Nigeria Extractive Industries Transparency Initiative, NEITI, has declared that the Nigeria Liquefied Natural Gas, NLNG, is yet to remit over $11.6 billion accrued as dividends between2009-2012 to the Federation Account.
NEITI also announced that Nigeria had lost about $1.1 billion to crude oil and product swap between the same period under review, disclosing further that Nigeria had spent over $7 billion on Joint Venture Cash Calls with international oil companies, thus suggesting that the federal government divest its shares in the Joint Ventures, incorporate them or transit them to other types of operating arrangements like the Production Sharing Contracts.
A statement issued in Abuja yesterday noted that NEITI Executive Secretary, Mrs. Zainab Ahmed, made the revelation when she led a delegation of NEITI management on a courtesy visit to Kaduna State Governor, Mallam Nasir El-rufai in Kaduna.
She said that the visit was in recognition of El-Rufai’s role in admitting Nigeria as a member of the global EITI in London in 2003, and their belief that he will help in facilitating the implementation of the various reports of NEITI.
She added that the visit was also part of a planned sensitization programme for key officers in the new administration on the principles, methods and benefits of Nigeria’s membership of the global Extractive Industries Transparency Initiative, EITI.
According to her, “data from the NEITI Audit reports show that Nigeria lost about 160 million barrels of crude oil valued at $13.7 billion to crude oil theft from 2009-2012”.
The records, she said, was gotten from three international oil companies; Shell Production and Development Company, Nigerian Agip Oil Company and Chevron Nigeria Limited.
During her remark, the NEITI Executive Secretary disclosed that overN4.8 trillion has been expended by government on subsidy payments alone, calling for a gradual phasing out of the subsidy scheme, even as she lamented that the scheme has become a drain pipe of government revenue by a few privileged individuals through all forms of manipulation and corrupt practices.
On NEITI’s recent Audit Report that examined how states disburse and use revenues accruing to them from their share of the federation account, the Executive Secretary told Governor El-Rufa’i that what NEITI found in the report was that most states in Nigeria have over the years depended on oil revenues and do little or nothing to generate revenues internally.
“The states are over reliant on oil revenues, as they have neglected the huge potentials abundant within. Some states have as little as three percent Internally Generated Revenue, IGR.
“They carry a huge recurrent expenditure and deploy very little to capital and social services like education, health care and security. What we saw from the report of the nine of the states sampled are shocking”, urging the governor to study the report for the benefit of Kaduna State.
Responding, Kaduna State Governor and member of the National Economic Council, Mallam Nasir El-Rufai, described NEITI as one of the few institutions of government set up for reforms that are still working because, “the organization by its unique composition was designed to succeed. We will study the reports and work with NEITI to reform our oil, gas and mining sectors.”
He, however, pledged his support and commitment to the EITI process in Nigeria as a global response to fight resource curse.
Governor El-Rufai said, as a member of the team set up by the National Economic Council to probe the inflows and outflows from the federation account, NEITI reports will be a reliable working document for the committee, assuring them that all unremitted funds arising from under payments, under assessments and other malpractices uncovered by NEITI in its reports will be recovered and used to improve the country’s infrastructure and living standards of the people.