The Nigeria Extractive Industries Transparency Initiative (NEITI) has underscored the mandatory nature of its audit process for all companies operating within Nigeria’s extractive sector. This declaration, emanating from NEITI’s Executive Secretary, Dr. Orji Ogbonnaya-Orji, reinforces the agency’s commitment to transparency and accountability as cornerstones of a thriving extractive industry. By emphasizing compliance, NEITI aims to foster investor confidence, align national practices with global standards, and cultivate public trust in the management of Nigeria’s valuable natural resources. This proactive stance underscores the importance of regulatory oversight in ensuring responsible resource governance and maximizing benefits for all stakeholders.
The NEITI Companies Forum serves as a crucial platform for dialogue and collaboration between NEITI and companies operating in the oil, gas, and mining sectors. This forum facilitates discussions on a wide range of critical issues, including data disclosure related to company payments, beneficial ownership transparency to unveil the true beneficiaries of resource extraction, contract transparency to shed light on agreements governing resource exploitation, sub-national fiscal sustainability to ensure equitable distribution of resource revenues, climate change considerations in extractive operations, and fostering robust multi-stakeholder collaboration. By providing a space for open communication and constructive engagement, the forum enables NEITI to address industry concerns, promote best practices, and work towards a more sustainable and transparent extractive sector.
Dr. Orji announced the commencement of work on the 2024 NEITI Industry Reports, underscoring the agency’s commitment to timely reporting and comprehensive analysis of the sector’s performance. He urged companies to ensure full and timely compliance with reporting deadlines, emphasizing the importance of accurate and transparent data in informing policy decisions and fostering public accountability. The timely completion of these reports demonstrates NEITI’s dedication to providing up-to-date information on the extractive industries, enabling stakeholders to assess progress, identify challenges, and contribute to informed decision-making.
The Companies Forum provided a valuable opportunity for industry representatives to voice their operational challenges and seek solutions through collaborative dialogue. Concerns raised included the burden of multiple taxation, royalties, and levies imposed by various government agencies, highlighting the need for streamlined and efficient regulatory frameworks. The forum’s chairman, Mr. Gwueke Ajaifia, echoed the frustration of companies grappling with overlapping data and payment demands, urging NEITI to escalate these concerns to the federal government for prompt action. This feedback loop underscores the importance of the forum in channeling industry feedback to policymakers and advocating for a more conducive operating environment.
Key stakeholders within the extractive sector acknowledged NEITI’s role in fostering transparency and accountability. Mr. Dele Ayanleke, President of the Miners Association of Nigeria, commended NEITI for establishing the Companies Forum and encouraged the agency to leverage its multi-stakeholder framework and international partnerships to address industry concerns and restore investor confidence. Mr. Taiwo Olasupo, representing the South-West Zone on NEITI’s National Stakeholders Working Group, highlighted the region’s rich mineral deposits and encouraged investment to unlock economic opportunities and create jobs in host communities. These endorsements highlight the broad-based support for NEITI’s mandate and its crucial role in promoting responsible resource governance.
The Lagos session of the NEITI Companies Forum delved into pressing industry issues, including divestments, liabilities, and the impact of ongoing federal government reforms on the sustainability of Nigeria’s extractive industries. By addressing these critical topics, the forum provides a platform for constructive dialogue and collaborative problem-solving. NEITI, established under the NEITI Act of 2007 and aligned with the global Extractive Industries Transparency Initiative (EITI) framework, plays a pivotal role in ensuring the prudent management of Nigeria’s natural resources. Through independent audits, compliance monitoring, and advocacy for reforms, NEITI strives to enhance governance, attract sustainable investments, and maximize the benefits of resource extraction for all Nigerians. The agency’s commitment to transparency and accountability underscores its crucial role in shaping a more sustainable and equitable future for Nigeria’s extractive sector.
