By Etuka Sunday
The Nigeria Extractive Industries Transparency Initiative (NEITI) has commended companies and government agencies covered by its 2019 oil and gas industry audit exercise for improved compliance in their submission of the audit templates used for data gathering.
The Executive Secretary of NEITI, Waziri Adio, gave the commendation while releasing the report of the compliance assessment in Abuja.
“The data submission compliance rate for the 2019 oil and gas audit is very impressive,” said Mr. Adio. “It is remarkable not just because of the massive improvement across the board but also because this improved compliance happened with all the restrictions imposed by COVID19. This underscores the strong commitment of the affected companies and the government agencies. We commend them and urge them to keep it up.”
The assessment examined the level of compliance by entities to the data gathering component of the audit process with focus on two indicators: template timeliness and template completeness.
While timeliness looked at submission of templates within the agreed deadline, completeness focused on submission of all templates applicable to each entity.
Highlights of the compliance report showed that forty-nine entities, representing 68% of the 72 entities covered, attained the maximum score of 100%.
The compliance report stated that “one entity scored 95% while another scored 93%. Four entities scored 88%, while two entities scored 75%, and two entities also scored 50%. One entity each scored 81%, 72%, 70%, 68%, 67%, 63%, 59%, 40%, 20% and 18%. Finally, three scored 0%.”
Further analysis showed that out of the 72 entities covered by the exercise, 58 or 81% of the entities assessed scored between 75% and above, while 66 or 92% of the entities scored between 50% and above.
The exercise evaluated participating companies and government agencies on a scale of 0% to 100% using the two indicators mentioned above. While 0% shows total non-compliance with the data collection process for the audit, 100% indicates total compliance with the data collection process.
NEITI’s first compliance exercise focusing on the 2015 oil and gas industry audit cycle was published in August 2017. A comparative analysis of the assessment scores for the 2015 and 2019 oil and gas data submission exercise showed improved compliance among covered entities.
“In 2019, 49 entities (out of 72) scored 100% in the compliance score, while 14 entities (out of 65) scored 100% in 2015. Thus, 68% of the covered entities fully complied in 2019, while 21.54% fully complied in 2015,”the report stated.
“With 68% of entities fully compliant in 2019, as opposed to 21.54% of entities in 2015, full compliance improved by over 200% between 2015 and 2019,” NEITI’s report further stated.
Further breakdown shows that nine (9) entities retained their 2015 compliance scores of 100% in 2019, while three (3) entities moved from 0% in 2015 to 100% in 2019.
The report also revealed that fourteen (14) entities recorded a drop in their compliance scores. The biggest drop was from 88% in 2015 to 0% in 2019.
NEITI’s plan to release the 2019 report this year is on course, as the data gathering, data validation and reconciliation stages of the exercise have been concluded.