NEITI Proceeds with Plan to Probe Data on Petrol Consumption, 13% Derivation

NEITI Proceeds with Plan to Probe Data on Petrol Consumption, 13% Derivation

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

To know the actual volume of petrol consumed by Nigerians daily as well as the prudence in the deployment of the 13 per cent derivation by Niger Delta states, the Nigeria Extractive Industries Transparency Initiative (NEITI) yesterday, said it was ramping up efforts to carry out a study in that direction.

Speaking during a presentation at a consultative forum with civil society and the media in Abuja, the Executive Secretary, NEITI, Dr Ogbonnaya Orji, said the study would help determine if the states were getting their fair share of the revenue.

The event also afforded the executive secretary the platform for NEITI to present a ‘Status Report’ on EITI implementation in Nigeria, seek wider inputs and views of civil society  and define the way forward.

Orji added that the planned research would also assist the organisation in finding out if the government was paying what they should to the beneficiaries as well as provide critical data required to monitor how much is being allocated monthly to oil-producing states and their management.

While operators in the sector say the volume of petrol leaving the depots are known, however the actual consumption figure remains a subject of controversy.

On the other hand, there is a public perception that the statutory 13 per cent derivation handed out to oil-producing states monthly is largely shrouded in secrecy.

Orji said: “It’s a special report we are commissioning this year alongside the oil and gas report. We are also commissioning a study on the actual PMS consumption in Nigeria. It is an independent report to establish the quantity of fuel Nigeria consumes and its costs, it will be used to manage the sector as subsidy is removed.”

In other matters, the executive secretary noted that NEITI received the EITI draft validation report of Nigeria’s progress in implementation, reviewed the draft report and had sent its comments to the EITI.

“The final report is being awaited from the EITI,” he stated.

He expressed joy that NEITI made inputs to the handover notes to President Bola Tinubu and also submitted copies of the policy advisory on the cost of fuel subsidy to the nation to the president through the office of the federal government’s scribe.

He noted that NEITI also sent a policy advisory on the way forward in the ongoing reforms in the oil, gas and mining industry to the president and the National Assembly.

With the recent dissolution of the National Stakeholders’ Working Group, he noted that NEITI was making a strong case to government to exempt it from dissolving all the federal boards, citing the existing framework and peculiar nature of NEITI operations.

According to him, the process for the conduct of the 2022-2023 industry reports has commenced with the reconciliation and update of all data and information on financial liabilities, including outstanding revenue remittances to the federation.

Related Articles