Expedite Remediation Actions from NEITI Audit Reports, FG Told

By Abimbola Akosile

The Federal Government has been urged to expedite the implementation of remedial actions arising from Nigeria Extractive Industry Transparency Initiative (NEITI) audit reports to justify Nigeria’s participation and investment in the NEITI process.

Also, the Executive and the Legislature have been told to put befitting regulations and fiscal regime in place that would regulate the solid minerals sector to ensure maximum government revenue and instill transparency and accountability in the vital sector.

The calls were contained in a communique issued by the Civil Society Legislative Advocacy Centre (CISLAC), which organised a one-day training for the media on communicating NEITI report outcomes and remediation issues with support from Oxfam in Nigeria.

The training, which drew over 25 participants from various media organisations, had the Director of Communications of the NEITI, Orji Ogbonnaya Orji, the Chairman Editorial Board of THISDAY Newspapers Mr. Segun Adeniyi, and Team Leader, Mrs. Obiageli Onuorah, as Resource Persons.  Programme Officer, Governance, Oxfam in Nigeria, Mr. Celestine Odo, was also in attendance. There were presentations and the session was interactive with robust interventions.

Participants at the event noted that in spite of Nigeria’s implementation of the NEITI process and four Audit cycles, the country continues to witness leakages, corruption and scandalous financial losses in the extractive industry sector of the our economy annually.

“Between 2004 and 2011, over N1billion has been expended on the conduct of several audit reports to promote transparency and accountability in the oil sector. However, the recommendations of the auditors have been ignored and greeted with poor and ineffective implementation resulting in impunity.

“Presently, there no fiscal regime governing the solid mineral sector leaving the companies with discretion to apply arbitrary tax rates, resulting in huge revenue losses the government and people of Nigeria”, noted the communique, which was signed by Executive Director, CISLAC Auwal Ibrahim Musa aka Rafsanjani.

To him, “in spite of the establishment of the Inter-Ministerial Task Team (IMTT) for the purpose of implementing remedial issues from audit reports, Nigerians are yet to feel the impact of their interventions calling to question, their commitment  level of effectiveness.

“Inadequate disclosure of the information, poor record keeping and accounting practices statements, low capacity in some government agencies weak and inter agency collaboration, resistant by regulatory bodies, and delay in passage of Petroleum Industry Bill (PIB) into law continues to hinder efforts to promote transparency in the oil and sector” he added.

Among other recommendations, the Ministry of Solid Minerals Development was urged to establish a more proactive and coordinated regulatory framework in the mining sector to curb the levels of illegal, mining and streamline the activities of artisanal and small scale miners to safeguard the environment and health of vulnerable communities in mining communities

The newly invigorated IMTT was also enjoined to be alive to their responsibilities and expedite remedial actions. Agencies on the IMTT should show commitment and the NEITI secretariat should provide regular updates on the progress recorded in the implementation of remediation to ensure that NEITI audit reports do not remain glorified audit, the forum also recommended.

The Civil Society was urged to continue to demand for accountability and collaborate with the media to ensure follow up on NEITI recommendations until results are achieved and sanity returns to our extractive sector. The media was also urged to be more creative and analytical in their coverage of the extractive sector, and to deliberately track and monitor the implementation of remediation between budget cycles.