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Civil society challenges FG on oil transparency

A coalition of civil society groups, under the aegis of Publish-What-You-Pay Nigeria (PWYPN), has challenged the Federal Government to look beyond the recent validation as EITI Compliant country and ensure that the country meets its obligations and commitments to transparency and accountability in the extractive industry.
Chairman, Executive Board of the advocacy group committed to the public declaration of revenues earned by government from operations of their extractive industries, Faith Nwadishi, said in Abuja during a meeting with the management of the Nigerian Extractive Industry Transparency Initiative (NEITI) that the delay in releasing the final report of the 2006-2008 audit of the country's oil and gas industry appears to suggest Nigeria is yet to move away from the pre-validation era.

Though the PWYPN boss acknowledged the changes that have taken place in the quality of NEITI operations in the past six months since the reorganization of the Secretariat and appointment of professionals to key positions, she said the agency should ensure that it fulfills its mandate as spelt out in NEITI Act 2007.
"When EITI started, Nigeria was a model. But, after a while the country appears to have derailed. There are some provisions in the NEITI Act 2007 that are not being observed. For instance, the Act provides that latest by September 30 every year, NEITI should send an activity report to the National Assembly on the status of various operations in the extractive industry. The National Assembly has denied ever receiving any such report from NEITI since its inception.
"The Act also provides that there should be an annual report on the previous year's industry audit about 60 days before the end of the year. With 2011 fast coming to an end, and the audit report for 2006-2008 is yet to be published, what would happen to the reports for 2009 and 2010?
"Nigeria's extractive industries transparency audit system is touted as one of the most robust in the world. If we as a country set those targets by ourselves, we should be seen to be meeting those targets. We should not go back to the experience prior to when the country was given validation. We (the country) gave ourselves the task (to ensure transparency and accountability in the operations of the extractive industry), so we should not expect to get a pat on the back for being granted validation as an EITI compliant nation. Rather, we should be seen as meeting the targets," she said.
"CSOs were happy that Nigeria was granted EITI validation. But, since validation, what are the gains or dividends of validation to the country? What would the average Nigerian look up to as the change the new status has brought for the country, and where we are going?" he added.
Besides, she drew attention to several remedial measures recommended in the 1999-2004 audit report that are yet to be taken, pointing out that the group's inquiries on the issue of $5billion reported to have missed from the revenues that the Federal Government should have earned is yet to be responded to by the Central Bank of Nigeria (CBN).
Though she expressed happiness that the Freedom of Information (FOI) Bill was finally passed into law, Ms Faith said the group was interested in developing ways the provisions of the law could be used in promoting the transparency objective and mandate of NEITI.
Promoting transparency
She pledged to work with NEITI to ensure that the country does what is right about the management of the revenues earned from the country's extractive industry, expressing the hope that the Nigeria would soon emulate the United States government that recently passed a law mandating all companies registered in the American stock exchange to publish the balance sheet of their operations for the consumption of the public.
"From next year, we should be able to log onto the website of the United States stock exchange to download the balance sheet of American companies, like Chevron and ExxonMobil, operating in Nigeria, like what is happening in Canada and other European countries.
Responding, NEITI's director, Communications, Orji Ogbonanya Orji, who represented the Executive Secretary, promised the agency's committed to meeting its mandate, saying efforts to ensure the release of the 2006-2008 audit report are still on course, while process for the 2009-2011 audit has since commenced.
On the Petroleum Industry Bill (PIB), Mr. Orji said the agency's recent statement urging members of the National Assembly to ensure that they promoted Nigeria's interest in their deliberations on the proposed law was informed by reports that there were more than one version of the Bill in circulation, which tended to create serious doubts in the minds of most Nigerians.
He said the agency is currently studying a copy of the Gazetted Bill before the National Assembly to see how the country's interests are being protected by its provisions, though he said NEITI still stands by its information earlier that the lawmakers should be responsible in their deliberations in the interest of the country.
On its quarterly report, he said a copy was recently sent to the Presidency as required by law, while the one to the National Assembly would soon be done.
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