- within Strategy topic(s)
- within Strategy, Insurance and Technology topic(s)
INTRODUCTION
Nigeria ranks as the 15th largest oil producer globally and the leading producer on the African continent. It also holds the largest proven natural gas reserves in Africa. The oil and gas sector constitutes the backbone of the Nigerian economy, reportedly accounting for approximately 65% of government revenue and over 85% of total export earnings. In contrast, the solid minerals sector remains grossly underdeveloped, contributing less than 1% to the national GDP, despite confirmed deposits of commercially viable minerals in all 36 states and the Federal Capital Territory.
However, for decades, issues such as revenue mismanagement, corruption, and inefficiencies in the sector have hindered the country's ability to maximize the benefits of its resource wealth. The Nigeria Extractive Industries Transparency Initiative (NEITI) was established as a response to these challenges, aiming to provide independent oversight and ensure that the government and private sector actors adhere to global transparency standards. NEITI operates under the global Extractive Industries Transparency Initiative (EITI) framework, which promotes the open and accountable management of oil, gas and mineral resources. NEITI's mandate includes conducting regular audits, advocating for evidence-based policy reforms, and fostering accountability across government and industry stakeholders.
Given the extractive sector's pivotal role in Nigeria's fiscal stability and national development, transparency is not merely an aspiration; it is imperative. This article critically examines NEITI's principal achievements and the challenges it faces in advancing sustainable resource governance in the extractive sector.
Neiti Legal Framework
NEITI operates under the legal authority of the NEITI Act, 2007, which establishes it as an autonomous body aligned with EITI. The Act mandates NEITI to promote transparency, accountability, and good governance in Nigeria's extractive sector through periodic audits, monitoring of revenue flows, and enforcement of international best practices. NEITI reports directly to the President and the National Assembly and is governed by the National Stakeholders Working Group (NSWG), a multi-sectoral oversight body responsible for audit approval, regulatory enforcement, and policy coordination.
The Act provides for stringent compliance mechanisms, including penalties for non-disclosure and fraudulent reporting of production volumes, sales, income or statements of account. Companies that submit false information or wilfully or negligently fail to perform their obligations under the Act may be liable to fines of not less than N30 million, repayment
To read the full article, kindly download the PDF
To view original Tope Adebayo article, please click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
