Nigeria Commits To Unveiling Owners Of Extractive Companies By 2020

Nigeria, Extractive Companies, NEITI, EITINigeria has set January 2017 timeline for the development of an actionable roadmap to unveil the real owners of extractive companies in the country by 2020.

The plan is in line with a mandate of the Extractive Industries Transparency Initiative (EITI).

The Minister for Solid Minerals, Dr. Kayode Fayemi, says anonymous companies have been used to fuel and mask corruption in Nigeria.

He also raised concern over the illicit wealth often lodged in foreign countries while Nigerians were denied the benefits of the natural resources.

The minister recommended a public registry of beneficial owners of these companies developed in conjunction with global bodies and other countries, as a way out of the challenge.

He expressed confidence that it would help Nigeria check abuses, grafts and money laundering which have ploughed down the economy and given the country a negative image in the comity of nations.

Dr. Fayemi spoke on Monday at a forum with representatives from nine other African countries and all EITI-implementing countries held in Abuja, Nigeria’s capital.

The Deputy Head of EITI, Mr Eddie Rich, told reporters that the meeting was convened to create a roadmap for beneficial ownership disclosure by 2020; that is to unmask the real people behind companies in the extractive sector.

The Executive Secretary of NEITI, Mr Waziri Adio, also stressed the need for Nigeria to surmount some challenges, saying it gave room for the regional consultative workshop.

Allegation Of Unremitted Dividends

NEITI, in some of its past audit reports, had alleged several irregularities in the extractive industries including unremitted dividends and abuse of the petroleum subsidy regime.

The four year audit reports between 2009 and 2012 contained an alleged unremitted $11.6 billion to the Federation Account.

NEITI Chairman, Mr Mitee Ledum, decried the non-implementation of the audit reports and recommendations to reform the extractive industries.

During a visit to Nigeria some months ago, EITI Chairperson, Mrs Clare Short, urged the Nigerian Government to implement its past reports in its quest to reform the mineral extractive sector of the economy.

Mrs Short was in Nigeria to meet with the government and lend a voice to the proposed reforms in the extractive sector of the economy.

She expressed the view that the Federal Government had a ready-made tool in the reports of NEITI which could be relied upon to reform the sector.

Senate Constitutes Committee To Probe NEITI Report

Senate, NEITIThe Senate has setup an adhoc committee to look into the audit report of the Nigeria Extractive Industry Transparency Initiative (NEITI).

This comes after the NEITI report alleged fraud in the Nigeria’s extraction industry to the tune of 12 billion dollars.

The Senate came up with this decision after listening to a presentation by the Executive Secretary of NEITI, Mr Waziri Adio, on Wednesday at the National Assembly in Abuja.

In his remarks, the Senate President, Dr. Bukola Saraki, announced that the committee has four weeks to submit its report to the upper legislative chamber.

He directed the committee to come up with a draft legislation that would help fight corruption and fraud over non-remittances to the Federation Account.

In his submission, Mr Adio gave recommendations on what should be done to stem the tide of the shortcomings experienced in the extraction sector.

The debate also featured the contributions of some legislators including a representative from Kogi State, Sen. Dino Melaye, and the former Governor of Akwa Ibom State, Sen. Godswill Akpabio.

Extractive Industry Reforms: NEITI Urges Government To Implement Its Report

International Extractive Body Urges Government To Implement NEITI ReportThe International Extractive Industries Transparency Initiative (IEITI) has called on the Nigerian Government to implement its past reports in its quest to reform the mineral extractive sector of the economy.

The IEITI Chairperson, Mrs Clare Short, made the call on Tuesday during a visit to Nigeria, to meet with the government and lend a voice to the proposed reforms in the extractive sector of the economy.

She expressed the view that the Nigerian Government had a ready-made tool in the reports of NEITI which could be relied upon to reform the sector.

NEITI, in some of its past audit reports had alleged several irregularities in the extractive industries including unremitted dividends and abuse of the petroleum subsidy regime.

The four year audit reports between 2009 and 2012 contained an alleged unremitted $11.6 billion to the Federation Account.

NEITI Chairman, Mr Mitee Ledum, decried the non-implementation of the audit reports and recommendations to reform the extractive industries.

The Executive Secretary of NEITI, Zainab Ahmed, also explained why NEITI has not been able to prosecute defaulters in the past.

She expressed optimism that this visit by the international body would boost the clamour for the implementation of the reports.

NEITI Commences Audit Of Allocations To Oil-Producing States

The Nigeria Extractive Industries Transparency Initiative (NEITI) has commenced the audit of physical allocations and statutory disbursement of the extractive industry from 2007 to 2011 with an initial focus on the nine oil-producing states.

This audit is coming in line with the decision of the Federal Executive Council at its November 28, 2013 meeting.

NEITI is engaging an indigenous audit firm, S.A.I.O. Partners to audit the allocations to the nine states benefitting from the 13 per cent oil derivation.

The audit is expected to be completed within the next nine months

The states benefitting from the 13 per cent oil derivation are the oil-producing states of Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and River.

The exercise will also be extended to key entities like the Central Bank of Nigeria, the Niger Delta Development Commission (NDDC) and the Petroleum Technology Development Fund (PTDF).

The audit will also cover the federal government’s share of derivation and ecology as well as the management of the excess crude account.

Speaking at a ceremony to sign the Memorandum of Understanding with the auditing firm, the executive secretary of NEITI, Ms Zainab Ahmed said the exercise is not a witch-hunt but one that will create data for national planning and development.

The audit, which is in accordance with provisions of Section 2 of the NEITI Act 2007.