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LAGOS, March 8(Xinhuanet)-- The Nigerian government said Tuesdaythat it would strengthen bidding process for contracts in the oil sector to enhance quality service delivery, transparency and accountability.
Oby Ezekwesili, head of the Nigerian Budget Monitoring and Price Intelligence Unit, told reporters in Lagos that"in few weeks time independent auditors that emerged from recent ITP will arrive the country for financial and physical audit of operations in Nigerian's oil sector."
The International Tender Process(ITP), which permits the advertisement of contracts in the oil sector globally with the expectation that both local and foreign operators compete for the job, was discarded in Nigeria in 1997 when the issue of local content in the oil sector took the front burner of national discourse.
Renewed interest was shown in the ITP with the establishment ofthe Nigerian Extractive Industries Transparency Initiative(EITI) which is meant to guarantee due process, transparency and fair play to all categories of contractors in the nation's oil operations.
"All contracts awarded in the oil sector must be open to local and international operators and all parties subjected to due process," Ezekwesili stated.
Various multilateral organizations including the World Bank andthe International Monetary Fund have called on Nigeria to encourage openness, transparency and accountability in the oil sector to ensure enhanced revenue and probity in the appropriationand use of oil income proceeds.
The oil sector generates 40 percent of the gross domestic product of Nigeria, Africa's top oil producer with a daily output of about 2.5 million barrels, 75 percent of its annual budget and 90 percent of its foreign exchange earnings.
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