Two Indigenous Firms To Audit Extractive Industries

THE Nigeria Extractive Industries Transparency Initiative (NEITI) has picked two indigenous firms to audit the entire extractive industries in the country.

NEITI Director of Communication, Ogbonnaya Oji, said in Abuja yesterday, via a press statement, that the two independent auditing firms are expected to conduct oil and gas industry audit from 2009 to 2011 and solid minerals audit from 2009 to 2010.

The oil and gas industry audit is to be conducted by Sada Idris & Co. for the sum of N226.6 million while Haruna Yahaya & Co. is to conduct the nation’s first solid minerals sector audit at the cost of N137 million.

The industry audits in the extractive sector are NEITI’s major functions under the NEITI Act of 2007.

Oji stressed that the exercise is expected to enthrone transparency and accountability in the management of Nigeria’s oil, gas and mining revenues, especially at a time when issues of corporate governance and accountability in the sector have become a matter of national concern.

NEITI’s process of selecting the auditors followed an international competitive bid, which included public advertisement in both local and international media.

During the bidding exercise for oil and gas, a total of 22 companies expressed interest, out of which eight companies met the requirements of both NEITI Act and Public Procurement Act in relation to the job and were offered the bid documents to submit Technical and Financial Proposals. The companies bid with technical partners with expertise in various sections of the industries. The same procurement procedure was strictly followed in selecting the consultant for the solid minerals industry audit.

The opening of EOIs, Technical and Financial bids were observed by a large pool of media and civil society organisations, as well as representative of the bidding firms.

The Technical and Financial Evaluations were carried out by a 7-man committee under a rigorous quality and cost-based procurement selection method.

In the exercise, the two companies emerged as preferred bidders and were accordingly recommended to the Bureau of Public Procurement (BPP) for vetting and issuance of Due Process Certificates of “No Objection” leading to Federal Executive Council (FEC) approval.

The projects were accordingly approved by the FEC on Wednesday January 17, 2012 for award of contract.

The emergence of Sada Idris & Co to carry out the oil and gas sector audit, and Haruna Yahaya & Co to carry out the solid minerals audit were considered by NEITI as a positive statement on the ability and capability of Nigerian firms to compete favorably with international companies in addressing our national challenges if given a level playing ground.

The engagement of the auditors to carry out oil and gas audit from 2009-2011 will bring NEITI up-to-date in compliance with the rules of global Extractive Industries Transparency Initiative (EITI) and NEITI national mandate.

Similarly, the conduct of solid minerals sector audit, after a successful study of the sector by NEITI, is a milestone that will open up the sector for Foreign Direct Investment (FDI), corporate governance and eliminate unwholesome activities, which currently dominate the sector under informal operations.

The two projects are expected to be completed on or before the end of the year to set the stage for availability of current and valid information and data, which investors and legislators require for planning and enable civil society and the media hold government and companies accountable.