The Nigeria Extractive Industries Transparency Initiative (NEITI) has reaffirmed its commitment to promoting transparency in the oil and gas sector, with a particular focus on reviewing the recent divestments by international oil companies (IOCs). According to NEITI Executive Secretary, Ogbonnaya Orji, the agency will conduct a comprehensive examination of the divestments involving 26 oil blocks worth $6.03 billion by five IOCs ¹.
The transactions under review include notable sales such as Shell to Renaissance ($2.4 billion), ExxonMobil to Seplat ($1.28 billion), and TotalEnergies to Chappal ($860 million). Orji emphasized that the oil and gas divestments are reshaping Nigeria’s industry, hence the need to ensure that the divestments adhere to due process.
To achieve this, NEITI will strengthen collaborations with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to ensure full disclosure of the financial, social, and environmental aspects of divestments. The agency will also expand its industry reports to include dedicated sections on divestments.
Orji noted that NEITI recognizes the urgent need for transparency in these transactions to protect national interests, host communities, and revenue flows. He expressed concerns over unresolved environmental issues in oil-producing communities and 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.
In 2024, the NUPRC gave regulatory approval to IOCs that sought requests to hand over their assets to local investors. Orji emphasized the need for transparency in the forward sales of oil and gas, stating that NEITI will intensify collaboration with NNPC Ltd. and other government agencies to disclose forward sales data, which impact government revenues and fiscal stability.
The NEITI Executive Secretary also highlighted the agency’s achievements since inception, including enhancing industry reporting and public disclosure, strengthening stakeholder engagement, and deepening civil society and public advocacy. He noted that NEITI has developed a comprehensive strategy to reposition itself as a strong, independent, and globally respected transparency institution.
Orji emphasized the importance of transparency in the extractive industry, citing the need to protect national interests, host communities, and revenue flows. He expressed concern that some of the divestments might not have properly addressed environmental issues raised by oil-producing communities.
In a related development, NEITI has reported that Nigeria received a total revenue of $831 billion from the oil and gas sector since the inception of NEITI in 1999. The agency also noted that the solid minerals sector contributed N1.556 trillion to the nation’s revenue from 2007 to 2023 ¹.
The NEITI Executive Secretary emphasized the need for transparency in the solid minerals sector, citing the rigid legal framework as a major challenge. He noted that the 2007 Minerals and Mining Act centers on the fact that the federal government issues mining licenses from Abuja, while the mining operations take place in the states, and the governors are the owners of the lands in the state.
Orji expressed concern that the current contribution of the solid minerals sector to the nation’s GDP is embarrassing, citing the need for reform in the sector. He emphasized the importance of transparency in the extractive industry, stating that NEITI will continue to work towards promoting transparency and accountability in the sector.
