A Review of the Nigerian Energy Industry

NEITI seeks boost to funding, demands 5% of recovered monies

Oscarline Onwuemenyi 30 September 2015, Sweetcrude, Abuja – The Nigeria Extractive Industries Transparency Initiative, NEITI, is demanding modification of existing laws that will allow it double civil money penalty on erring mining, oil and gas companies for providing falsified information regarding production volumes, sales and income.
NEITI-logoNEITI’s Legal Director, Mr. Peter Ogbobine, who disclosed this in an overview of proposed adjustments to the NEITI Act 2007 at a round table in Abuja, described as inadequate the limitation of civil sanction to only about N20 million given the value of transactions involved in the oil and gas industry, even as he proposed 12 areas of amendment.
He regretted that in spite of the fact that NEITI has broken new grounds and brought more transparency to the extractive sector, the desired end of accountability has not been significantly achieved.
He acknowledged that the poor funding from federal government has greatly hindered its operation.
Accordingly, Ogbobine, NEITI is also seeking an amendment to its enabling laws that allows it to retain five per cent of monies recovered from oil companies due to findings of its audit report of the sector.
To this end, the initiative advocated that five per cent of monies accruing to Natural Resources Development Fund should be made available to it, to further complement their efforts.


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