NEITI urges stakeholders in oil,gas to uphold compliance, transparency
By Yusuf Yunus
The Nigerian Extractive Industries Transparency Initiative (NEITI) has called on stakeholders in the oil and gas sector to adopt effective measures that ensure the highest standards of transparency and accountability in the extractive industry.
Dr. Orji Ogbonnaya Orji, NEITI’s Executive Secretary, issued this call during the NEITI-Companies Forum hehelin Lagos.
The forum, titled “Beyond Validation: Strengthening NEITI Companies Engagement for the Sustainability of the EITI Process,” was designed to refocus efforts on maintaining Nigeria’s commitment to global EITI standards.
Orji emphasized that companies should not only disclose operational data but also collaborate with stakeholders to educate their host communities about the benefits of EITI.
He highlighted the forum as a crucial platform for enhancing cooperation between NEITI and companies in Nigeria’s oil, gas, and mining sectors, with the goal of promoting transparency, accountability, and good governance.
NEITI remains dedicated to collaborating with the Oil Producers Trade Section (OPTS), the Miners’ Association, and other extractive entities to reinforce the Companies Forum, ensuring ongoing high standards of compliance and transparency.
Dr. Orji also expressed gratitude to the 207 companies included in the 2022-2023 industry reports (70 oil & gas and 137 solid minerals), acknowledging their commitment to EITI standards.
He noted that in 2021, the oil and gas sector contributed $23.0456 billion to Nigeria’s economy, while the solid minerals sector generated N193 billion, a 30% increase from the previous year.
Despite this, he stressed the sector’s potential for further economic contribution.
The NEITI 2021 reports revealed improved compliance, with 94% of oil and gas companies and 87% of solid minerals companies meeting reporting standards.
Financial discrepancies were reduced to less than 1% of total revenues, indicating enhanced data reconciliation.
Orji urged continuous support from operators, noting that the 2022-2023 industry reports are progressing well and are expected to be released by September 2024.
He stressed the importance of timely data submission to complete the report cycle.
He also highlighted that the latest validation exercise scored companies 60 out of 100 on stakeholder engagement, a decline from the previous satisfactory rating.
Orji called for greater participation in NEITI activities and support at the sub-national level.
Orji announced the near completion of the NEITI Data Center, which will serve as a central repository for industry data and reports, facilitating decision-making and compliance with the EITI Open Data protocol.
The forum also included the launch and dissemination of three NEITI industry reports and the development of a remedial action plan.
Orji noted progress in stakeholder relations, including resolving conflicts within civil society organizations and establishing the NEITI House Dialogue, which brings together policymakers, industry leaders, and civil society.
Orji reaffirmed NEITI’s commitment to supporting companies in enhancing transparency and accountability, emphasizing that NEITI’s role extends beyond enforcement to creating an environment where businesses can thrive.
