By Oscarline Onwuemenyi
ABUJA – The World Bank has said it is backing the bid by the Nigeria Extractive Industries Transparency Initiative, NEITI, to achieve compliance by the global Extractive Industries Transparency Initiative, EITI.

This is to achieve greater transparency in the nation’s oil and gas, and minerals industries.

The Programme Manager for EITI at the World Bank’s headquarters in Washington, Mr.  Anwar Ravat, who announced the support along with a $4 million grant to the expanded NEITI Secretariat, during a visit in Abuja, noted that Nigeria’s validation status was of paramount interest to the global financial institution.

He said, “The World Bank has observed keenly the efforts by NEITI to expand its capacity and capability towards enhancing transparency in revenue flows from the exploitation of natural resources in the country, and that is what we are interested in supporting it.

“We and other development partners are encouraged by the country’s efforts towards making the process of minerals exploitation very open and transparent, because we believe that is the root of progress and development and avoidance of conflict.”

Ravat added that, “Attaining the validation status required by EITI will go a long way to show the world how committed and responsible NEITI is as an organisation. The requirements of the validation process are very rigorous and we believe that the country is on its way to achieving that.”

He also said that the World Bank intends to support NEITI’s efforts by providing technical expertise towards ensuring success at next year’s meeting of the EITI Board.

Ravat added, “what we put high premium is the partnership that exists between Nigeria and the World Bank on the need to promote transparency in the extractive industry.”

According to him, “From the plans that the secretariat has, the World Bank remains optimistic that Nigeria will achieve EITI compliance because the country is on track and I hope that we as World Bank will continue to support the initiative and ensure it keeps going on.”

Future audits

Meanwhile, the NEITI scribe said the report of the on-going 2006-2008 audit would be presented in January, fulfilling one of the most important remedial steps for the attainment of compliance status by the organisation.

She added that, “NEITI is in the process of procuring auditors to carry out the 2009 Oil and Gas audits, and the first Solid Minerals audit covering 2007-2009. A small preliminary study of the solid minerals sector has been previously conducted by NEITI.”

According to her, some of the lapses which were exposed by previous audits (1999-2004 and 2005) by NEITI are currently being remedied by the relevant government agencies, adding that progress has been made in the implementation of several of the recommendations.

NEITI, becomes FAAC observer
Zainab also disclosed that the Federal Government has approved NEITI’s request to be admitted as an observer in the Federation Account Allocation Committee, FAAC, to enhance its ability to better monitor the monthly disbursement of funds to the three tiers of government.

The Chairman of the NEITI Stakeholders Working Group, Prof. Assisi Asobie, had earlier spoken about plans by the agency to begin the comprehensive audit of the Federation account, with regard to the management of such funds and the impact on the lives of Nigerians.

Asobie also disclosed that between 1999 and 2005, more than N15.9 trillion was shared among the three tiers of government, adding that despite the excess wealth generated from the abundant mineral resources in the country, many Nigerians still wallow in abject poverty.

He stated that the Initiative would soon commence the audit of “money that goes into the Federation Account; we would like to know why monies from this account, which are allocated through the states and local government don’t reach the communities that need them most.”

Asobie disclosed that future audits would be done in conjunction with the Revenue Mobilisation Allocation and Fiscal Commission, RMAFC, since that is their primary responsibility. “We want to ensure that when these funds are allocated, does the receiving party expend it on priorities that lead to development. It is going to be a revolution, and we are determined to do this within the year,” he added.

According to the NEITI chief, “Clearly, there is no correlation between the proportion of revenue received from the Federation Account and the reduction of the level of poverty for the entire regions of the country.”