By Omoh Gabriel, Business Editor
LAGOSâ€”THE quest for good corporate governance in Nigeria suffered a set back, yesterday, as the Nigeria Extractive Industries Transparency Initiative, NEITI, released its Report on 2005 Audits of the extractive industries in the country which indicted the Nigerian National Petroleum Corporation, NNPC, Central Bank of Nigeria, CBN, and the Niger Delta Development Commission, NDDC.
The CBN is spear-heading corporate governance, while the NDDC was blamed over its handling of revenue from oil companies and loyalties paid to the nationâ€™s treasury.
NEITI also disclosed that the volume of the nationâ€™s oil production was still largely unknown.
According to Economic Confidential, an online magazine, the report states that â€œCBN did not record some Petroleum Profit Tax, PPT, payments by oil companies, amounting to $241 million net difference while there are discrepancies in the revenues that oil companies paid to the NDDC and the one declared by the commission itself.â€
The report said â€œThe Executive Secretary of NEITI, Haruna Yunusa Saâ€™eed, explained that his agency was still facilitating remediation efforts aimed at getting to the root of the outstanding N654 billion unremitted revenue by Nigerian National Petroleum Corporation, NNPC.
Under-calculation of royalties
â€œIn the case of NNPC, there are issues regarding withholding revenue/payments for lifting being a buyer of Nigeriaâ€™s crude oil. They were expected to pay fully for what they lifted. That payment was short and at the last count, it was N654 billion based on the 2005 audit. There was also the issue of accounting systems, funds not well accounted for.
â€œWe have talked about $243 million in the areas of under-calculations in terms of royalties; about $340 billion in terms of petroleum profit tax underpayment based on the use of wrong price to determine such liabilities.
There are equally issues that we are working with both FIRS and DPR to determine the net amounts payable by these companies. Although we are yet to recover anything from NNPC in terms of money, considering the claim by NNPC that part of the money was deployed as subsidy for petroleum products, but efforts are still on to make such recovery almost seamless.â€
On NDDC, Mr. Saâ€™eed said the Commission declared that it received $135 million and N8.4 billion from oil companies in 2005, yet this was $14 million (N195 million) higher than $120 million (N8.16 billion), which the companies claimed to have paid.
Higher receipts by the CBN
The report also revealed that the CBN recorded higher receipts than the ones made by Nigeria Agip Oil Company, NAOC, Phillips and Continental while it did not report the Additional Bonus reserves by the NAOC. Also the PPT payment for the year by five oil companies namely, Brass Exploration, Pan Ocean, Phillips, Conoil and Continental could not be located on CBN template.
The report added: â€œThe CBN recorded higher receipts than the ones made by Amni, Elf, and NAOC, while it recorded higher net receipts than the ones made by Conoil, Moni Pulo, Panocean, Shell Petroleum Development Company, SPDC, Philips and Elf.â€
The Nigeria Extractive Industries Transparency Initiative, NEITI, is mandated by law to promote transparency and accountability in the management of Nigeriaâ€™s oil, gas and mining revenues. A major component of the on-going anti-corruption reform in the country, NEITI is the national version of the Extractive Industries Transparency Initiative, EITI, which is a global movement aimed at ensuring that extractive resources aid sustainable development.