Points out areas of possible improvement
Adopts energy transition framework
CHIGOZIE AMADI
The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced the release of its advisory report on the conduct of the 2022–2023 mini bid round and the 2024 licensing round.
In a statement in Abuja at the weekend, NEITI commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for notable progress in the conduct of the bids, but pointed to the areas the upstream regulator should improve upon.
It stated that this followed its independent observation and monitoring of the pre-qualification and technical bid processes, in line with its statutory mandate under the Petroleum Industry Act (PIA) 2021 and the global Extractive Industries Transparency Initiative (EITI) Standard.
Specifically, it highlighted the NUPRC’s efforts including: “Notable improvements in inclusivity, digitalisation, and procedural integrity.”
The report, presented to the NEITI National Stakeholders Working Group (NSWG) at its statutory meeting in Umuahia, Abia State, described the licensing rounds as “significant milestones in Nigeria’s upstream petroleum sector, designed to attract credible investments, unlock hydrocarbon potential, and advance national development objectives.”
The report noted that the licensing process was generally professional, transparent, and inclusive, with adherence to published criteria as required by the PIA and EITI provisions.
Special concessions granted to indigenous and emerging firms were acknowledged as a progressive step that enhanced stakeholder participation and public confidence, it added.
However, NEITI’s report also identified areas of improvement, including: Strengthening the evaluation methodology and metrics; enhancing transparency in result disclosure; improving public access to bidder information; ensuring full disclosure of beneficial ownership and integrating technical and commercial value assurance in evaluations.
The report offered actionable recommendations to bolster future rounds, emphasising transparent disclosures, standardised scoring, and consistent stakeholder engagement.
“The NSWG commended NUPRC’s cooperation with NEITI and encouraged the adoption of the recommendations outlined in the advisory,” Executive Secretary of NEITI, Ogbonnaya Orji, said.
“We remain committed to working collaboratively with regulators, civil society, and industry stakeholders to institutionalise transparency, good governance, and sustainable development in Nigeria’s extractive industries,” he added.
At the same meeting in Umuahia, the NEITI Board also adopted a comprehensive Energy Transition and Climate Accountability Framework, developed in alignment with Nigeria’s national energy transition plan, global climate obligations under the Paris Agreement, the Sustainable Development Goals (SDGs), and the 2023 EITI Standard.
The framework, it said, redefines NEITI’s role in the energy transition, introducing a transparent and accountable mechanism for: Tracking greenhouse gas emissions and climate-related financial risks.
In addition, it has a mechanism for monitoring divestments by International Oil Companies (IOCs); overseeing the implementation of Host Community Development Trusts (HCDTs) under the PIA; promoting a just transition planning and climate disclosures and aligning NEITI’s reports with national climate instruments.
“The framework positions Nigeria at the forefront of climate-compliant resource governance,” Orji added. “It is our bold response to the urgent need for transparency in how oil investments and divestments affect host communities and the environment,” he stressed.
To operationalise this policy, NEITI outlined key implementation steps covering oil, gas, and solid minerals reporting, stakeholder engagement, institutional coordination, and bi-annual performance reviews.
The framework, it said, is being developed with support from the Ford Foundation as part of NEITI’s ongoing study on the impact of energy transition on Nigeria’s oil-dependent economy.
NEITI assured all stakeholders that it will continue to lead reforms that align resource governance with global sustainability imperatives while ensuring social and environmental justice across Nigeria’s extractive sector.
