The Nigeria Extractive Industries Transparency Initiative (NEITI) has revealed that it will review the divestments of 26 oil blocks valued at $6.03 billion, which involve five International Oil Companies (IOCs).

During a media briefing in Abuja for the first quarter, NEITI’s Executive Director, Dr. Orji Ogbonnaya Orji, shared this information. The divestments include significant transactions such as Shell’s sale to Renaissance for $2.4 billion, ExxonMobil’s sale to Seplat for $1.28 billion, and TotalEnergies’ sale to Chappal for $860 million.

Orji stated that divestments in the oil and gas sector are reshaping Nigeria’s industry, emphasising the necessity in following the right protocols throughout the process. He stated that NEITI intends to strengthen its partnership with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to ensure complete transparency regarding the financial, social, and environmental dimensions of these divestments.

NEITI recognizes the significance of transparency in these transactions to safeguard national interests, support local communities, and maintain income sources. To facilitate this, NEITI plans to enhance its industry reports by adding specific sections on divestiture. Also, we will strengthen our partnership with NNPC Ltd. and other government bodies to provide information on future sales. NEITI aims to increase public awareness and involvement in asset transfers, ensuring transparency in the upcoming sales of petrol and crude oil to boost government revenue and fiscal stability.

Orji stressed the importance of following proper procedures and ensuring comprehensive environmental cleanup in these agreements, sharing his concerns about the ongoing environmental issues that oil-producing communities continue to face. He called for cooperation with regulatory bodies like the NUPRC and the Ministry of Environment to enhance transparency and accountability regarding cleanup costs and remediation efforts.

Orji pointed out that some divestments might not have sufficiently addressed the environmental problems highlighted by these communities. In response to complaints about inadequate crude oil supply from local refineries, NEITI revealed plans to review the Federal Government’s forward sales of Nigeria’s crude oil in exchange for loans. He mentioned that over the last 23 years, since NEITI began its audits in the sector, Nigeria has earned an impressive $831 billion from oil and gas.

He also revealed that more than $4.85 billion was recovered from the $8.26 billion reported in the 2021 oil and gas report. The executive secretary mentioned that although Nigeria has made strides in promoting transparency in the oil and gas and solid minerals industries, there is still much to be done to address issues related to institutional challenges and funding shortages.

Ensuring proper oversight of the use of revenue from mineral resources.

The Nigeria Extractive Industries Transparency Initiative (NEITI) has reiterated its strong dedication to managing Nigeria’s oil, gas, and mining revenues for the benefit of all citizens.

NEITI has unveiled initiatives aimed at improving the transparency of beneficial ownership, which will aid in revenue tracking, ensure clarity in contracts, and fully enact governance reforms within the extractive sector. During a press conference in Abuja, Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, discussed the advancements made in fostering transparency and accountability in Nigeria’s extractive industries. To enhance Beneficial Ownership Transparency, Orji emphasized NEITI’s dedication to uncovering hidden ownership structures as a means to combat corruption.

We will gather updated beneficial ownership information from the Corporate Affairs Commission (CAC) and disclose details regarding companies that are acquiring divested assets.

“Transparency is not merely a policy; it is a fundamental obligation. NEITI is committed to ensuring that Nigeria’s oil, gas, and mining revenues are utilized for the benefit of all citizens. However, realizing this vision demands a united effort: To the media, your role in holding those in power accountable is more crucial than ever. To our stakeholders, your partnership is essential.

To the Nigerian populace, your insistence on accountability fuels our mission. Let us continue this journey together towards a more transparent, accountable, and equitable extractive sector,” he stated.

Upon taking office as NEITI’s Executive Secretary, he noted that the organization was at a pivotal moment, facing significant operational, institutional, and governance challenges that jeopardized its effectiveness.

These challenges included the lack of a functional National Stakeholders Working Group (NSWG), which is vital for maintaining Nigeria’s membership in the global Extractive Industries Transparency Initiative (EITI).

He also highlighted other issues such as financial limitations, stakeholder disengagement, inadequate institutional capacity, subpar program content, policy focus, and waning public trust.

Orji pointed out that, in addition to these internal hurdles, the global extractive industry is experiencing rapid changes, with factors like energy transition, beneficial ownership transparency, contract disclosure, and the implementation of Nigeria’s Petroleum Industry Act (PIA) reshaping the landscape.

“Confronted with these realities, we adopted a strategic approach to strengthen NEITI as a more robust, independent, and globally respected transparency institution. Some of our key accomplishments include improving industry reporting and public disclosure.”

We will gather the most recent beneficial ownership information from the Corporate Affairs Commission (CAC) and share details about companies that are acquiring divested assets.

The reestablishment of the NEITI National Stakeholders Working Group (NSWG) has been achieved, featuring prominent leadership, with the Secretary to the Government of the Federation (SGF) serving as its sole chair.

This initiative has also bolstered partnerships with companies in the oil, gas, and mining sectors, leading to the revival and restructuring of the NEITI-Companies Forum to improve industry collaboration.

Furthermore, it has fostered stronger connections with Civil Society Organizations (CSOs) to empower citizens in monitoring activities and demanding accountability. With support from DFID-FOSTER, NEITI has formulated a detailed Five-Year Strategic Plan (2022–2026), which outlines its objectives, annual work plans, and budgetary allocations. As the completion of this plan approaches in 2026, he suggested an immediate review to maintain its continuity and relevance.

He recalled that the NEITI Data Centre Project was established to collect and automate data from the extractive industry. The goal of this initiative is to ensure that industry information is readily available and to adhere to the EITI 2023 standards for transparent disclosures. He pointed out that in May 2024, the Inter-Ministerial Task Team (IMTT), responsible for implementing NEITI’s report recommendations, was revitalized after a seven-year hiatus. He also highlighted that the team now comprises members at the Director level, enhancing their decision-making capabilities and policy execution.