…Targets revenue recovery, extractive industry transparency

The Senate Thursday through its Committee on Public Accounts, embarked on far-reaching oversight exercises on Nigeria’s oil and gas industry by inviting the Nigerian National Petroleum Company Limited (NNPCL), the Central Bank of Nigeria (CBN) and major international and indigenous oil companies.

The summon is aimed at grilling the agencies to defend issues arising from the Nigeria Extractive Industries Transparency Initiative (NEITI) Oil and Gas Industry Audit Reports covering 2021, 2022 and 2023.

Over 60 key government institutions were also invited for the 2-day audit reports scrutiny which begins on Monday next week.

The exercise, as stated in a statement signed by the Chairman of the Committee, Senator Ibrahim Hassan Dankwabo (Gombe North) is aimed at scrutinising revenues, remittances, financial obligations and operational activities across the nation’s extractive sector in a bid to strengthen transparency, accountability and prudent management of public resources.

The committee in the statement explained that the special legislative oversight and public hearing derives its authority from Sections 88, 89 and 85(5) of the 1999 Constitution (as amended), as well as Order 95(5)(d) of the Senate Standing Orders, 2026.

According to the committee, the NEITI audit reports, submitted to the National Assembly in accordance with the NEITI Act, contain extensive information on the operations of stakeholders in Nigeria’s oil and gas industry, including revenues, payments, remittances and other financial obligations.

It stated further that the hearings would evaluate the level of compliance by Ministries, Departments and Agencies (MDAs), government-owned enterprises, regulatory bodies and oil and gas operators with constitutional provisions, the NEITI Act, Fiscal Responsibility Act, Financial Regulations and other applicable laws governing the extractive sector.

It added that the committee would also interrogate issues identified in the audit reports with a view to promoting greater revenue assurance, transparency and accountability in the management of Nigeria’s vast petroleum resources.

The hearings, scheduled to commence on August 3 at the National Assembly Complex in Abuja, will begin with appearances by NEITI, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Central Bank of Nigeria and the Niger Delta Development Commission (NDDC), signalling the Senate’s intention to first examine the regulatory and financial architecture underpinning the industry before engaging operators.

On August 4, the Office of the National Security Adviser, Nigerian Investment Promotion Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Revenue Mobilisation Allocation and Fiscal Commission are expected before the committee.

The following day, attention will shift to the Nigerian National Petroleum Company Limited, the Joint Development Authority and the Ministry of National Planning, while the Nigeria Revenue Service, Office of the Accountant-General of the Federation, Office of the Auditor-General for the Federation and the Ministry of Petroleum Resources have been scheduled to appear on August 6.

The committee has also lined up appearances by the Surveyor-General of the Federation, the Federation Account Allocation Committee (FAAC) and the Federal Ministry of Finance on August 10 before moving to a series of hearings involving major indigenous and multinational oil companies.

Among the oil firms billed to appear are Seplat Energy, Aradel Energy, Famfa Oil, TotalEnergies EP Nigeria, Oando, Chevron Nigeria, CNOOC Exploration and Production Nigeria Limited, Conoil Producing, Mobil Producing Nigeria Unlimited, Esso Exploration and Production, Shell Nigeria Exploration and Production Company, Aiteo Eastern E&P, Midwestern Oil and Gas, Pan Ocean, ND Western, Platform Petroleum, Neconde Energy and several other operators.

The committee directed all organisations to be represented by their chief accounting officers alongside relevant technical personnel familiar with the issues contained in the audit reports.

It stressed that all invited organisations must come with documents relevant to the matters under investigation and warned that requests for postponement or rescheduling would only be entertained under exceptional circumstances with prior approval of the committee.