NEITI vows to review $6.03bn divestments by IOCs, assures on monitoring effective use of revenue from mineral resources
UGO AMADI
The Nigeria Extractive Industries Transparency Initiative (NEITI) has announced a review of divestments involving 26 oil blocks worth $6.03 billion by five International Oil Companies (IOCs).
The Executive Director, NEITI, Dr Orji Ogbonnaya Orji, made this known during its first quarter media briefing in Abuja.
The transactions include notable sales such as Shell to Renaissance ($2.4 billion), ExxonMobil to Seplat ($1.28 billion), and TotalEnergies to Chappal ($860 million).
Orji, while briefing the newsmen, said the oil and gas divestments were reshaping Nigeria’s industry, hence the need to ensure that the divestments adhered to due process.
He said NEITI would strengthen collaborations with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to ensure full disclosure of financial, social, and environmental aspects of divestments.
“NEITI recognises the urgent need for transparency in these transactions to protect national interests, host communities, and revenue flows.
“To achieve this, NEITI will expand industry reports to include dedicated sections on divestments. We will intensify collaboration with NNPC Ltd. and other government agencies to disclose forward sales data.
“NEITI will promote greater public awareness and engagement in asset transfers and ensure transparency in forward sales (pre-sales of crude oil and gas) to impact government revenues and fiscal stability,’’ he said.
Orji, while emphasising on ensuring due process and proper environmental remediation in these deals, expressed concerns over unresolved environmental issues in oil-producing communities.
He called for collaboration with regulatory bodies such as NUPRC and the Ministry of Environment to ensure transparency and enforce accountability for clean-up costs and remediation efforts.
Orji expressed concern that some of the divestments might not have properly addressed environmental issues raised by oil producing communities.
Also, following complaints of inadequate supply of crude oil by local refineries, NEITI said it would review the forward sales of Nigeria’s crude oil by the Federal Government in exchange for loans.
He stated that Nigeria had earned $831 billion from oil and gas in the past 23 years when NEITI began the conduct of the audit of the sector.
He also disclosed that over $4.85 billion had been recovered from the disclosures of $8.26 billion made in its 2021 oil and gas report.
“As we commence the 2024 Oil, Gas, and Solid Minerals Reports, we will expand our reporting framework to address: Forward sales and pre-export financing transactions,” he said.
The executive secretary said while Nigeria had made progress in ensuring transparency in the oil and gas, and solid minerals sectors, a lot of work still needed to be done regarding institutional constraints and funding limitations
.assures to monitor effective use of minerals resources revenues
The Nigeria Extractive Industries Transparency Initiative (NEITI) has reaffirmed its unwavering commitment to ensuring that Nigeria’s oil, gas and mining revenues are managed for the benefit of all citizens.
NEITI said it would deepen beneficial ownership disclosures to strengthen revenue tracking, contract transparency and ensure full implementation of extractive sector governance reforms.
Dr Orji Ogbonnaya Orji, Executive Secretary, NEITI made this known while briefing the newsmen in Abuja on the progress it had made in advancing transparency and accountability in Nigeria’s extractive sector.
In the bid to enhance Beneficial Ownership Transparency, Orji said NEITI remained committed to exposing hidden ownership structures to combat corruption.
“We will obtain updated beneficial ownership data from the Corporate Affairs Commission (CAC) and publish disclosures on companies acquiring divested assets.
“Transparency is not just a policy; it is a responsibility. NEITI remains steadfast in ensuring that Nigeria’s oil, gas, and mining revenues are managed for the benefit of all citizens.
“However, achieving this vision requires collective effort: To the press, your role in holding power accountable is more critical than ever. To our stakeholders, your collaboration remains invaluable.
“To the Nigerian people, your demand for accountability is the fuel that drives our mission. Let us continue this journey together, for a more transparent, accountable, and just extractive sector,’’ he said.
He said on assumption of office as NEITI’s Executive Secretary, it inherited an institution at a crossroads while NEITI was grappling with serious operational, institutional and governance challenges that threatened its effectiveness.
These, he said included the absence of a functional National Stakeholders Working Group (NSWG)-a key requirement for sustaining Nigeria’s membership in the global Extractive Industries Transparency Initiative (EITI).
He included others as financial constraints, stakeholder apathy, and weak institutional capacity, poor programme content, policy focus, and declining public confidence.
Orji said beyond these internal challenges, the global extractive industry was undergoing rapid transformation, while issues such as energy transition, beneficial ownership transparency, contract disclosure, and the implementation of Nigeria’s Petroleum Industry Act (PIA) were reshaping the sector.
“Faced with these realities, we pursued a deliberate strategy to reposition NEITI as a stronger, independent, and globally respected transparency institution.
“Some of our major achievements include: Enhancing Industry Reporting and Public Disclosure.
“We improved the scope, quality, and timeliness of NEITI’s industry reports, expanding our reporting focus to include beneficial ownership, contract transparency, and environmental impacts.”
“Reconstitution of the NEITI NSWG, ensuring high-level leadership, making it the only Federal Board chaired by the Secretary to the Government of the Federation (SGF),’’ he said.
He further said that it strengthened collaboration with oil, gas, and mining companies, reviving and reconstituting the NEITI-Companies Forum to enhance industry engagement.
He said it enhanced engagement with Civil Society Organisations (CSOs) to empower citizens to monitor and demand accountability.
He said with funding from DFID-FOSTER, NEITI developed a comprehensive Five-Year Strategic Plan (2022–2026) that served as a roadmap for its goals, annual work plans, and budgets.
“As the plan nears completion in 2026, we recommend an immediate review to ensure continuity and relevance,’’ he said.
He recalled that it established the NEITI Data Centre Project, a strategic initiative designed to centralise and automate extractive sector data, ensuring open access to industry information and systematic disclosures in line with the EITI 2023 standards.
He said the Inter-Ministerial Task Team (IMTT) responsible for implementing NEITI’s report recommendations was reconstituted in May 2024, after seven years of inaction.
He added that the membership was upgraded to Director-level representation, which strengthened decision-making and policy implementation capacity
