The Civil Society Legislative Advocacy Centre has called on the Federal Government to immediately resolve the revelations brought to light by the NEITI 2021 oil and gas industry audit report.
Executive Director of CISLAC, Auwal Musa Rafsanjani who made the call in a statement said the report has uncovered critical issues within Nigeria’s oil and gas sector that called for prompt attention to ensure transparency, accountability and optimal national development.
He also expressed concern over the government’s refusal to investigate and punish Nigerians who collaborated with foreign firms to defraud the country in high profile corruption activities which attracted global attention.
Sitting the alleged $80 million bribery by Glencore, a multinational mining firm as well as the $1 billion Eni and Royal Dutch Shell for the acquisition of OPL 245 offshore field, Rafsanjani, who heads Transparency International Nigeria Chapter, noted that the NEITI audit report underscores recurring concerns regarding the oversight role of the Nigerian National Petroleum Company Limited over the nation’s assets.
“The audit findings 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 percent derivation principle, issues related to the Petroleum Industry Act, sector governance, and concerns regarding crude oil and gas barter arrangements,” he said.
While calling for immediate actions to avert the continued occurrences of corrupt activities in the sector, CISLAC asked the government to use the legal and regulatory framework provided by the PIA to mobilize civil society for advocacy, public debates and vigilant monitoring of sector reforms.
The organization also advocated for the simplification and widespread dissemination of the report’s key findings to enhance public awareness and drive demand for transparency and accountability.
The non-profit legislative advocacy equally urged the government to strengthen 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 organization emphasized the critical importance of tracking and following up on remediation 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, the Nigerian chapter of Transparency International (TI), is urging the National Assembly to provide effective oversight of the implementation of the extractive sector legal framework and take serious action on NEITI audit report recommendations,” the statement added.
CISLAC further urged the Federal Government to investigate and hold public officials accountable for accepting nearly $80 million in bribes from Glencore, a multinational mining and commodity trading company.
Insisting that despite Glencore facing repercussions for bribery, public officials on the receiving end have not faced any consequences.
Likewise, CISLAC pointed to the over $1 billion paid in bribes by Eni and Royal Dutch Shell for the rights to the OPL 245 offshore oilfield to members of President Goodluck Jonathan’s administration.
“This questionable deal could cost Nigeria as much as $5 billion due to poorly negotiated fiscal terms, in addition to the $1.1 billion already lost due to corrupt payments, as outlined by Italian prosecutors,” CISLAC noted.
It expressed its commitment to fostering positive change and upholding the principles of transparency, accountability and good governance within Nigeria’s oil and gas sector.
