NEITI: subsidy removal will free economy

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NEITI: subsidy removal will free economy

Fuel subsidy

The Nigerian Extractive Industries Transparency (NEITI) yesterday insisted that the removal of Premium Motor Spirit (PMS) subsidy will free the economy from bondage.

Executive Secretary, Dr. Orji Ogbonnaya Orji, spoke at the first National Extractives (NED) in Abuja.

He said on June 29, NEITI will release a researched Advisory on the cost of fuel subsidy to Nigeria.

The publication, he said, “will outline facts and figures to reinforce NEITI’s that reinforce our position that removal of fuel subsidy will free our economy from bondage, benefit the majority poor and possible may hot the few affluent rich currently involved in the Subsidy transactions.”

It will also unveil its 2021 oil and gas and solid minerals industry reports in November 2022.

NEITI has also planned the allocation and statutory disbursement that tracks revenues generation and utilisation with facts on managing and internally generated revenues.

He said the agency has its data and information gathering process through the NEITI Audit Management System project recently and launched by its board- the National Group.

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Orji said the EITI 2019 Standard requires implementing countries, including Nigeria to disclose any contract(s) and licenses that are granted, entered, or amended that sets out the terms and conditions for the exploration and exploitation of oil, gas, or minerals from January 2021.

The Executive Secretary said the Petroleum Industry Act (PIA) 2021 also mandates the Nigeria Upstream Petroleum Regulatory (NUPRC) to publish the texts of any new license, lease or contract, or amendment immediately following the or signing of such texts. 8. Similarly,

In June 2021, he said, Nigeria was the Chair of the EITI global on Contract Transparency.

“The network which I chair is tasked with the development of a framework for contract disclosures.

“The network has 20 EITI implementing countries, including Nigeria as members.

“I am pleased to report that NEITI is currently coordinating the to on these important and ensure that the of the PIA regarding contract disclosures are activated.

“Specifically, an - committee on contract transparency in the extractive sector has been set up and NEITI is serving as its Secretariat.

“The committee has produced a draft implementation roadmap and work plan.

“Similarly, NEITI is serving on the Presidential Petroleum Industry Act Implementation Steering Committee.”

Orji noted that transparency and information sharing among stakeholders is the first step and necessary entry point to an equitable sharing of resource benefits.

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