M a r k e t N e w s

Nigeria: Oil Revenue Disclosure From Nigeria, Others Hits U.S.$1.3 Trillion

Posted on : Thursday, 6th November 2014


THE Nigerian government and its counterparts in Extractive Industries Transparency Initiative (EITI) compliance countries have disclosed over $1.3 trillion worth of revenue from oil, gas and mineral resources as at October 2014.
Besides, EITI has won the support of over 90 global investment institutions that collectively manage over $19 trillion, while the total financial flows from the extractive oil and gas industry in Nigeria from 2009 to 2011 amounted to $143.5 billion.
EITI, which made this disclosure in its latest fact sheet released, recently said that Nigeria and other 47 countries were already implementing EITI.
According to the international watchdog, countries implementing the EITI disclose information on tax payments, licences, contracts, production and other key elements around resource extraction.
It added that governments, together with companies and civil society, work to improve the management of natural resources by implementing the EITI Standard.
"Wealth from natural resources can lead to economic growth and social development in a country. Not disclosing information about this wealth can increase the risk of distrust, weak governance and conflict. Openness about how a country manages its natural resources is necessary to ensure that the resources benefit all citizens", it said.
The reported noted that implementing the EITI standard improves government systems and can lead to improved tax collection and budgetary planning.
"It signals commitment to the transparent and accountable management of the country's natural resources. A transparent and open government enhances citizens' trust.
"All companies are required to disclose the same information - same rules for all companies. Companies also benefit from an improved and more stable investment climate in which they can more effectively engage with citizens and civil society.
"Citizens benefit from receiving reliable information about their country's natural resources and enable them to hold the government and companies to account. Civil society is an essential partner in implementing the EITI".
It disclosed that over 90 major companies involved in oil, gas and mining are committed to supporting the EITI, through operations in implementing countries, international-level commitments and industry associations.
The EITI has won the support of over 90 global investment institutions that collectively manage over $19 trillion.
Country Coordinator (Executive secretary), Nigeria Extractive Industries Transparency Initiative (NEITI), Zainab Ahmed, disclosed that funding has been one of the major challenges to NEITI in the achievement of its objectives.
She said that the NEITI budgetary allocation from the Federal government is not sufficient to take care of the planned activities of the work plan, and as such NEITI depends on the donor agencies grants to supplement budgetary allocation. "However, in many cases funds are not accessible due to stringent policies and timing of the donor agencies".

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