The Economic and Financial Crimes Commission (EFCC) has warned oil and gas , solid minerals and extractive companies and agencies against non-compliance with the Nigeria Extractive Industries Transparency Initiative (NEITI) audit processes.
Nigeria’s anti-graft agency, it will investigate oil & gas companies and government agencies over their failure to comply with the NEITI Industry Audit.
The chairman of the EFCC, Olanipekun Olukoyede, disclosed the planned action at the presentation of the 2022 and 2023 independent oil and gas industry report, which was released on September 26, 2024.
Only 198 oil firms and government agencies complied with the audit process which was an improvement when compared to the previous audits.
The EFCC warned all industries players, oil and gas companies and relevant government agencies that refusal or resistance to comply fully with the annual NEITI Industry Audit process is considered by the EFCC as a costly mistake adding that where the work of NEITI stops marks the beginning of EFCC investigations, according to a statement issued by NEITI.
Olukoyede said the EFCC is working closely with NEITI for further necessary action against the offenders.
The EFCC boss further revealed he signed the remittance of a recovery of N1bn to the beneficiary agency of government following their assessment of a NEITI Report findings.
Recall that NEITI said it uncovered $6.07 billion, N66 billion in unpaid royalties and gas flare penalties, due to the Nigerian Upstream Petroleum Regulatory Commission as collectable revenues by August 31, 2024.
A breakdown further showed that outstanding petroleum profit taxes, company income taxes, withholding taxes, and VAT due to the Federal Inland Revenue Service (FIRS) amounted to $21.926 million and N492.8 million as of June 2024.
NEITI disclosed that over five trillion standard cubic feet of gas were produced in Nigeria in the last two years covering 2022-2023.
The report showed that 2.521 trillion standard cubic feet were produced in 2022, representing a decline when compared with 2.744 trillion standard cubic feet (SCF) produced in 2021 while in 2023, the gas sector recorded a total production of 2.491 trillion SCF, representing only one per cent drop in gas production year-on-year.
The report also disclosed a reduction in gas flare as a total of 137.361 billion standard cubic feet of gas was used as fuel in 2022, according to data provided by only 32 gas companies.
NEITI said that on the contribution of the oil and gas industry to employment opportunities, only 6,728 persons were employed in the sector out of which 83 per cent were men while only 17 per cent were women.
NEITI disclosed, “In the same direction, the sector witnessed a steady decline on the sector’s contributions to country gross domestic product (GDP) A trend of the contribution of oil and gas sector to GDP in Nigeria from 7.32 per cent to 4.34 per cent in 2022 and 5.75 per cent to Nigeria’s total GDP of N202.36 trillion ($478.06 billion) as at last year 2023. The Report attributed the decline to dwindling oil production arising from insecurity, oil theft and sabotage.”
Speaking at the event, NEITI quoted the chairman of House of Representatives Committee on Petroleum Downstream, Ikenga Ugochinyere as saying that a private member bill to amend NEITI Act 2007 to align with the current realities sponsored by him at the floor of the House of Representatives has already scaled through first reading.
Ugochinyere called on stakeholders to partner with his committee to amend the law.
The executive secretary of NEITI, Ogbonaya Orji, lauded President Bola Tinubu Administration’s support for NEITI. Orji said Tinubu has ensured non-interference with NEITI’s role in promoting transparency.
Orji announced that NEITI has embarked upon establishing a data centre to serve as a one-stop shop for information and data on Nigeria’s extractive sector.
