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FEC Earmarks N 363 million for Mineral Resources Audit

By on January 19, 2012

The Federal Executive Council (FEC) during its meeting yesterday earmarked N 363.6 million to be provided to two independent auditing firms for the audit of the oil and gas and solid mineral resources sectors of the economy.

Briefing media representatives at the Presidential Villa yesterday, Mr. Labaran Maku disclosed that the scope of the audit would encompass the period of 2009 to 2011 (for the oil and gas sector) and 2009 to 2010 (for the solid minerals sector).

The contract was awarded as follows:

  1. N 226, 613, 000 awarded to Messrs Sada Idris & Co for the oil and gas audit
  2. N 137, 000, 000 awarded to Haruna Yahaya & Co for the solid minerals resources audit

The Minister said, “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.”

The Minister further said the audit report, would “also provide relevant information and data for the government’s anti-corruption agenda. It is central to Nigeria’s compliance to the global NEITI to which the country is a signatory.”

Mr. Maku further added, “The audits will be carried out in all major revenue generating entities and all revenue remitting government institutions in the oil and gas and solid minerals sectors of the country from 2009 to 2011 and 2009 and 2010 respectively.

“The consultants are to carry out Nigeria’s hydrocarbon and solid minerals values. They shall access the volumetric aspects of production, exports, imports, unaccounted oil and gas and solid minerals and other relevant streams.
Activities and entities involved in the petrochemical industry or processing of crude oil and gas are not within the scope of work but such activities are required to confirm their relevant stocks, receipts and inputs to the sectors.”

The duration of the audit is to last nine months.