The Nigeria Extractive Industries Transparency Initiative (NEITI) is mandated by law to promote transparency and accountability in the management of Nigeria’s oil, gas and mining revenues. A major component of the on-going anti-corruption reform in Nigeria, it is the national version of the Extractive Industries Transparency Initiative (EITI), which is a global movement aimed at ensuring that extractive resources aid sustainable development.
NEITI was inaugurated in February 2004 by former President Olusegun Obasanjo when he set up the National Stakeholders Working Group (NSWG) under the leadership of Mrs Obiageli Ezekwesili. The NSWG oversees the activities of NEITI and is made up representatives of government, extractive companies and civil society. Among others, NEITI commissioned the first comprehensive audit of Nigeria’s petroleum industry for the period 1999 to 2004 and is working with various stakeholders to build national consensus on the need for extractive revenue transparency in Nigeria.
To give legal backing to the work of NEITI, a bill was introduced to the National Assembly in December 2004. The NEITI Bill was eventually passed and harmonized by the two chambers of the National Assembly and subsequently signed into law by former President Obasanjo on May 28, 2007. With this, Nigeria became the first EITI-implementing country with a statutory backing for its operations.
The Nigeria Extractive Industries Transparency Initiative Act 2007 mandates NEITI to promote due process and transparency in extractive revenues paid to and received by government as well ensure transparency and accountability in the application of extractive revenues.
Since 2004, NEITI has engaged in various activities in pursuit of its mandate. The major activities include the following:
- Commissioning of the Financial, Physical and Process Audits of Nigeria’s Petroleum Industry for the period 1999 to 2004. This was the first comprehensive audit of this strategic industry since Nigeria struck oil in 1956;
- Communicating the findings of the audit in a comprehensive and comprehensible manner to various stakeholders;
- Working with government agencies and other stakeholders to remedy the lapses identified by the audit;
- Building the capacity of civil society organizations, government officials, parliamentarians and the media to understand and monitor extractive revenue transparency in Nigeria;
- Forging a national consensus on need for extractive revenue transparency in Nigeria through outreach and advocacy activities such as road-shows, consultative forums and town-hall meetings.
The National Stakeholders Working Group (NSWG) is the governing body of NEITI. The NSWG is responsible for the formulation of policies, programmes and strategies for effective implementation of NEITI’s mandate. The chairperson of the NSWG is Prof. Assisi Asobie. The NSWG is made up representatives of extractive industry companies, civil society, labour unions and the geo-political zones and experts in the extractive industries. The Executive Secretary, who also serves as the secretary of NSWG, is responsible for the day-to-day administration of NEITI.
To promote transparency and engender due process in the Nigerian Extractive Industries.
For effective implementation of its mandate, NEITI will conduct comprehensive audits of the extractive sector, build capacities of regulatory agencies and the civil society, and mobilize Nigerians in support of extractive revenue transparency more...
A National Stakeholders Working Group, composed of representatives of Government Agencies, Extractive Companies, Civil Societies and Geo-political zones, was set up to provide guideance and feedback for the initiative more...
NEITI Principles and Criteria
At the June 2003 London conference, participants agreed the EITI Principles that are the cornerstone of the initiative. In the pilot phase of the initiative it was recognised that clear guidance was required to assist countries and companies interested in supporting the initiative more...
NEITI POLICY BRIEF
As Africa's biggest economy and most populous country, and as a country highly exposed to the negative impacts of anonymous comapanies, Nigeria should seize the opportunity to lead the charge in the growing for full disclosure of ownerships of companies across the Nigeria's extractive sector, which despite the slump in oil prices still accounts for the bulk of government revenues...It is therefore important for the President Buhari administration to prioritize this aspect of transparency and champion policy and legal frameworks for lifting the veil of secrecy on ownership of companies in the extractive sector in Nigeria. more...