Recently, top management of the Nigeria Extractive Industries Transparency Initiative (NEITI), led by its Executive Secretary, Mrs. Zainab Ahmed, paid a courtesy call on the Chairman of the Economic and Financial Crimes Commission (EFCC), Mr. Ibrahim Lamorde, at the headquarters of the anti-graft agency. The decisions reached after extensive deliberations by both bodies signal difficult days ahead for the sector’s scammers. CHUKA ODITTAH reports
Chilling revelations of how some well-placed persons and institutions of government connived to mismanage the nation’s 2011 fuel subsidy funds are still fresh in the minds of many Nigerians.
The genesis of these unsettling discoveries was the public hearing organised by an ad hoc committee of the House of Representative investigating alleged colossal mismanagement of the nation’s fuel subsidy fund.
Prior to this, the Nigeria Extractive Industries Transparency Initiative (NEITI) has long been in the vanguard of whistle blowing activities in the extractive industry which comprises the oil, gas, and mining sector.
NEITI which doubles as watch dog in that sector of the economy, helped to bell the cat when the public knew little or nothing about the discrepancies in the book keeping practises of the Nigeria National Petroleum Corporation(NNPC), the Petroleum Pricing Regulatory Agency (PPRA), the Central Bank of Nigeria (CBN), and the Accountant-General of the Federation. These pivotal government institutions were known to have kept conflicting data of the nation’s oil and gas import and exports.
In one of the sessions during the probe into the subsidy mismanagement totaling about N1.7 trillion, NEITI board chairman, Prof.? Assisi Asobie, categorically faulted the payments made in respect of fuel subsidy by NNPC. His argument was that the payment was in violation of due process and lacked transparency.
He accused the NNPC of deducting directly from the domestic crude proceeds before remitting the rest to the federation account. According to Assisi, the subsidy ought to have been made from the Central Bank of Nigeria (CBN).
“Payments for subsidy should only have been made from the Central Bank of Nigeria, through the Petroleum Equalization Fund.?
Approval for such payment could only be effected upon the approval of the Accountant-General of the Federation (AGF), with the approval of the Petroleum Products Pricing Regulatory Agency (PPRA), he noted.
The NEITI chairman further argued that the NNPC should have drawn claims for subsidy after verification of its claims by the PPRA and not the other way round.
In the stream of revelations and counter revelations that characterised the fuel subsidy scam, the Nigeria Customs and Excise also came forward with a damning report of the NNPC, accusing the corporation of running a cabal.?
According to the deputy comptroller of Customs, Mr. Ndubuisi Nwagu who represented the Comptroller General, NNPC never went through Customs check.
“All importation documents including invoices on premium motorised spirit are not passed through the Customs. Any time the Customs tries to enforce the rules, we are politely advised to stay action to enhance free flow of petrol into the country. Though the Customs is a member of the PPRA, we are never allowed to be part of major decisions making”, he said.
But Minister of Petroleum, Allison Deziani Allison-Madueke refuted allegations of wrong doings, maintaining that the corporation under her watch did what was allowed by the constitution. “ I need to say clearly that we have done nothing unconstitutional as a ministry, particularly regarding deductions at source.
We do not take money from the federally appropriated revenue”, she replied. But an audit carried out by KPMG listed a catalogue of impropriety which it said was observed on the part of the NNPC, PPRA, CBN, and a host of oil giants. So far, a lot of horse trading has been going on behind yhe scene to compel relevant institutions from pulling the strings of justice against those found wanting in the fuel subsidy saga.
Apparently consistent with the pursuit of its mandate as a watchdog, NEITI recently visited the headquarters of the Economic and Financial Crimes Commission(EFCC) where it opened discussions that may forever change the land mark of the war on graft in Nigeria.
A delegation of NEITI’s management led by its Executive Secretary,Mrs Zainab Ahmed requested for collaboration with the EFCC in curbing corruption in the oil,gas and mining sectors. Ahmed explained that the aim of such partnership was to bolster the anti corruption war and ensure greater transparency in the extractive industry.
Zainab Ahmed during deliberations with the EFCC Chairman emphasised the need to impose sanctions on erring parties who mismanage the nation’s oil, gas and minining resources, owing to their centrality to the economy.
According to her, although the NEITI Act of 2007 empowered it to recommend sanctions on erring entities, the agency lacked capacity to investigate and prosecute offenders.
“This is why stronger collaboration with other anti-graft agencies like the EFCC becomes necessary. NEITI will want a Memorandum of Understanding with EFCC, the content of which shall include collaboration to enforce the NEITI Act”, she said.
To further cement the partnership and ensure that it worked, the two institutions agreed to the need? to set up a NEITI desk at the EFCC office dedicated to facilitating prompt prosecution of offenders.This was also in addition to enhancing information sharing as well as stronger inter agency partnership.
EFCC chairman, Ibrahim Lamorde in his remark described NEITI’s visit as the beginning of a robust working relationship with the anti-graft agency. He expressed dismay at the fact that Nigeria lacks accurate data on how much was being generated from the sale of crude and gas resources each day.
“Figures being reeled out from one agency to the other are always at variance and contradictory of one another. There should be a way of determining how much crude is being generated and what quantity of crude is being exported to the international market.
“I believe that installing a meter to see clearly how much oil is being taken out of Nigeria is a thing we should consider. By way of going forward, we are going to establish the NEITI desk in EFCC to address issues that will come from there.
“It couldn`t have been better than now for us to come together to establish a stronger partnership with a view to see that we achieve the set mandate of both agencies.
You have the expertise in the extractive industry, we would assist with the investigation and prosecution. Coming together of the two organisations will bring very strong force to bear on some issues in the extractive industry, especially oil and gas sectors”, he said.
In the light of these resolutions, it is not likely that impunity will continue to reign supreme in management of the nation’s mineral resources. Perhaps, judgement beckons quicker than anyone thought.