The Nigerian Extractive Industries Transparency Initiative (NEITI) is embarking on a nationwide audit of the oil, gas, and mining industries. This initiative signifies a crucial step towards bolstering domestic resource mobilization efforts for the Nigerian government.

Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, announced the audit during a workshop held in Port Harcourt for companies operating in the South-South and South-East zones. He emphasized that NEITI’s core mandate includes promoting transparency and accountability within the extractive sector, which is essential for maximizing domestic resource mobilization.

“Our focus on domestic resource mobilization is central to this audit,” Dr. Orji explained. “By ensuring transparency and identifying areas for improvement, we can assist the government in collecting more revenue from the extractive industries.”

Transparency and Scrutiny Across the Extractive Sector

To ensure a comprehensive and inclusive audit process, NEITI is organizing workshops across the country. These workshops target companies and government agencies involved in the extractive sector, aiming to educate them about audit procedures. The workshops will provide clarity on the scope of the reports, the data required, and the reporting templates that companies must utilize.

The reports generated from the audit will delve into various aspects of the extractive industries, including:

• The flow of revenue between major players in the oil, gas, and mining sectors.
• Financial, physical, and process-related issues within companies and relevant government agencies.
• Verification and validation of information on payments made by companies to the government.
• The quantities and volumes of crude oil produced.
• Taxes, royalties, and social contributions made by companies.

Focus on Solid Mineral Resources

The 2022-2023 NEITI report will also include a dedicated section on the solid minerals sector. This section will meticulously track data on:

• The quantities of solid minerals mined, quarried, processed, exported, and imported.
• Extractive industries sector funds collected by various government agencies.
• Reconciliation of payments made by companies to the government, encompassing royalties, ground rents, taxes, and levies.

NEITI’s audit and reporting process strictly adheres to the global Extractive Industries Transparency Initiative (EITI) standards. The ultimate goal is to shed light on revenue flows within the extractive sector and ensure the government receives its rightful share of the nation’s resource wealth. By promoting transparency and accountability, NEITI’s initiative has the potential to significantly bolster domestic resource mobilization efforts in Nigeria.

Source: Vanguard