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From Uche Usim, Abuja
The Executive Secretary and Chief Executive Officer of the Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya Orji, has urged those entertaining thoughts of a possible reintroduction of the ruinous subsidy payment era to perish the dream as the conversation now should be how to channel funds saved from subsidy into developing infrastructure, boosting energy, improving security and the general well-being of Nigerians.
Orji stated this in Abuja on Tuesday at a stakeholder validation workshop on the 2022 annual progress report for the extractive sector.
According to him, President Bola Tinubu’s audacity to end the subsidy regime must be commended as it would free a lot of resources for the Federal Government to tackle the litany of challenges facing the nation.
“We join forces with CSOs and the media to say that the money saved from subsidy should be used to build roads, infrastructure, electricity, security, healthcare jobs, general well-being among others, so that Nigerians will know the difference between subsidy regime and when it was rested.
“That is the next stage and it will depend on knowledge, capacity, data and prudent application of resources.
“Short term steps to be taken to ameliorate the pain of Nigerians is what we should be discussing. No going back on subsidy removal but moving forward. Subsidy has put a lot of impediment around transparency and accountability in the management of revenues in the oil and gas industry over the years,” he said. He added that subsidy removal has thrown up other issues like the actual consumption figure of petrol.
“We don’t think the figures being thrown up are very correct. NEITI is commissioning a study on actual PMS consumption. We have every reason to believe that the figure may be less than what we’re projecting.
“Subsidy removal has removed the incentives for ballooning the consumption figures, which lack empirical logic and reason. It’ll also remove the veil responsible for opacity and budgeting based on estimates and that’s why subsidy removal is a very fundamental policy shift,” Dr Orji explained.
On the dissolution of boards as directed by Tinubu, the NEITI boss described it as a presidential policy, on which he has since briefed the global Extractive Industries Transparency Initiative (EITI) on latest developments and how they may affect the agency’s operations in the meantime.
He also said he would meet with the Secretary to the Government of the Federation (SGF), George Akume, to explain the vital works the NEITI board handles and how to get around the challenge of not having a board.
On the reason for the workshop, the NEITI boss noted that the global EITI requirement 7.4 under its 2019 standard (now requirement 1.5 under its 2023 standard) mandates all implementing countries, including Nigeria to document their review of impacts and outcomes of the EITI mplementation in an annual progress report or through other means as may be agreed by Multi-Stakeholders Group (MSG).
“The global body also requires that all stakeholders – companies, government and civil society involved in the EITI process, including those not on the MSG, should be able to participate in reviewing the impact of EITI implementation, provide feedback, and have their views reflected in the annual progress report.
“Therefore, this programme has been designed to consult with you, seek your inputs and have your views reflected in the 2022 the Annual Progress Report of the Nigeria Extractive Industries in line with the requirements of the global EITI.
“The programme also provides us a platform to evaluate and celebrate progress, milestones and achievements recorded through our various organization’s programme and activities in the oil gas and mining sector within the period under review through the mechanism of global EITI annual progress reporting”, he added.
Also speaking, the Chief Compliance Officer of the Nigerian National Petroleum Company Limited (NNPCL) Nasiru Usman said the company has improved on transparency as acknowledged by EITI.
“Everyone thinks we’re corrupt but not true. We’re big on accountability and transparency”, he added.
