The Civil Society Legislative
Advocacy Center decries the
recurrence of damning revelations
from the 2013 Audit Report of
the Nigeria Extractive Industries
Initiative (NEITI) which was
released on Monday, May 23,
While the audit covers the
period that predates this
administration, They believe that
government is a continuum and
that every government owes the
citizens of Nigeria the duty of
recovering monies due to it for
purposes of providing them with
CISLAC in a Statement
signed by Auwal Musa Ibrahim
(Rafsanjani) Executive Director,
CISLAC is sad that the sums of
$3.8billion and N358.3billion
were recorded as outstanding
revenues from the Nigerian
National Peteroleum Corporation
(NNPC) and its subsidiaries in
2013. This has become recuring
since the very first NEITI oil and
gas audit report covering 1999-
2004.It is even more worrisome
that in spite of the existence of
an IMTT of which the NNPC is
part of, the case of unremitted
revenues still persists. These
unremitted revenues arise from
unpaid consideration from the
divested Oil Mining Licenses,
Cash-call refunds from NAPIMS and NPDC crude oil liftings from
Joint Venture Agreements.
CISLAC finds it scandalous
that up to $12.9 billion payments
by the Nigeria Liquefied Natural
Gas (NLNG) to NNPC between
2005 and 2013 was not remitted
to the Federation Account as at
2013. That the figure continued
to rise despite repeated
recommendations in previous
audit reports on the need to fix
the problem depicts the level of
impunity at the corporation. Put
differently, we are worried by
NNPC’s continuous retention of
monies meant for the Federation
Account, in violation of Section
162(1). This is one constitutional
issue President Buhari
administration and the NNPC
leadership need to demonstrate
to the citizens that it is fixing.
We are not surprised that the
sum of $5.966 billion and N20.4
billion were recorded as revenue
losses to the Federation Account
in 2013 due to Offshore Processing
Agreement (OPAs), crude swap
and crude theft. While we have
repeatedly flagged the inefficient
nature of the OPAs, our concern
is that despite their cancellations,
there are no indications that
anyone has been made to
take responsibility for this
monumental loss to the nation
which now stands in dire need
of revenues. The investigation
by the National Assembly with
all its hope of identifying culprits
for necessary prosecution and
conviction is yest to yield result..
We are concerned that the
NNPC has continued the crude
swap arrangement to ensure
availability of refined products,
thus prompting worries aboutany
guarantee that this heamorhage is
not continuing till date. CISLAC is
aware that crude theft still persists
in spite of repeated statements by
government officials to bringing it
to an end.
We find the loss of $599.98
million due to under-assessments
or under-payments of petroleum
profit taxes and royalties by oil
and gas companies due to the
absence of a new fiscal regime to
succeed expired MOUs as at 2013
highly scandalous. This is because
it betrays a lack of patriotism,
commitment and seriousness
on the part of the relevant
government officials, including the National Assembly that has
not seen the need in prioritising
the passage of the Petroleum
Industry Bill since 2008.
CISLAC considers the payment
of only $100 out of $1.8 billion,
by the NPDC from divested
Federation Equity from 8 OMLs
and nonpayment of a dime from
4 other OMLs. The organization
also considers the payment
of Cash Calls by NAPIMS for
already divested OMLs as curious
and unfortunate, given that it robs
Nigeria of its rightly hard earned
CISLAC laments that the
recurrent issues of the lack of
metering facilities, faulty domestic
crude allocation, non-remittance
of funds due to the federation
account and other findings
continue to recur in successive
NEITI audit reports drawing the
same recommendations in spite
of several years of reporting and
advocacy. We consider this lack of
value for money for the Nigerian
people. While some progress
may have been made with EITI
implementation in Nigeria, the
slow pace of reforming the issues
above undermines the reals essence of the NEITI process as
much as it depicts a lack of value
for money, especially in the face
of cost of audit and dwiddling
We call on the Federal
government to mainstream
the NEITI findings and
recommendations into its anticorruption
efforts and proceed to
recover all outstanding revenues,
including the balance of $1.7
billion outstanding from the
NPDC for the divested OMLs.
The Government should also
ensure that deliberate policies
are pursued to unbundle the
NNPC and strip it of its powers
to withhold funds under the Act
establishing it.
CISLAC calls on the National
Assembly should, upon the
receipt of the NEITI audit report
for 2013, to table it for debate in
plenary and, in line with this,
expedite the passage of the PIB.
NASS should also, through the
relevant Committees, intensify
their oversight of the responsible
institutions to ensure that remedial
actions are taken to prevent the
loss of valuable revenue needed
for national development

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