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Viewing cable 08ABUJA1603, NIGERIA: NEITI BRIEFS U/S JEFFERY AND REQUESTS ASSISTANCE

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Reference ID Created Released Classification Origin
08ABUJA1603 2008-08-12 14:17 2011-08-25 00:00 UNCLASSIFIED Embassy Abuja
VZCZCXRO8727
PP RUEHMA RUEHPA
DE RUEHUJA #1603 2251417
ZNR UUUUU ZZH
P 121417Z AUG 08
FM AMEMBASSY ABUJA
TO RUEHC/SECSTATE WASHDC PRIORITY 3671
INFO RUEHOS/AMCONSUL LAGOS PRIORITY 9800
RUEHZK/ECOWAS COLLECTIVE
RHEBAAA/DEPT OF ENERGY WASHDC
UNCLAS ABUJA 001603 
 
UNCLASSIFIED 
SIPDIS 
 
DEPT OF ENERGY FOR CAROLYN HAYLOCK AND GEORGE PERSON 
 
E.O. 12598: N/A 
TAGS: EPET ENRG ECON PGOV EAID NI
SUBJECT: NIGERIA: NEITI BRIEFS U/S JEFFERY AND REQUESTS ASSISTANCE 
 
SENSITIVE BUT UNCLASSIFIED - NOT FOR DISTRIBUTION OUTSIDE USG 
 
1. (SBU) SUMMARY: In a July 25 meeting, Nigerian Extractive 
Industries Transparency Initiative (NEITI) officials briefed 
visiting Under Secretary Reuben Jeffery and requested additional USG 
assistance to strengthen the institution's capacity to implement 
required audits of revenues and expenses in the gas and oil sectors. 
 NEITI has made strides since its creation and continued USG 
assistance could increase transparency in Nigeria' soil and gas 
sectors.  END SUMMARY. 
 
2. (SBU) Under Secretary (U/S) for Economic, Energy and Agricultural 
Affairs Reuben Jeffery, the Ambassador, and Embassy staff met with 
Nigerian Extractive Industries Transparency Initiative (NEITI) 
Chairman Professor Assisi Asobie and NEITI Executive Secretary 
Mallam Sa'eed July 25.  The U/S acknowledged NEITI's leadership on 
transparency and Asobie thanked the Embassy and USAID for its 
continued support and expressed sincere gratitude for USAID's 
assistance to civil society organizations (CSO) that were 
instrumental in pushing EITI legislation through the National 
Assembly.  He urged USAID to work with CSOs to advocate for 
implementation of NEITI at the state level.    Sa'eed requested 
additional USG assistance to train and support staff as a way to 
strengthen NEITI's capacity to implement required audits of revenues 
and expenses in the gas and oil sectors. 
 
3. (U) Sa'eed asserted that in order to fight oil theft in the Niger 
Delta, the GON needed to create a control mechanism to publish oil 
sales, perhaps with description or source information, which would 
include disclosure of the commodity buyer and shipment destinations. 
 The Ambassador offered to look for available models to address 
supply and demand, perhaps aided by the use of electronic bills of 
lading.   Sa'eed reiterated NEITI's staff needs, reporting that the 
institution had a staff of only 35, but needed about 75, and that a 
lack of knowledge of how the extractive industries operated, 
particularly oil and gas, slowed down the auditing process. 
 
NEITI Background 
--------------- 
 
4.  (U) Nigeria signed on to the Extractive Industries Transparency 
Initiative (EITI) in 2004 to boost its fight against corruption. 
NEITI has recorded several achievements in its four years of 
operations, such as commissioning and publishing (?) the first 
comprehensive audit of the petroleum sector for the period 1999 to 
2004.  NEITI's future challenges are two-fold:  1)upgrade the 
technical skills of current auditors, and recruit and retain 
auditors and specialists with extractive industries experience; and 
2)obtain appropriate assistance to develop a global 
information-sharing database to capture oil sale information, 
matching sales with  delivery recipients. 
 
5. (U) President Yar'Adua inaugurated the current NEITI board 
January 29, 2008 in accordance with the 2007 NEITI Act.  Its mandate 
is to promote transparency and accountability in Nigeria's 
management of revenues from the oil, gas, and mining sectors.  The 
oil sector provides 20 percent of Nigeria's GDP, 95 percent of 
foreign exchange earnings, and about 80 percent of budgetary 
revenues.  A 2007 revision in NEITI's enabling legislation extended 
its mandate to include examining the use of revenues from petroleum 
and mineral sales, allowing a new focus on state-level expenditure 
of oil proceeds. 
 
6. (U) COMMENT: USG and other donor assistance continues to support 
NEITI.  The Embassy has initiated a NEITI Support Group, coordinated 
by the World Bank, but NEITI could benefit from additional technical 
assistance.  A new National Stakeholder Working Group (NSWG), which 
includes representatives from the extractive industries, civil 
society, relevant labor unions, industry experts, and one member 
from each of Nigeria's six geo-political zones, appears to be making 
progress.  END COMMENT. 
 
PIASCIK