A multi-million-naira project for establishing a data centre by the Nigeria Extractive Industries Transparency Initiative (NEITI) has been shrouded in controversy even as questions are being raised over delayed completion despite its appropriation in two budget cycles.
This is even as the management of NEITI refutes allegations of misappropriation of funds, maintaining that the project has reached 90 per cent completion and will be commissioned in September.
The project, conceived by the agency’s board of directors (National Stakeholders Working Group), 2022 kicked off with the initial release of N141 million through the 2023 national budget, findings show.
The ICIR reports that NEITI is a Nigerian government agency affiliated with the Oslow, Norway, based Extractive Industries Transparency Initiative (EITI) founded in June 2003.
It came into existence in Nigeria in 2004 with the primary mandate of promoting transparency and accountability in the country’s extractive industries, including oil, gas and mining.
The agency, also referred to as the extractive industry’s watchdog, is also responsible for auditing extractive industry revenues, publishing reports on extractive industry activities, tracking revenues and benefits from extractive industries as well as providing data and information for informed decision making.
How data centre project was conceived
Findings reveal that the multi-million-naira data centre project was conceived and approved by the previous National Stakeholders Working Group (NSWG)), NEITI’s board, to serve as a springboard for compliance with the requirement of EITI Standard 2023.
Requirement seven of the EITI Standard 2023 document, harps on data accessibility and open data, requiring implementing countries to ensure that EITI disclosures are made publicly accessible.
It also mandates the multi-stakeholder group to agree on a clear open data policy on the access, release and re-use of EITI data while government agencies and companies are expected to publish the data under an open licence.
The ICIR gathered that a project concept for the centre was initially developed with the hope that NEITI could secure funding from the Word Bank for execution.
However, at the time NEITI applied, the world funding for extractive sector reforms had closed, hence a submission was made to the federal government for funding under the 2023 budget.
Concerned staff raise eyebrows, two years’ after
Not a few insider sources have raised eyebrows over the manner in which the project is being dragged, describing it as a conduit.
Findings by The ICIR indicate that the sum of N141,639,720 million was appropriated for it and released in the 2023 budget, even as the same project reappeared in NEITI’s 2024 budget with the sum of N81,400,229 million appropriated.
NEITI’s helmsman, Orji, who confirmed the the allocation by the federal government from the 2023 budget, however, said the funds appropriated for the centre in the 2024 budget were yet to be released.
Although he had indicated that work on the data centre commenced in 2023, and would be completed as at March 2024 – It was initially billed for completion/commissioning in March this year but Orji has now said this would be in September – insider sources are wondering why the project was foot dragging despite the release of funds appropriated in the 2023 and 2024 budgets.
A source who wouldn’t want to be named for fear of victimisation said, “This project started in 2023 but as we speak no data centre is yet in place. In fact, the centre project has become a conduit to divert public funds through annual budgets. I won’t be surprised if it reappears in next years budget…”
Another source revealed that other allocations have been made for the purchase of software and ICT equipment for the data centre.
“For instance, a sum of N80 million was appropriated for computer software acquisition- purchase and upgrade of ICT equipment and software-while another sum of N75 million was appropriated for purchase of computer printer/communication equipment.
“Similarly, another N90 million was appropriated for the purchase of computers, all in 2024,” said the source who sought identity protection.
Questionable contracts
Aside the data centre project, The ICIR gathered that allegations of misappropriation of funds and contract splitting are also raising concerns at the extractive industry’s watchdog.
On November 26, 2023, the sum of N5,340,000 was said to have been paid to a firm called Lvrobert Resources Limited for the training of NEITI’s board members (National Stakeholders Working Group).
But the training was claimed to have been held in November 2023, when the affected NSWG (NEITI’s board) was no longer in existence; having earlier been dissolved alongside other federal agencies on June 16, 2024.
Similarly, the management of NEITI was accused of expending huge amounts on producing large numbers of its audited financial statements.
