NEITI Makes Arrangement To Audit Oil And Gas Sector

The Nigeria Extractive Industries Transparency Initiative (NEITI) has said that it had put in place machinery for the 2012 comprehensive audit of the oil and gas industry.
NEITI’s Director of Communications, Mr Orji Ogbonnaya Orji, stated in Abuja that the agency had begun an open search for reputable, independent and experienced firms to handle the exercise.
“ The decision to embark on the procurement process for the next cycle of the industry audit is informed by the need to bridge gaps.

The Nigeria Extractive Industries Transparency Initiative (NEITI) has said that it had put in place machinery for the 2012 comprehensive audit of the oil and gas industry.
NEITI’s Director of Communications, Mr Orji Ogbonnaya Orji, stated in Abuja that the agency had begun an open search for reputable, independent and experienced firms to handle the exercise.
“ The decision to embark on the procurement process for the next cycle of the industry audit is informed by the need to bridge gaps.
“We also need to publish current information and data that reflect the payments made by oil and gas companies to the Federation Account in 2012,’’ he said.
Orji said that the audit would help monitor the revenue flow from companies to government and determine payments and receipts with respect to taxes, royalties, levies, and signature bonuses among others.
He said that the exercise would also expose lapses and carry out in-depth review of policies and procedures used by companies and relevant government agencies.
He added that the process of collection, computation, custody and management of funds during the period under review, would also be audited.
For the mining sector, Orji said that the audit would cover 2011 and 2012 transaction with specific focus on the quantities of solid minerals produced – extracted and mined –  exported and imported.
He stressed the need to compare all payments made by mining companies against receipts by government agencies in order to ensure transparency and accountability.
Orji explained that the on-going audit of the oil and gas and solid minerals sectors for the periods –   2009 to 2011 and 2007 to 2010 – had reached advanced stage of completion.
He expressed optimism that the current efforts would enable the agency to clear its audit backlog and fast-track the enthronement of transparency, accountability and governance of revenue in the country.
The NEITI is currently auditing the 2009 to 2011 oil and gas sector and the 2007 to 2010 solid minerals sector.