FEC Approves N463.6m For Oil, Gas Audit

The Federal Executive Council (FEC) has approved N463.6 million for the auditing of all government institutions in the Oil and Gas as well as Solid Minerals sectors of the economy from 2009 to 2011 and 2009 to 2010, respectively.

The Minister of Information, Mr. Labaran Maku, stated this while briefing State House Correspondents on the outcome of the weekly FEC meeting which was presided over by President Goodluck Jonathan in Abuja on Wednesday.

He said that the approval followed a memorandum submitted to the council by the Nigeria Extractive Industries Transparency Initiative (NEITI) seeking the Council’s approval to carry out the exercise.

“So, NEITI today brought a memo and sought to get council’s approval to audit the accounts of our Oil and Gas industry between 2009 and 2011.

“They will go into all operations in the Oil and Gas industry including the volume of production. Also they will look into the issue of revenue, they will also look into the issues of procedures in terms of the management of accruals into the federation account from our Oil and Gas industry as well as from Solid Minerals within this period.”

He said that the audit would be carried out in all major revenue generating entities and all revenue remitting government institutions in the two sectors.

Maku maintained that the audit, if carried out, would provide relevant information and data for the Government’s anti corruption agenda.

He further disclosed that the Council granted approval for the engagement of consultants to carry out the auditing of the Oil and Gas and Solid Minerals industry.

“The appointment of consultants to audit will establish processes and procedures, physical volumes and financial flows from the sectors, improve revenue remittances into the Federal Government account and enthrone competition and corporate governance.”

Maku stated that the consultants would determine Nigeria’s hydrocarbon and solid mineral values as well as access the volumetric aspects of production, export, import, unaccounted oil and gas and solid minerals and other relevant streams.

He, however, maintained that activities and entities involved in the petrochemical industry or processing of crude oil and gas would not be within the scope of work of the consultants, but such activities were required to confirm their relevant stocks, receipts and inputs to the sectors.

He said that the Council also reviewed the just concluded nationwide strike and protests by organised labour and civil society organisations and commended Nigerians for their understanding and show of brotherliness.

Maku, particularly, cited the spirit of oneness and solidarity exhibited between the Muslims and Christians during industrial dispute and urged leaders of the two religious groups to emulate this spirit by preaching the virtues of unity and oneness among all Nigerians.