The Nigerian Extractive Industries Transparency Initiative (NEITI) wants President Muhammadu Buhari to prioritise the recovery of the $18.1 billion unremitted oil and gas funds from oil and gas companies operating in Nigeria.
The Executive Secretary of NEITI, Mrs. Zainab Ahmed, said in Abuja on Tuesday that over $7.5 billion, representing underpayments, under-assessment of taxes, royalties and rents as revealed by several independent audit reports of the agency, as well as $11.6 billion which represents outstanding total dividends arising from loans and interest repayments from the federal government’s investment in the Nigerian Liquefied Natural Gas (NLNG) company are still outstanding.According to her, issues around their recoveries have not been adequately addressed in the past.
NEITI’s head of communications, Ogbonnaya Orji, disclosed in a statement that NEITI had made this call to Buhari at an oil and gas conference, where agenda for the new government with regards to its expected reform of the sector, was articulated.
Ahmed believes that the money if recovered would come handy for the administration, which is in dire need of funds to tackle the complex problems facing the nation.
She said that the recovery of the funds should be pursued vigorously with the political will and seriousness it deserves.
She said that the transparency agency is willing to assist the federal government with institutional support on recovering the funds, especially with regards to the provision of information and data needed for the recovery.
She said, “Our 2012 audit report discovered that total dividend loans and interest repayment from NLNG paid to the NNPC in 2012 was $2.8 billion. However, in the course of NEITI’s audit, NNPC was unable to provide any evidence to show that the funds were remitted to the federation as required by law.
“The total amount received by NNPC from NLNG under the same circumstances which have not been remitted to the Federation Account stands at $11.6billion,” Ahmed said.
NEITI equally called for a full investigation into the transfer of eight oil wells to the Nigerian Petroleum Development Company (NPDC) in 2010 and 2011.
“The position of NEITI is that the whole transaction was not transparent. The federal government needs to carry out a full investigation to ascertain the actual cost of the oil blocks and revenue loss to the federation in the whole transaction.”
The NEITI’ boss in Nigeria urged the government to scrape fuel subsidy, which she said would the nation from huge revenue losses and embarrassment that the management of the exercise has represented.
“It has been the position of NEITI that the oil subsidy regime is fraudulent that should not be allowed to stand any longer, the amount spent so far annually is enough to repair the refineries or even build new ones. Oil subsidy should be removed,” she said.
