Togo improving revenue collection with EITI

Togo’s 2011 EITI Report shows improvements in the government’s revenue collection system.

Togo’s 2011 EITI report, published 22 February 2013, shows the government has improved their revenue collection systems since last year.

Didier Kokou Agbémdaon, the National Coordinator of EITI Togo, explained how producing their 2010 EITI Report worked as diagnostic tool:

“Togo’s first EITI Report was an important diagnostic exercise for the resource sector, because it revealed that some government entities received revenues unknown to other public financial institutions.”

“To address this, all government entities collecting extractive revenues were audited by the Court of Auditors as part of the second EITI reporting exercise and therefore no longer operate in the dark.”

US $31 million in revenues from oil, mining and water

The government of Togo collected US $31 million in revenues from oil, mining and water in 2011, according to the 2011 EITI Report.

With a population of 6.8 million, this equaled to about US $4.5 per citizen in 2011. The extractive sector represented a modest 4.8% of total government income in 2011.

According to the Mining Code in Togo, water is considered an extractive resource and water extraction companies therefore participate in the EITI. Water extraction accounted for only 3% of government revenues from extractives.

Togo’s extractive sector dominated by mining

Togo’s limestone and phosphate mining dominates the extractive sector, contributing 77% of revenues reported in 2011. Although output has decreased over the last decade, Togo remains a significant producer of phosphate in sub-Saharan Africa.

Ongoing reforms to revive the sector combined with the discovery of new large deposits are expected to increase production and the significance of the mining sector in the coming years. 

Eni, the only company currently engaged in petroleum exploration in Togo, generated 9% of the revenues from the extractive sector.  

50% decline in revenues

Compared to the 2010 EITI Report, revenues seem to have dropped by almost 50%.

The National Coordinator for Togo EITI said the apparent decline is mainly due to a reclassification of payments and revenues to be reported.

“In 2011, we decided to limit reporting to revenues that are directly related to natural resource extraction. This has resulted in a much more realistic view of the sector’s contribution to the national economy,” he specified.

The one-off signature bonus paid by Eni in 2010 also contributed to higher revenues in 2010 than in 2011, during which no new agreements were signed.

Overview of licenses

The report contains an overview of licenses held by the companies involved in the reporting process, including information about exploration and production of commodities as well as the duration of the permits and location.

Companies have also reported the amount of minerals produced and any voluntary social contributions. An overview of audit opinions on the figures submitted by companies and government agencies is attached, verifying the accuracy of the data in the EITI report. 

Read the blog by EITI Togo on the publication of their 2011 EITI Report

 

Download Togo’s 2011 EITI Report

For further information about EITI in Togo, please visit www.eiti.org/togo