OrderPaperToday – Stakeholders and experts have called on the three tiers of government in Nigeria to put a wedge to the existing leakages in their revenue coffers.

They also urged the local, state, and federal governments to develop an improved revenue administration structure as a remedy to effectively increase the internally generated revenues.

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Comprising of Civil Society Organisations (CSOs), the stakeholders bemoaned the lack of accountability and transparency in the nation’s oil sector.

They spoke at a Development Dialogue by the Growth Initiative For Transparency (GIFT) Project on Wednesday in Abuja. A Project implemented by OrderPaper Advocacy Initiative (OAI) in partnership with a cluster of Civil Society Organisations focused on mobilising citizens’ interest in the Petroleum Extractive Industry.

READ ALSO: GIFT Initiative: CSOs seek transparency and accountability in extractive sector

The experts argued that adoption of the best global practices in revenue generation and remittances hinges on the elimination of corruption and bringing to bear, the challenges for effective development as can be found in advanced climes.

According to a keynote address by Professor Ken Ike, the Fiscal Responsibility Commission (FRC) has a mandate to ensure that revenue-raising policies, resource allocation decisions, and debt management decisions are undertaken in a prudent, transparent and timely fashion as provided for in the law.

He however expressed frustration at the commission’s inability to scrutinise agencies of government, while harping on the need for a quick passage of the Fiscal Responsibility Act (FRA) in order to curb revenue leakages in the country’s extractive industry.

READ ALSO: GIFT Initiative: CSOs seek prevention of corruption, speedy passage of FRA Amendment Bill

Prof. Ike also mentioned that the recently passed Petroleum Industry Act (PIA) has brought setbacks in the fight for greater transparency and accountability in public finance management.

“The Fiscal discipline, the level of transparency, accountability, and prudence provided by FRA 2007, and all other relevant fiscal laws and fiscal governance indices have all been ousted by the PIA 2021.

In that respect, PIA 2021 has set us back in the fight for greater transparency and accountability in public finance management.

READ ALSO: GIFT Dialogue: Rep Oluwole Oke identifies dialogue, awareness as keys to driving economic stimulus 

There is no doubt that PIA has brought with it, a new Special Purpose Vehicle (SPV) – the Nigeria National Petroleum Commission (NNPC) Limited – under the Companies Allied Matters Act (CAMA), Corporate Affairs Commission (CAC), to improve its ability to borrow, allocate resources more efficiently and achieve operational and managerial effectiveness.

Although it has brought better Host and Affected community relations, it is yet to guarantee peace and development in the Niger Delta region, where disruption, vandalisation, and theft of crude are the order of the day on ‘on-shore’ deposits.

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The ensuing low level of crude production and theft of crude has kept Nigeria production far below our Organisation of Petroleum Exporting Countries (OPEC) quota.

The PMS subsidy has reached a critical juncture where the Government is now looking to borrow N4 trillion per year for the PMS subsidy alone, while 50 modular refineries can be funded by N2 trillion only) to refine 1 million barrels a day.   

It seems reasonable to carry out a valuation of the crude, gas, landed, and intangible assets of NNPC Ltd and quote it in the stock market, ensuring all and sundry, host communities, labour, oil, gas and oil marketers, citizens and corporates partake in the public quotation.  

Through this public limited company, the citizens, the corporate community and the public shareholders can demand accountability and transparency in the corporate governance of NNPC Ltd,” Ike concluded. 

GIFT Development Dialogue is held under the auspices of the GIFT Nigeria Project – Growth Initiatives for Fiscal Transparency – being implemented by OrderPaper Advocacy Initiative (OAI) and its cluster partners: Centre for Transparency Advocacy (CTA), HipCity Innovation Centre, CLICE Foundation, and Nigeria Institute of Quantity Surveyors (NIQS).

The initiative also has the support of the United States Agency for International Development (USAID) under the Strengthening Civic Advocacy and Local Engagement (SCALE) Project.



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