The Facility for Oil Sector Transformation (FOSTER) has urged the Federal Government to implement existing report and evolve new ones in the proper metering of the Oil and Gas sector as part of measures to stem the massive loss of revenue by the government in the sector.
Speaking Thursday at a Strategic Meeting on Advocacy for Improving Metering Infrastructure in the Oil and Gas Sector in Nigeria”, the Executive Director of the African Centre for Leadership, Strategy and Development (Centre LSD) Dr Otive Igbuzor said that effective hydrocarbon management is hinged on three key areas of fiscal regime, regulation and metering infrastructure, saying however that Nigeria is yet to get any of the three right.
According to Igbuzor the meeting was convened by FOSTER, Nigerian Extractive Industries Transparency Initiative (NEITI) and the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) to create a widespread understanding of the issues with the current metering infrastructure including amount of loss in value and revenue to the country.
Also to engage in advocacy messages that will resonate with citizens and lead to proper and adequate metering infrastructure in the oil and gas sector; and engage in advocacy campaign for proper and adequate metering infrastructure inn Nigeria.
“Past NEITI industry audit reports have consistently identify inadequate metering infrastructure as a major source of revenue loss to the country. Eight years after the study, the recommendations of the report have not been implemented and the country continues to lose huge amount of revenues daily,” he said.
A lecturer at the Petroleum and Gas Engineering Department of the Baze University Abuja, Dr Sunday Kanshio said the key finding of the 2009 NEITI report if implemented would have save the country from the huge loss running into billions of naira.
He therefore urged the Department of Petroleum Resources (DPR) to produce a comprehensive guideline for the upstream covering measurement of crude oil, condensate and gas.
“There should be separate guidelines for downstream measurement. Penalty should be heavy enough to discourage defaulting on the provision of the guidelines and CSO, media and the general public should push for transparency in the industry.
The Technical Lead, Accountability of the FOSTER Dr Michael Uzoigwe said the project is to improve benefits to Nigerians from the oil and gas extractive activities.
