Ifeanyi IbeThe Nigeria Extractive Industries Transparency Initiative (NEITI) has stated that it is conducting a study to determine the accurate consumption figure of fuel in the country because it does not believe in the figures being peddled by government agencies.
The organisation, through its Executive Secretary, Ogbonnaya Orji, made this known on Tuesday in Abuja during the ‘Stakeholders Validation Workshop on the 2022 Annual Progress Report For Nigeria’s Extractive Industries.’
Orji also urged the federal government to implement the fuel subsidy removal fully.
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He said, “For a very long time, my disposition has been for the removal of subsidy. And this government, right from day one has taken that bold step. There shouldn’t be any going back.
“We should move forward from there and then put in place a robust arrangement that will show a clear departure from the way and manner we have operated under subsidy. Nigerians want to see what will change when the subsidy is no more.
“And we have highlighted this because we know that subsidies put a lot of impediments on transparency and accountability in the management of revenues from the oil and gas industry over the years.”
He also said NEITI knows that subsidy removal will throw up a lot of other issues, adding that “one of those issues that we know will happen is the actual consumption figure of fuel.”
According to him, “We believe that the figures that are being thrown up as daily consumption of PMS in Nigeria are not very correct. We think we need to have an empirical figure and that is why NEITI is commissioning a study on the actual PMS consumption in Nigeria.
“We have every reason to believe that the figure may be less than what is being projected and the removal of subsidy has also removed all the incentives for hiking this figure in a manner that lacks empirical and logical reason.
“So the removal of subsidy will remove a lot of opacity and suspicion in budgeting based on estimates. That is why subsidy removal is a very fundamental policy shift that needs to be sustained.”
Orji, however, noted that the government should put somethings in place to cushion the immediate effects the removal of subsidy has already brought on the vulnerable, less privileged poor, who are found in both the working and non-working class.
“We just need the impact of this subsidy removal to reflect in the improvement of the general well-being of Nigerians and in our social infrastructure,” he said.
Speaking further on saving, Orji said “We had suggested that subsidy should be removed. Now it has been removed. We are now pleading and requesting that a robust arrangement be put in place to show Nigerians the impact of subsidy removal in terms of roads built, infrastructure, access to health, education, etc.
“The savings from this subsidy should be visibly impactful in the lives of Nigerians, and that is where all of us must take responsibility. NEITI has a responsibility working with the media in this direction.”
Speaking on the validation workshop, Orji explained that the global Extractive Industries Transparency Initiative requirement 7.4 under its 2019 standard (now requirement 1.5 under its 2023 standard) mandates all implementing countries, including Nigeria, to document their review of impacts and outcomes of the EITI implementation.
He said the documentation is being done in an annual progress report or through other means as may be agreed by the Multi-Stakeholders Group.
“The global body also requires that all stakeholders- companies, government and civil society- involved in the EITI process, including those not on the MSG, should be able to participate in reviewing the impact of EITI implementation, provide feedback, and have their views reflected in the annual progress report.
“Therefore, this programme has been designed to consult with you, seek your inputs and have your views reflected in the 2022 the Annual Progress Report of the Nigeria extractive industries in line with the requirements of the global EITI,” Orji said.
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