The Nigeria Extractive Industries Transparency Initiative (NEITI) has commended President Bola Ahmed Tinubu for issuing Executive Order 9 mandating the direct remittances of all revenues accruable to the government from tax oil, profit oil, profit gas, and royalty oil from Production Sharing Contracts, profit sharing, and risk service contracts to the Federation Account.
Executive Secretary, NEITI, Musa Sarkin Adar, in a statement issued friday in Nigeria’s federal capital, abuja, described the development as a bold step in the on-going fiscal reforms to improve financial transparency, strengthen accountability systems targetted to mobilise resources for the much-needed development for the benefit of citizens.
Sarkin Adar who disclosed that the presidential directive is consistent with both the text and intention of Section 162 of Nigeria’s constitution said the executive order clearly falls in line with NEITI’S longstanding advocacy
for all revenues accruable to the government to be paid into the Federation Account in accordance with the provisions of the constitution.
The executive secretary also noted that in a special report previously published by NEITI in 2017 titled “Unremitted Funds, Economic Recovery and Oil Sector Reform”, NEITI found that more than $20 billion of remittances due to the Federation were yet to be remitted to government declaring that this non-remittance was a significant contributor to government’s fiscal challenges within the period. These revelations according to the ES led the government’s high-level engagement, by both the executive and legislature, with NEITI to explore the recovery of these funds and to consider necessary reforms to end the practice.
Sarkin Adar in the statement affirmed that this presidential directive is therefore a reflection of the actualization of a major milestone of EITI implementation in Nigeria.
“NEITI recognizes that the Petroleum Industry Act, which was achieved after more than two decades of stakeholders’ painstaking efforts, remains the primary legislation for the oil and gas industry and NEITI’s relentless commitment to the enactment of the PIA is well documented.
“We want to state that the cardinal objectives of transparency, efficiency, and accountability, which informed NEITI’s advocacy for that legislation, are being advanced by the presidential directive. We therefore call on Mr. President, the National Assembly, and other stakeholders to facilitate the speedy amendment of relevant sections of the Petroleum Industry Act, 2021, to bring the principal legislation up to date with the new reforms and current realities”. Adar noted.
In his further reaction to the new executive order, Ader reiterated the Agency’s commitment to work closely with all stakeholders, the anti-corruption community, development partners to consolidate the gains and deepen ongoing reforms. n “NEITI’s objectives and expectations will continue to be based on our institutional mandate and support for the transparent, accountable, and efficient management of Nigeria’s mineral resources for the benefit of Nigerians represented by the federating units.
