The Nigeria Extractive Industries Transparency Initiative (NEITI) and Nigerian National Petroleum Corporation (NNPC) has constituted a joint committee to address the issues raised in reports published by NEITI.
According to Waziri Adio (pictured), NEITI’s executive secretary, the committee will look into issues like outstanding revenues to be remitted to the federation account, the methodology being used in the pricing of federation equity crude and issues surrounding the management of the daily allocation of 445,000 barrels of crude oil to the NNPC for domestic use.
There is also the issue of divestment of Nigeria’s share in some joint venture assets. The joint committee is also to examine NEITI’s expectation from the NNPC on proactive disclosure of information and data on its operations in an open and accessible format.
“This is a win-win for all. It is good for the corporate image of the NNPC, good for NEITI and good for Nigeria. It is not really good for NEITI to be seen as an island of transparency and the rest is seen as the landscape of opacity. We need everyone to embrace and practice transparency,” Adio said.
“We have moved from open hostility to grudging acknowledgement to where we are now. It took NEITI and the NNPC 15 years to get to this point. That is what EITI is about – collaboration and not antagonism”.
“This new spirit of collaboration and working together to solve problems, of pushing the frontiers of transparency and accountability for the greater good of our country should be sustained.”
In his remarks, Mele Kyari, the group managing director of the NNPC, said the new relationship between both entities is based on mutual respect for good governance and extractive revenue transparency in Nigeria.
“We are part of the working group on commodity trading and many other EITI interventions globally. We are committed to ensuring that the observations in the NEITI reports do not repeat themselves many of which are due to lack of communication. We have a responsibility to manage the resources of this country in an equitable and responsible manner,” he said.
“This is a problem-solving exercise, not a confrontation or entrenched position. Ask questions where necessary and provide answers where needed. Clarify issues, because this is a national challenge and changes must be effected,” Kyari charged the joint committee.
Dieter Bassi, the director of technical services, will lead NEITI’s team while NNPC’s team is led by Sunday Fakasi of the governance, risk and control division.
The committee is expected to validate documentary evidence on issues that have been resolved, identify outstanding remedial issues and areas of disagreement between NNPC and NEITI.
The committee is also expected to provide contextual information on NNPC’s platforms and develop a work plan with realistic targets for addressing unresolved issues.
The joint committee has one month to complete its assignment.