THE Nigerian Extractive International Transparency Initiative, (NEITI) said today there is appreciable progress in the engagement with oil companies with respect to outstanding royalties of over $2.674 billion the companies owe the Federal government.
The Executive Director of NEITI, Orji Ogbonnaya Orji, said today on the sidelines of the Stakehokders Engagement Forum on the Petroleum Industry Act (PIA) that such engagements would grow investment confidence in Nigeria’s oil and gas sector.
According to NEITI, the outstanding sum represented taxes and fees.
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Orji said the engagements, designed to shore up revenues for the country, were bearing fruits.
He said, “On Monday, I’ll be with the Lagos Chamber of Commerce and Industry to explain to them NEITI’s role in establishing a transparent oil and gas sector with the transitioning of the PIA.
“We assured the companies that they’re key stakeholders in growing investors’ confidence in the sector.”
He noted that the PIA had given Nigeria a wider role in ensuring transparency in the oil and gas business.
He added that NEITI’s reports had helped in the recovery and tracking of revenue leakages for the government.
He also noted that NEITI regarded the companies as key stakeholders and would continue to engage them for tax and royalty compliance.
Adekunle said the agency would continue to work on delivering the benefits of Nigeria’s transition to a new era of PIA.
“We have resolved to deliver our obligations with the twin components of accountability and transparency, targeting Foreign Direct Investment through resource mobilisation,” he said.
The PIA, which was signed into law on August 16, 2021, seeks to provide legal, governance, regulatory and fiscal framework for the Nigerian petroleum industry.
It further seeks to facilitate Nigeria’s economic development by attracting and creating investment opportunities for local and international investors.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.