Sunday, August 16, 2015

NEITI charges NNPC GMD to recover $11. 6bn unremitted NLNG funds

NEITI charges NNPC GMD to recover $11. 6bn unremitted NLNG funds

The Nigerian Extractive Industries Transparency Initiative (NEITI) Sunday charged the newly appointed Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu to recover the unremitted $11.6 billion of the NLNG funds into the federation account.
NEITI made the charge in a statement issued by the Director of Communications, Dr. Orji ogbonnaya Orji, as it commended the restructuring going on the oil sector.
According to the Extractive Industry, the reform going on at the NNPC was earlier researched and suggested by it.
The statement reads in part: “NEITI is  encouraged that the measures taken so far largely inspire hope and confidence. The measures are also consistent with the findings and recommendations of NEITI in its various Independent Audit Reports. These Reports were ignored in the past.
“As an agency set up by law to implement the global principles of Extractive Industries Transparency Initiative which Nigeria is a signatory, NEITI has a legitimate interest in the on-going sweeping reforms.
“We are therefore delighted that the much needed political will required to boldly implement the NEITI recommended reforms is now provided, available and accessible under the leadership of President Muhamadu Buhari.
“In this direction, NEITI applauds the recent appointment of Dr. Ibe Kachikwu, a renowned industry expert with the needed global exposure, competence and integrity as Group Managing Director of NNPC. The careful decision made to appoint Dr. Kachikwu is already evident in the on-going dismantling of the unwieldy structure of the NNPC that made it impossible in the past for the organization to respond to increasing public demands for reforms.
“It is our considered hope that new NNPC Group Managing Director and his new team will consider it a priority to carefully study the findings and recommendations outlined in NEITI independent Reports of the sector. This is with a view to implementing the pending remedial issues under a plan already developed by NEITI and the Inter Ministerial Task Team (IMTT).
“Among these recommendations  are the issue of inadequate metering  infrastructure for accurate measurement of crude, the onerous JV cash call regime, inefficient cost determination, urgent resolution and review  of pricing issues related to expired MoUs and legal agreements with oil companies that have huge revenue loss implications for the nation. Others are huge costs of fuel subsidy, crude oil swap and products exchange agreements, repair of the refineries,  oil theft,  review of existing fiscal regime in the industry, automation of record keeping, and the politics of acquisition and assignments of oil blocks  by discretion etc. NEITI is ready and willing to provide further details if required.”

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