The Extractive Industries Transparency Initiative, a global standard body for good governance of oil, gas and mineral resources for about 120 member countries has called on the National Oil Company of Nigeria, NNPCL to be more transparent in its business dealings on behalf of the government.
EITI, in a report for 2023 titled ‘Progress Report’ made available on its website noted that opportunities remain to strengthen disclosures by the national oil company, NNPC, and to make progress on contract disclosures. “The country also needs to strengthen multi-stakeholder oversight of EITI implementation and NEITI.”
According to EITI, “An analysis of EITI disclosures on Nigeria’s oil sales has shown that there are significant differences in the discount and premium on Brent oil prices depending on the type of sale (e.g. spot contract, term contract, resource-backed loan); the identity of the buyer; and the beneficiary government entity for the specific oil sale. The discount or premium on Brent does not seem to be consistent across different buyers or across time.”
“The Nigerian government collects a significant share of oil and gas revenue in-kind as physical barrels of oil, which the national oil company, NNPC, is responsible for marketing and selling on the government’s behalf. However, there have been allegations in the past of oil being sold below market prices to politically exposed traders,” EITI further disclosed.
Meanwhile, EITI said the largest economy in Africa and leading oil exporter on the Continent, has upheld robust disclosures in its extractive industry in recent times, which inform extensive debate. “It also launched a public beneficial ownership register and the government has used ownership data to assess oil, gas and mining license applications,” EITI noted.
Commenting on the performance of the global extractive industry in 2023, Helen Clark, EITI Board Chair, said, “As shifting dynamics affect local economies and livelihoods, we must redouble our efforts to ensure responsible stewardship of finite natural resources, guarding against corruption and the misuse of resource wealth. Transparency and accountability mechanisms are paramount in supporting this effort, especially for the EITI with its focus on using data and dialogue to ensure sustainable revenue generation and to counter corruption.”
She noted that EITI remains unwavering in its commitment to transparency, accountability, and multi-stakeholder engagement.
Also speaking, Mark Robinson, EITI Executive Director, said the focus of EITI remains on supporting countries through capacity building and peer learning. “We will scale up our efforts to publish information from government and companies, enabling citizens and decision-makers to access EITI data.
With Validations under the 2023 EITI Standard due to begin in 2025, we are committed to equipping countries implementing the EITI Standard with the necessary tools and knowledge to meet our shared ambition. As we refine our strategic priorities and develop our three-year outlook, we are proactively anticipating future trends and challenges to ensure the continued relevance and impact of the EITI in the years ahead.”
