US$11.6bn NLNG Dividend Yet To Be Remitted – NEITI

Mrs Zainab Ahmed, Executive Secretary of NEITI

Nigeria Liquefied Natural Gas (NLNG) dividends totaling US$11.6 billion (N2.1trillion) is yet to be remitted to the federation account, Executive Secretary of NEITI Mrs Zainab Shamsuna Ahmed has said. The Nigeria Extractive Industries Transparency Initiative chief disclosed this recently during a sensitization visit towards implementation of NEITI’s audit reports to Kaduna state Governor Nasir el-Rufai. She said data from NEITI audit reports showed  that Nigeria lost about 160 million barrels of crude oil valued at US$13.7 billion (N2.5 trillion) to crude oil theft from 2009-2012.

Daily Trust report continues:

The records she said were obtained from three international oil companies; Shell Production and Development Company, Nigerian Agip Oil Company and Chevron Nigeria Limited.

“Between 2009-2012, Nigeria lost about US$1.1billion (N201 billion) to crude oil and product swap, while from the NEITI 2012 Report, Nigeria spent over US$7 billion on Joint Venture Cash Calls with international oil companies,” she said.

Mrs Ahmed said NEITI’s position was that the federal government should divest its shares in the joint ventures, incorporate the joint ventures and/or transit them to other types of operating arrangements like the production sharing contracts.

NEITI audit reports of the oil and gas sector covering years 1999-2012, the Fiscal Allocation and Statutory Disbursement Audit findings and recommendations covering years 2007-2011 and the Solid Minerals sector Audit that spanned years 2007-2012 contain information that further informs the need for urgent and speedy reforms of the extractive sector in Nigeria.

Responding, el-Rufa’i pledged his support and commitment to the EITI process in Nigeria as a global response to fight resource curse.

“NEITI has remained one of the few institutions of government set up for reforms that is still working because the organization by its unique composition was designed to succeed. We will study the reports and work with NEITI to reform our oil, gas and mining sectors,” he said.