One of the key statutory functions of NEITI is conduct of regular audits of the extractive sector. The Audit is necessary because information about revenue flows in the extractive sector has remained a secret in Nigeria. This created mistrust, mutual suspicion, hostility and conflict. Majority of Nigerians do not know how much money companies pay to government in the form of royalty, profit tax, bonuses etc. Nigerians also do not know how much the government receives and how the revenue has supported provision of social amenities, to make their lives better.

NEITI audit is therefore a thorough examination, process or assessment of audited accounts and activities of all stakeholders in the extractive sector toward the efficient/effective revenue flow management of the industry. NEITI audit is not an exercise to witch-hunt any person or organization but designed to maximize the benefits accruing to the people of Nigeria from the natural resources in their land.

NEITI also has the mandate to conduct Fiscal Allocation and Statutory Disbursement (FASD). The Audit is to cover fiscal allocation and statutory disbursements of extractive industries revenue funds from the Federation account to the three tiers of government. The audit is expected to cover actual disbursement of funds accruing to the Federation Account from the oil and gas sector to beneficiaries such as federal, state and local governments, and other relevant agencies, as well as tracking actual application of these funds.

The scope of the Audit will for now cover only states that benefit from the 13% derivation as well as other agencies that directly receive allocations from the federation account such as:

  • Niger Delta Development Commission (NDDC)
  • Petroleum Technology Development Fund (PTDF)
  • Central Bank Of Nigeria - CBN (Development of Natural Resources)
  • Federal Government of Nigeria -FGN (Share of Derivation and Ecology)
  • Administration and application of Excess Crude Oil Accounts
  • 13% Derivation Allocation to States and Local Government Councils
  • Ecological funds.

NEITI commenced the first cycle of this audit in 2012 and the report is expected end of 2013. Overall, the audit exercise is intended to strengthen the weakened structure of management of the revenues from abundant natural resources generated from the nation and ensure that those saddled with the responsibility of managing these resources on behalf of the people do so with utmost transparency and accountability at all times.

 

 

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Where to find us?

Address
4th Floor, Murjanatu House,
1, Zambezi Crescent, Off Aguiyi Ironsi Street, Maitama, Abuja.
Phone Number
+234 9 2905984
+234 9 2906623