘That report could have gathered dust on the shelves unnoticed. But you – the media picked up the news and ran with it. The result is that the House of Representatives set up an Ad hoc Committee to investigate, recover the outstanding debts and conduct a proper reconciliation of accounts between the Federal Government and the Oil Companies.
I am glad to report that over $3.8billion (N1.5 trillion) has been paid while over US$2.67 billion(N1.07 trillion) is still outstanding. This is just one of the impacts of our partnerships with you. I can name many more,’’
He added that the NEITI reports have also led to the activation of the solid minerals revenue account. From this account, he explained that revenues are shared to the federation using laid down constitutional provisions including the payment of 13 per cent derivation to solid minerals producing states as it is done for the oil and gas sector.
He, however, stressed the need for greater transparency and accountability in the management of the nation’s mineral resources.
He said accountability and efficient resource are critical in enthroning congenial fiscal and regulatory environment envisaged in the PIA. He added that that the industry policy formulators and implementation agencies must evolve regulations that drive a departure from the pitfalls of the past and present crises.
Orji who was represented by the Assistant Director in charge of Communications & Advocacy, Mrs Obiageli Onuorah, commended NAEC on choosing a conference theme that was very apt in the emerging realities in global and domestic energy industry.
‘’As the world moves from fossil fuel to cleaner and sustainable energy, it must be noted that transparency and accountability will be central to efforts to support the transition process. This will include the reporting of emissions, the disclosure of climate risks and the overall governance of the future energy industry. Therefore, Nigeria must be prepared to mainstream transparency and accountability mechanisms into her energy transition agenda to avoid the pitfalls of her past and present energy circumstances.’’
He affirmed that NEITI has a major role to play in a sustainable energy sector for the country and is already working with its partners to help stakeholders gain full insights and deepen public knowledge on the risks and opportunities that are associated with the transition within our national context through timely disclosures and dissemination of extractive industries data and information.
