NNRC launches 2019 benchmarking exercise report Thursday
The Nigeria Natural Resource Charter (NNRC) will launch the 2019 benchmarking exercise report and policy dialogue on Thursday in Abuja.
The report presents the biennial findings from the assessment of Nigeria’s petroleum sector which covers from the period 2017 to 2019 and identifies petroleum sector progress, areas for improvements and empowers stakeholders to advocate for best practices within their various spheres of work in the sector.
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It assesses Nigeria’s petroleum sector against 12 precepts to offer guidance on key decisions faced by the government beginning with whether to extract resources in the first place and ending with decisions that determine how generated revenue can produce the maximum good for citizens.
The 2019 report provides an update on the last two years of petroleum sector governance, examined gaps in sector transparency and reported changes.
The dialogue will focus on its overarching precondition for effective petroleum resource management, determining whether Nigeria’s strategy, legal and institutional framework governing the petroleum sector secures the greatest benefit for citizens through a comprehensive national strategy, clear legal framework and competent institutions.
Programme Coordinator of the Nigeria Natural Resource Charter (NNRC), Tengi George-Ikoli stated that “the release of the report comes at an opportune time given the recent reforms instituted by the government and the omnibus reform in the form of the Petroleum Industry Bill (PIB) being championed by the Federal Ministry of Petroleum Resources.
“The governance gaps have been well articulated in the 2019 report and we believe that if appropriately addressed in the bill and subsequently implemented, Nigeria would have made appreciable improvement captured with a green in areas where it largely still remains at a red.
“From the findings, there are marginal changes from the 2017 report with 10 ambers and two reds being recorded. The reds have persisted against precepts that assess the impact of extraction activities on host communities and the commercial effectiveness of the national oil company, the Nigerian National Petroleum Corporation (NNPC).
“The major focus of the dialogue will be on those areas where there have not been any forms of improvement and the two precepts that will be affected when the PIB is eventually passed.”
He explained that there are key benchmarks Nigeria must attain and focus on as it targets reforms in the petroleum sector.
These include whether the government encourages efficient exploration and production operations, whether it allocates exploration rights transparently and if the current fiscal framework enables the government realize the full value of its resources consistent with attracting necessary investment.
Others are whether the government pursues opportunities for local benefits and monitors the environmental and social costs of resource extraction projects as well as whether the national oil company is accountable with well-defined mandates and an objective of commercial efficiency.
