NEITI to provide baseline information on 13% derivation payments, petrol consumption data

The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced plans to provide baseline information on 13 per cent derivation payments and petrol consumption data in Nigeria.

The derivation payment is a certain amount of money in the oil and gas revenue data paid to oil-producing states, which has been extended to states that produce solid minerals in Nigeria.

According to the Head of NEITI, Ogbonnaya Orji, during the  organisation’s civil society consultative forum meeting with the media and civil society, providing this baseline information is essential in ensuring good governance and promoting transparency in Nigeria’s extractive industry.

He added that NEITI will be working with relevant government agencies and civil society organisations to collect and analyse the data.

Orji said the report will provide critical data required to monitor how much is allocated monthly to oil-producing states, while establishing whether the government is paying the dues.

He said: “We are commissioning another report on the actual Premium Motor Spirit (PMS) consumption in Nigeria.”

Orjj further stressed that NEITI is conducting an independent report to establish the quantity of fuel Nigerians consume and the cost, noting that the baseline information would be needed to manage the sector as subsidy is removed.

“Both the removal of subsidy and all measures taken are to improve revenue to enable the government tackle the challenges facing citizens; hence, we must see that our report supports this endeavour,” he said.