The Public Accounts Committee (SPAC) of the Senate has queried the Nigeria Extractive Industries Transparency Initiative (NEITI) over the N960 million 2022 budget allocation it disbursed as personnel cost on the 43 persons on its staff list.
NEITI’s Executive Secretary, Dr. Orji Ogbonnaya had appeared before the committee to defend the agency’s allocation in the 2023 Appropriation Bill for the first time.
On the performance of the 2022 Budget, Orji explained that the personnel cost of the agency was N960 million while overhead cost was N760.9 million and the capital cost was is N344 million.
Explaining further, he said 51 per cent of personnel cost had been spent while 58 per cent of overhead cost spent and only 50 per cent of capital had been released so far.
The Chairman of the Committee, Senator Matthew Urhoghide (PDP -Edo South), wondered how the agency could have spent only 51 per cent of its personnel cost as at November 2022, saying it may be a case of over bloated Personnel Cost in the agency.
Urhoghide said: “You have only taken 51 per cent of your personnel cost as at November, 2022, your personnel cost is really too high, you have only two months to the end of the year, you have collected 51 per cent of your personnel cost.
“This is one case of personnel budget that is over bloated, what has happened amounts to systemic leakage. We are going to reduce your personnel cost to less than N500 million.”
Responding, Orji said when the agency started operations, it was only on oil and gas, but at present, the agency has extended its services to the solid mineral sector and it needs more manpower to carry out its operations.
He said the NEITI has 43 personnel on its staff list, adding that the agency had approval to recruit more staff and this was made available in the 2022 budget and the process had just been concluded.
He added that the recruited 70 workers, though already captured on the Integrated Payroll and Personnel Information System (IPPIS) have not been receiving salaries.
A member of the Committee, Senator Ibrahim Danbaba, urged the NEITI boss to submit his agency’s nominal roll to the panel for verification.