On May 18, 2024 a firm called Ernest O. Agbede Chattered Accountants was paid the sum of N6,675,000 for the production of additional 500 copies of NEITI’s audited financial statement for 2022 & 2023.
Earlier on April 29, 2024, three chattered accounting firms were paid various sums of money for the production of NEITI’s audited financial statements.
According to the online open treasury data source, a firm named Tajudeen Badejo Chattered Accountants was paid the sum of N8,800,000 for the production of additional 500 copies of NEITI’s audited financial statements for 2012 to 2015.
On the same date, another firm, Olufemi Adeniji Chattered Accountants, was paid twice for the production of additional 500 copies (each) of NEITI’s audited financial statements for 2018 & 2019.
While the firm was paid N5,295,000 for the production of additional 500 copies of NEITI’s audited financial statement for 2018 & 2019 in one instance it also received N5,220,000 for the production of additional 500 copies for 2016 & 2017.
“What is NEITI doing with these large numbers of its audited financial statements it claims to be producing? Why is the contract for production of the statements being split among several firms? Why is NEITI using chattered accountants’ firms for the projects, are they printing firms?” a source queried.
NEITI boss responds to allegations
Justifying the data centre project in an exclusive interview with The ICIR, NEITI’s executive secretary, Orji, said it was conceived to serve as a one- stop shop for information and data reservoir on the extractive sector.
According to him, work on the centre was currently at 90 per cent completion stage and that the project would be commissioned in September this year.
“The centre is also to serve as warehouse for all information and data from NEITI industry reports from the first one published (1999-2004) till date and going forward in aggregated and disaggregated formats for easy access by multi-stakeholders.
“Also to benefit from it is the general public especially the civil society, extractive industry companies, government agencies and the legislature who have come to invest enormous trust on NEITI’s capability to provide timely, credible information and data for informed decision making, engagements and advocacy.”
Orji further explained that NEITI embarked on the project to align with Nigeria’s commitments to comply fully to the open data requirements as provided for in the EITI 2023 Standard.
Why centre appeared in 2023, 2024 budget cycles
On why the sum of N141 million was released for the project in the 2023 budget yet it reappeared in the 2024 budget he admitted that the federal government provided the amount for the 2023 budget.
“However, at this point NEITI was able to secure its permanent office building at Wuye and there was no other provision for ICT infrastructure to serve the entire building except for provisions under the data centre.
“To address this problem, the project was re-scoped to provide basic required up-to-date ICT infrastructure as prelude to the main data centre.
“These included; NEITI server room, the main data centre control, provision of CCTV cameras and allied devices, access control for the whole office building to ensure security and protection of the centre.
“I am pleased to report that all these preliminary and important perquisite activities were duly achieved and fully implemented under the 2023 capital budget,” he said.
Orji, who confirmed that the project has also been appropriated for in the 2024 budget, however, said: “It is worthy of note that under the 2024 budget no funds has been released by the federal government.
“We hope to launch the project, hopefully, in September when our newly constituted board (NSWG) would have settled down.”
On the capacity training for the dissolved NSWG members in September last year, he said it was an ICT training for recruited staff on the use of NEITI web applications.
“The NSWG narration is for accounting purposes because the recruitment exercise was a special NSWG project. The training was held at NEITI conference hall,” Orji said.
‘No contract splitting’
The executive secretary also denied alleged misappropriation of funds through contract splitting saying the various reports referenced were printed by the respective accounting/auditing firms for the particular period.
“During those periods of ten years, our records show that three different accounting firms were involved. We contacted each of them to provide us the number of copies. Note that accounting firms can only append their stamps on the jobs they have done.”
He said the large quantity of the documents were printed based on requests mostly from interested members of the public; especially various committees at the national assembly “who always demand for these and similar documents.”
Fidelis Mac-Leva is the Deputy Editor of The ICIR. He has previously worked with several media outfits in Nigeria, including DAILY TIMES and DAILY TRUST. A compellingly readable Features writer, his forte is Public Interest Journalism which enables him to "comfort the afflicted and afflict the comforted..." He can be reached via [email protected], @FidelisLeva on X