NEITI’s audit to cover excess crude account

Ademola Iginla
December 3, 2012 2:18 am

Brent-crude-oil-360x301A new audit to be conducted by the Nigerian Extractive Industry Transparency Initiative will cover the administration and application of excess crude oil accounts, 13 per cent derivation, allocation to states and local governments as well as ecological funds operations, NEITI has said.

A statement issued by Director of Communication at NEITI, Mr. Ogbonnaya Orji, in Abuja on Sunday, said the objective of the national audit was to establish how the funds were distributed and received by the three tiers of government.

The Federal Executive Council presided over by President Goodluck Jonathan had approved the audit at its last meeting on Wednesday.

It is also designed to provide baseline information and data to the three tiers of government on the basis of computation of who gets what, how and why.

The exercise will also explain if each of the three tiers gets from the funds their actual due.

Orji said the audit would also lay emphasis on the application and utilisation of the funds by the various beneficiaries at the federal, state and local governments.

He said, “The scope of the exercise audit will cover the 13 per cent derivation and relevant institutions that directly receive allocation from the federation account. It is expected to review policies and procedures on the disbursement and utilisation of extractive revenue funds by the three tiers of government.

“Major agencies to be covered by the audits include the Niger Delta Development Commission, the Petroleum Development Technology Fund, the Central Bank of Nigeria and the Federal Government’s share of derivation and ecological funds.

Culled from Punch

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