Some civil society organisations in Nigeria, championed by the Civil Society Legislative Advocacy Centre (CISLAC) are urgently calling for immediate government action in response to the troubling revelations brought to light by the NEITI 2021 Oil and Gas Industry Audit Report.
In a press statement signed by the executive director of CISLAC, Auwal Musa Rafsanjani, he said the report has uncovered critical issues within Nigeria’s oil and gas sector that demand prompt attention to ensure transparency, accountability, and optimal national development.
Rafsanjani, who heads Transparency International Nigeria Chapter, emphasized that the report highlighted a decline in Nigeria’s ranking and score in the Transparency International (TI) 2021 Corruption Perceptions Index, underscoring recurring concerns regarding the Nigerian National Petroleum Corporation’s oversight of the nation’s shared assets.
He said the audit revealed alarming losses in crude oil due to theft, sabotage, and measurement errors, along with significant expenditures on PMS subsidies and quasi-fiscal items. Moreover, the report sheds light on unremitted or under-remitted federation revenues, misapplication of the 13% derivation principle, issues related to the Petroleum Industry Act (PIA), sector governance, and concerns regarding crude oil and gas barter arrangements.
CISLAC, therefore, called for immediate action, utilising the legal and regulatory framework provided by the PIA to mobilise civil society for advocacy, public debates, and vigilant monitoring of sector reforms. The organisation advocates for the simplification and widespread dissemination of the report’s key findings to enhance public awareness and drive demand for transparency and accountability.
The group called for the strengthening of the capacity of extractive-focused civic actors concerning essential strategies and sector-specific issues within the PIA, encompassing beneficial ownership, contract transparency, audit remediation, and metering.
The CSOs emphasised the critical importance of tracking and following up on remediations and host community development.
“In alignment with the PIA, CISLAC advocates for improved data management processes within government agencies reporting and conducting transactions in the sector. The organization also calls for a thorough investigation and audit into subsidy payments, Project Eagle Loans, and other loan arrangements in exchange for the nation’s crude oil and gas,” CISLAC said.
