Abimbola Akosile
5 November 2009
Lagos — A budget monitoring expert has called for extractive taxes reconciliation between States, Local Governments, Interventionist Agencies and communities in the Niger Delta; as a way to ensure rapid development in the region.
Also there was a call for civil society organisations (CSOs) to be allowed to observe in/out elements of any audit process without restriction.
The calls were made by the Executive Director of the Niger Delta Budget Monitoring Group (NDEBUMOG), Mr. George-Hill Anthony, in his presentation at Nigerian Extractive Industries Transparency Initiative (NEITI)'s 2005 Audit Road show and Town hall Meeting, which took place recently in Yenagoa.
The forum also sought to promote the tenets of the Bayelsa Extractive Industries Transparency Initiative (BEITI), spearheaded by Governor Timipre Sylva to ensure transparency in governance in the state.
Anthony spoke extensively on 'The Role of the Civil Society in Monitoring Extractive Industry Revenues at the State and Local Government Level', and proffered some solutions to identified lapses in the extractive industry in Nigeria.
To him, the target is synergic ventilation with EITI (International) Secretariat; emergence of civil society organisations as critical pillars; legislative accountability and benchmarking; reforms of Agencies; enhancing Local Content of EITI to the Niger Delta region; and community ownership of the process.
Speaking on the Audit and CSOs concerns, Anthony identified the isolation of stakeholders from physical and process audit; isolation from reconciliation aftershock capacity gaps; concerns about gas capturing.
He also spoke on the need to simplify audit information, and for States and Local Governments to domesticate the BEITI. Other challenges and concerns include legislative gaps, constitutional bottlenecks, synergic inter-logging, disaggregated information and capacity for the gas sector.
The NDEBUMOG coordinator proposed amendments to the NEITI Act.
Sections of proposed amendment include: Section 3 (b)-'evaluate without prejudice to any relevant contractual obligations and sovereign obligations the practices of all extractive industries companies and government respectively regarding acquisition of acreage, budgeting, contracting, materials procurement and production cost profile in order to ensure due process, transparency and accountability'.
Section 3 (d): 'obtain, as maybe deemed necessary, from any extractive industry company an accurate record of the cost of production and volume of sale of oil, gas or other minerals extracted by the company at any period, provided that, such information shall not be used in any manner prejudicial to the contractual obligation or propriety interests of extractive industry company'
The proposed amendment on Section 5 (1)- on powers of Mr. President to appoint NSWG members, which Anthony said is still yet controversial; and Section 13 - which enables NEITI to receive grants and gifts without expressly (stating forbidden entities).
NEITI must accept CSOs Step-2-Step monitoring of post audit reconciliation; the communication strategy needs revamping with more Local Content. Also, availability of budget information of States/LGs is critical for reconciliation of expenditure, income and revenue, Anthony stressed.
NEITI was launched by President Olusegun Obasanjo in February 2004, which builds on existing government transparency efforts.
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