Oil
NEITI demands more automation in oil, gas production processes
ABUJA – The Nigerian Extractive Industries Transparency Initiative, NEITI, has said that only an automated process that is devoid of human elements would guarantee the effective, timely, accurate and reliable audit and reporting on the operations of the country’s oil and gas industry.
NEITI Director of Communications, Mr. Orji Ogbonnaya Orji, who disclosed this in Abuja, explained that the manual system currently being adopted by government agencies as well as companies involved in oil and gas production has been responsible for the gaps experienced in effective audit reporting in recent times.
He identified some of the gaps to include the difficulties that successive consulting firms hired to conduct the audits face in collating the required information for the exercise from the operating companies,
This has been responsible for the delays and missed deadlines experienced in recent times in the submission of its final audit reports, he lamented
According to him, “An automated audit process will make the exercise more effective, efficient, transparent and reliable, instead of the current manual procedure in data gathering, collation and management with its attendant problems.”
The agency had early last year awarded a N226.6 million contract to the accounting firm of Sada Idris & Co. to produce a three phased core audit on the oil and gas industry, comprising financial flows, physical and process reports, to bring up-to-date its secretariat records in line with its national mandate and rules of the global EITI principles.
Apart from reviewing and reconciling all revenues collected by government agencies on behalf of the Federal Government, the consultant was also mandated to review all payments by all the oil and gas companies operating in the country, to ensure that they complied with international reporting standards and rules of the global Extractive Industries Transparency Initiative, EITI.
However, at the expiration of the nine months deadline, the company only managed to publish the report on the financial flows, with process and physical reports still pending, despite three deadline extensions and a final 21 days ultimatum, which expired on April 24.
The NEITI spokesman decried reports that the failure by the consultant to turn in all the three reports on time for Nigeria to submit them to the EITI Secretariat before the December 31, 2012 deadline was posing a potential threat to country’s status as a leading member and one of the 34 EITI Compliant countries.
“I wish to state that there is no threat whatsoever to NEITI’s validation as a Compliant member of the global Extractive Industries Transparency Initiative”, Mr. Orji said. “I wish to also state that the integrity of NEITI audit reports, methods and procedures remain solidly on granite and one that can be taken to the bank.
“By publishing the financial flows of the 2009-2011 oil and gas audit report as at when due, NEITI and Nigeria is in no default of the Global EITI requirement as at today. The remaining part of the report is solely a requirement of the NEITI Act under our (NEITI) national mandate,” he stated.
He said Nigeria’s independent decision to go the extra mile to conduct an audit beyond mere financial flows to cover the physical ways and processes the revenues were paid by oil companies and received by government is currently being reviewed and considered for adoption by the EITI secretariat as a model of audit reporting for other member-countries.
Insisting the country was not under any obligation to submit more than the financial flows report already submitted to EITI Secretariat, Mr. Orji said not submitting the remaining two reports is not capable of attracting sanctions from the EITI, adding that reports, which are now ready would be reviewed by the NEITI Board before being submitted to the Executive Council of the Federation, FEC, for final approval.
According to the director, the noticeable delays in the audit implementation schedule are not peculiar to Sada Idris & Co., as this has been the recurring experience that NEITI has been battling to overcome over the years, pointing out that with the scope of the audit now expanded to cover issues on oil theft and fuel subsidy, the covered entities have grown from 38 to 59, with the attendant additional responsibilities to the consultant in collating the information and data for the final report.
He said these challenges have made NEITI’s quest for automated auditing process a top priority on its five-year strategic plan, adding that it is currently in discussion with the World Bank to establish an automated system that is expected to become functional before the next auditing exercise.
Orji disclosed that the Norwegian government has pledged its support to NEITI to help realise the plan, even as he urged the Federal Government to expedite action to ensure that the automated audit system becomes operational in the country in the near future to remove the challenges in the process.
In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.
The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.
The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.
Read Also: Atiku Calls For Rotational Presidency Across Nigeria’s Geopolitical Zones
These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.
The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.
This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.
These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.
The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.
By Yemie Adeoye
NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.
The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.
“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”
The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.
“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.
Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.
As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.
Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”
Read Also: Offset Accuses Cardi B Of Cheating During Pregnancy
This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.
Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.
We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.
“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.
On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.
NLC Backs NUPENG’s Strike Threat Over Alleged Military Eviction of Oil Workers
Galatasaray’s Win Over Tottenham ‘Marks New Era for Turkish Football’ – Buruk
US Election: Why Young Men Backed Trump
NWFL Backs Edo Queens’ Historic Quest @ 2024 CAF Women’s Champions League
NNPC Ltd, SPDC Comfort Borno Flood Victims With US$1m
Dep Speaker Demands Report On Nigerians Displaced By Natural Disasters
OSSG Raises Alarm Over Murder Plot By APC Chieftain
NCC, SMEDAN, NAICOM, SEC, Others Set for SUPERNEWS SMEs Conf June 13
Sahara’s Tonye Cole resigns from GPHCDA
Oando opens ultra-modern petrol station in Lagos
Niger Delta Avengers: President Buhari Reads riot Act …considers the carrot and stick option
