Fuel subsidy removal will free Nigeria from economic bondage – NEITI

Nigeria’s Extractive Industries and Transparency Initiative (NEITI) has stated that the removal of fuel subsidy will free Nigeria from economic bondage and also be of advantage to the poor majority.

This was disclosed by Dr. Orji Ogbonnaya Orji, the Executive Secretary, NEITI, at the stakeholders’ National Extractive Dialogue (NED) 2022 on Tuesday in Abuja.

NEITI added that it is working on an inter-agencies committee on contract transparency in the extractive sector.

The NEITI boss said the agency is working on a research policy advisory on the cost of fuel subsidy to the country, and that the publication would outline facts and figures to reinforce NEITI’s position on the subsidy removal.

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Orji said, “The removal of fuel subsidy would free the country’s economy from bondage, benefit the poor majority and possibly hurt the few affluent who were currently rich in the subsidy transactions,” adding that dialogue was important because the Extractive Industry Transparency Initiative (EITI) 2019 required implementing countries, including Nigeria to disclose any transaction including licensing that were granted and amended.

“It will also require disclosing the terms and conditions for the exploration and exploitation of oil, gas, or minerals from January 2021,” the executive secretary said.

On the Petroleum Industry Act (PIA) 2021, he said that it orders the Nigeria Upstream Petroleum Regulatory Commission (NUPRC) to publish the texts of any new license, lease or contract, or amendment immediately following the granting or signing of such texts.

“In June 2021, Nigeria was appointed the Chair of the EITI global network on contract transparency. The network which I chair is tasked with the development of a framework for contract disclosures.

“The network has 20 EITI implementing countries, including Nigeria as members. I am pleased to report that NEITI is currently coordinating the efforts to deliver on these important tasks and ensure that the provisions of PIA regarding contract disclosures are activated.

“Specifically, an inter-agencies committee on contract transparency in the extractive sector has been set up and NEITI is serving as its secretariat. The overall goal is to enable governments, companies, civil society and communities to evaluate the energy industry.

“These are aimed at proffering evidence-based policy recommendations for the efficient management of natural resource benefits and the transition from fossil fuel to a renewable energy regime with these countries as case studies,’’ he added.