The Nigeria Extractive Industries Transparency Initiative (NEITI), is considering two studies on the utilisation of 13 percent derivation and actual volume of Premium Motor Spirit (PMS) consumption in Nigeria.
NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji let drop the plan at the Civil Society Consultative Forum organised by the NEITI on Tuesday, August 15, 2023, in Abuja.
TheFact Daily reports that the utilization of the 13 percent derivation fund, which is allocated to oil-producing communities in Nigeria, has been a subject of controversy and concern.
There have been allegations that state governments cheat oil-producing communities by misusing the 13 percent derivation fund.
Instead of using the funds for the development of the communities as intended, there are claims that the funds are diverted for other purposes.
On the actual volume of fuel consumption in Nigeria, it was reported that between January and August 2022, the total volume of PMS imported into Nigeria was 16.46 billion liters.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) stated that Nigeria’s daily consumption of PMS stands at 66 million liters.
There were even reports that the average volume of PMS consumption in Nigeria has dropped from 66 million liters per day to over 40 million liters per day, but the Nigerian National Petroleum Company (NNPC) Limited attributed the fluctuations in the consumption data to market and demand realities.
Dr. Orji assures that the challenges in accurately determining the actual volume of PMS consumption in Nigeria would be unravelled.
He also hinted at a plan to update the NEITI CSO database to weed out those that are not covering the extractive sector, assuring that there would be provision of technical support to CSOs engaging in the Extractive Industries Transparency Initiative (EITI) process.
He informed that the process for the conduct of 2022-2023 industry reports has commenced, adding that reconciliation and update of all data and information on financial liabilities (Outstanding revenue remittances to the federation) would also be considered.
Presenting a Status Report on EITI implementation in Nigeria, Dr. Orji said, there was a need to strengthen EITI and Anti-corruption agencies in Nigeria, and also broaden engagement with the Civil Society.
He said, NETI made inputs to the handover notes to President Tinubu and also submitted copies of the policy advisory on the cost of fuel subsidy to the nation to the President through
the Secretary to the Government of the Federation (SGF) (H.E George Akume).
He said, the agency also sent a Policy Advisory on the way forward in the ongoing reforms in the Oil, Gas, and Mining Industry to the President, SGF, and NASS through the Senate President.
He said, the agency made a strong case to the government to exempt NEITI’s NWSG from the dissolution of all the Federal boards, citing the MSG framework and peculiar nature of NEITI operations but most importantly consequences that Nigeria may face from the global EITI.
NEITI also briefed the global EITI in Oslo on the sudden development and the implications for Nigeria’s membership status especially at this time that Nigeria is undergoing Validation.
On next steps, he said, would “initiate reconciliation process among the Civil society constituency, and amend sections A & C of nomination guideline.
“Harmonization of all frameworks for civil society engagement into a CSO constituency guideline
“Conduct capacity building program for CSO on roles and responsibilities on the 2023 EITI Standard.
“Release of the 2021 oil, gas, and mining reports and the 2020-2021 FASD reports. This is consequent upon the approval of the reports in the absence of the NSWG at the meeting to be held tomorrow.
“Follow up with the government on the NSWG issues. Commenced the conduct of the NEITI 2022 industry reports.
“Broaden stakeholders’ engagement and sub-national outreaches”.
On other obligations, he said, “NEITI led Nigeria’s delegation to the EITl Global conference in Dakar, Senegal from 13th-15th June 2023.
“NEITI’s visibility at the global conference was commendable.
“The EIT! launched the 2023 EITI Standard, the 4th edition of the global Standard.
“Rt Hon. Helen Clark was re-elected for a second term alongside a new EITI Board.
“NEITI participated at the African Anti-Corruption Day held 11 July 2023”.
