MARKET NEWS

BY Ruth Tene Natsa 

The Nigeria Extractive Industry Transparency Initiative (NEITI) has said that Nigeria received a total revenue of $831 billion dollars from Oil and Gas, since inception of NEITI in Nigeria from 1999 to 2023.

Orji Ogbonnaya Orji, Executive Secretary of NEITI, said the revenue recorded were in contrast to those of solid minerals, which had only got N1.556 trillion from 2007-2023.

Orji, in his remarks at the Agency’s 2025 Quarter I Press Briefing held in Abuja on Friday, said “NEITI is expanding its report to include Beneficial Ownership and Contract Transparency” in the 2024 Report, to help avert tax evasion, terrorism financing and money laundering among others.”

Orji recalled that the Agency had begun on a challenging note, grappling with serious operational, institutional, and governance challenges that threatened its effectiveness, including the absence of a functional National Stakeholders Working Group (NSWG)”.

The challenges he said, ” included the threats of eviction from a rented office space, an ageing and disoriented workforce, Financial constraints, stakeholder apathy, weak institutional capacity, Poor program content, policy focus, and declining public confidence among several others.”

Orji noted that beyond the internal challenges, the global extractive industry was undergoing rapid transformation at the time

”Issues such as energy transition, beneficial ownership transparency, contract disclosure, and the implementation of Nigeria’s Petroleum Industry Act (PIA) were reshaping the sector, and the agency needed to adapt—not just to remain relevant but to lead the charge for greater accountability in extractive governance”, he added.

The Executive Secretary, however, noted that NEITI was faced with the realities, which prompted them to pursue a deliberate strategy to reposition NEITI as a strong, independent and globally-respected transparency institution.

Presenting NEITI’s achievements since inception, Orji stated, “Enhancing Industry Reporting & Public Disclosure, Strengthening Stakeholder Engagement, Deepening Civil Society and Public Advocacy, strengthening Institutional and Workforce Development, Development of a Five-Year Strategic Plan (2022–2026) With funding from DFID-FOSTER, NEITI developed a comprehensive strategy that serves as a road-map for our goals, annual work plans, and budgets”.

Other acheievements he said included “Establishment of the NEITI Data Center Project, Reconstitution of the Inter-Ministerial Task Team (IMTT) and Strengthening Nigeria’s Anti-Corruption Agenda.”

The Executive Secretary noted that in response to recent genuine concerns by the Agency’s key partners, the Civil Society, NEITI NSWG would be considering at its next meeting the opportunities to review and undertake Strengthening Transparency in Oil & Gas Divestment, Ensuring Transparency in Forward Sales of Oil & Gas, Environmental Liabilities,

Enhancing Beneficial Ownership Transparency and Commitment to Expanding Industry Reporting

He added that moving ahead NEITI would deepen beneficial ownership disclosures, strengthen revenue tracking and contract transparency and ensure full implementation of extractive sector governance reforms.

Speaking on the low contribution of Solid Minerals to the nation’s GDP, Orji noted that despite the sector holding the largest potentials, the 0.8% current contribution is embarrassing, owing to its rigid legal framework.

He noted the rigidity of the 2007 Minerals and Mining Act as complex challenges holding back solid minerals contribution

“For the solid minerals sector, we only had data for 17 years, 2007-2023, and we have earned N1.556 trillion 17 years later.

“The most complex of the challenges are the legal framework. We think the legal framework is very rigid, to the extent that investors find it very difficult to enter and exit.,investors lack confidence putting their investment.

“The 2007 Mineral And Mining Act, centers on the fact that the federal government issues mining licences from Abuja and the mining operations takes place in the states and the governors are the owners of the lands in the state as all the powers are vested on them. So if you get a licence in Abuja and arrive the state you still have to deal with the bureaucracy in the state as well as dealing with host community challenges,” he noted.