The Civil Society Legislative Advocacy Centre (CISLAC) is urgently calling upon the government to take immediate action in response to the deeply concerning revelations unveiled by the NEITI 2021 Oil and Gas Industry Audit Report.
In a press release signed by Auwal Musa Rafsanjani, Executive Director of CISLAC, the organization emphasizes that the report has exposed critical issues within Nigeria’s oil and gas sector that require swift attention to ensure transparency, accountability, and optimal national development.
Rafsanjani, who leads the Transparency International Nigeria Chapter, underscored that the report has brought to light a decline in Nigeria’s ranking and score in the Transparency International (TI) 2021 Corruption Perceptions Index. This decline highlights ongoing concerns regarding the Nigerian National Petroleum Corporation’s stewardship of the nation’s shared assets.
“The audit findings have uncovered distressing losses in crude oil due to theft, sabotage, and measurement errors, in addition to substantial expenditures on PMS subsidies and quasi-fiscal items. Furthermore, the report sheds light on unremitted or under-remitted federation revenues, misapplication of the 13% derivation principle, issues related to the Petroleum Industry Act (PIA), sector governance, and concerns surrounding crude oil and gas barter arrangements.
“CISLAC is urgently calling for action, utilizing the legal and regulatory framework provided by the PIA to rally civil society for advocacy, public discourse, and vigilant monitoring of sector reforms. The organization advocates for the simplification and wide dissemination of the report’s key findings to enhance public awareness and stimulate the demand for transparency and accountability.
“Moreover, the non-profit legislative advocacy group urges the enhancement of the capacity of civic actors focused on the extractive sector concerning vital strategies and sector-specific matters within the PIA, including beneficial ownership, contract transparency, audit remediation, and metering. CISLAC underscores the crucial importance of tracking and following up on remediation efforts and host community development.
“In alignment with the PIA, CISLAC calls for improved data management processes within government agencies involved in reporting and conducting transactions within the sector. The organization also insists on a comprehensive investigation and audit into subsidy payments, Project Eagle loans, and other loan agreements in exchange for the nation’s crude oil and gas.
“CISLAC, as the Nigerian chapter of Transparency International (TI), is urging the National Assembly to provide effective oversight of the implementation of the legal framework for the extractive sector and to take substantial action on the recommendations outlined in the NEITI audit report,” the statement concludes.
The statement also presses the Nigerian government to investigate and hold accountable public officials who allegedly accepted nearly $80 million in bribes from Glencore, a multinational mining and commodity trading company.
Despite Glencore facing repercussions for bribery, the officials on the receiving end have not faced any consequences. Similarly, CISLAC points to over US$1 billion in bribes paid by Eni and Royal Dutch Shell for the rights to the OPL 245 offshore oilfield to members of President Goodluck Jonathan’s administration. This contentious deal could potentially cost Nigeria as much as US$5 billion due to poorly negotiated fiscal terms, in addition to the US$1.1 billion already lost due to corrupt payments, as outlined by Italian prosecutors.
CISLAC remains unwavering in its commitment to driving positive change and upholding the principles of transparency, accountability, and good governance within Nigeria’s oil and gas sector.
Lastly, CISLAC commends the NEITI Secretariat for its ongoing efforts to expand transparency and accountability within the extractive sector.