NEITI Asks For Active Collaboration To Tackle Corruption In Oil And Gas Sector

Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Zainab Ahmed has called for a more active collaboration with civil society organisations to help correct the lingering issues of accountability in the oil and gas industry.

Constituting a 15-man committee in Abuja, Ahmed said that the activists would advance the reforms in the sector, as well as disseminate more channels across board to monitor and enthrone greater transparency in the system.

Ahmed said: “the trends and the patterns are the same, and the civil society as they get more informed and we engage them more and they understand the issues, they will be able to intervene at the best of times”, insisting that “things are not going on well at the oil and gas sector”.

“Revenues that are due to the federation are not all going to the federation as they are supposed to. There is a need for us to bring out these issues, to discuss them and to cause whoever is responsible for them to begin to make corrections. We require accountability in the oil and gas and the mining sectors of this country.”

Against the backdrop of the recent $49.8billion controversy between the Nigerian National Petroleum Company (NNPC), and the Central Bank, she noted that the saga is only a confirmation of several reports released by NEITI, pointing cases of unremitted funds to the federation account, insisting that there is the need to urgently fish out those behind these fraudulent acts in the oil and gas sector.

NNPC Must Remit Withheld Revenue, House Insists

The House Committee on Finance has insisted that the Nigeria National Petroleum Corporation (NNPC) must remit the revenue due to the Federal Government of Nigeria.

Chairman of the Committee, Rep. Abdulmumin Jibril, dismissed the explanations by the agency that it has been operating on a loss.

Abdulmumin further said agencies such as the Central Bank of Nigeria (CBN) and the Nigerian Ports Authority (NPA) have remitted over N100 billion of their withheld revenue and the NNPC must do likewise.

KPMG indicts NNPC over $65 million demurrage

An official of KPMG, an audit firm, has revealed that the inefficiency of the Nigerian National Petroleum Company (NNPC) in the payment of demurrage on imported fuel at the ports has cost the country $65 million.

The official of the audit firm, Mr Dimeji Salaudin disclosed this when he appeared before the Senate Committee investigating the management of fuel subsidy in the country.

Mr Salaudin also told the committee that the Petroleum Product Pricing Regulatory Agency (PPPRA) overpaid oil marketers a whopping N25 billion in subsidy.

The Senate committee had summoned KPMG on Thursday over its failure to tender vital documents relating to the fuel subsidy scheme.

Not wanting to incur the wrath of lawmakers, two officials of audit firm KPMG appeared before the senate committee investigating the management of the fuel subsidy scheme.

The Minister of Finance had commissioned the international auditing firm in 2010 to review the subsidy regime from January 2007 to June 2010.

Giving details of the report, the KPMG representative said they discovered from their investigations that documents from the PPPRA to pay oil marketers were doctored.

The KPMG official also faulted the governance framework of PPPRA describing it as weak.

The committee directed the Minister of Finance to appear before it on Tuesday 5th June and also subpoenaed the CEOs of Oando PLC and Folawiyo Petroleum Company Limited to appear before it also on Tuesday.