Tag: NEITI

Nigeria’s energy transition from hydrocarbon in 2060 may affect the over 100,000 direct jobs in the oil and gas industry, according to the Nigerian Extractive Industries Transparency Initiative (NEITI) yesterday.

The Executive Secretary, Dr. Orji Ogbonnaya Orji had said his speech at Abuja during the “Civil Society Organization/Media Roundtable A Framework For Engagements on Energy Transition Cost and Impacts for Non-state Actors”, said the transition will impact on jobs.

However, as reporters asked him how it would impact on jobs, the NEITI boss said, the 2022 oil and gas industry audit alone indicated that were 29,000 direct workers in the industry.

According to him, a consideration of those that were involved in the provision of goods and services in the industry could account for over 100,000 workers.

His words, “In the oil and gas industry, for instance, our last report in 2022 shows that, oil and gas industry alone shows that over 29,000 workers, direct jobs, are working in the oil and gas industry.

Direct jobs: When I mean direct jobs, I mean those who go to work every day on those facilities. Now, if you check the indirect jobs, those who provide support services to the industry, you could be thinking that the oil and gas industry may be accounting for over 100,000 jobs directly.”

Orji also described the oil and gas as the mainstay of the host communities and the government, which depends on it for revenue.

He said the global shift from fossil fuels to renewables is reshaping economies and societies everywhere. For Nigeria, said Orji, the transition is not optional; it is inevitable. 

Analyzing the challenges that would come with the transition, he said “it will Challenge our fiscal planning and revenue base.”

Orji said it will deepen energy poverty if not properly managed at a time when 86 million Nigerians still lack access to electricity.

He said however, the transition also provides an opening for innovation, diversification, and a repositioned economy.

He said NEITI approached the study not as a formality, but as an urgent national necessity since the transition must be confronted with evidence, foresight, and strategy. Orji said consequently, under the leadership of the National Stakeholders Working Group (NSWG) and with support from the Ford Foundation, NEITI commissioned the research.

According to him, the study is not taking place in isolation as it is firmly anchored in NEITI’s Policy on Climate Change, Energy Transition and Environmental Accountability, which was developed together with its civil society partners.

The policy, said Orji, commits NEITI to integrate climate and energy transition disclosures into its EITI reporting.

It also commits the organization to track emissions, stranded assets, and energy access gaps.

The policy, according to him, mandates NEITI to hold government and companies accountable for environmental justice and just transition commitments.

Meanwhile, the NSWG Alternate Chair, Ambassador Matthew Adole described the planned transition as risky to countries that are dependent on oil and gas for revenue, export, and energy consumption.

He said it was due to the recognition of the importance of the transition that the NSWG expressly approved the study to look into energy transition cost. 

Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Orji Ogbonnaya Orji, has challenged civil society organisations (CSOs) to step up their roles in ensuring accountability in Nigeria’s energy transition.

He urged CSOs to develop scorecards to track government and corporate commitments, as well as shape community transition plans that leave no one behind. Ogbonnaya Orji made the call during a courtesy visit to the Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, in Abuja.

Describing CISLAC as a strong voice for civic advocacy, governance reforms, and the protection of Nigeria’s democratic space, Ogbonnaya Orji stressed that CSOs must move beyond demanding contract and ownership disclosures to analysing risks, distilling lessons, and generating policy options for citizens.

He further highlighted the need for CSOs to play a greater role in resource mobilisation and fiscal justice, offering alternative perspectives on subsidy reforms, revenue generation, debt sustainability, and equitable development.

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The Executive Secretary also urged vigilance against illicit financial flows, the establishment of civic observatories, and stronger collaboration with investigative journalists, financial intelligence units, and international watchdogs.

According to him, NEITI has deliberately created institutional linkages to support CSOs. These include the reinvigoration of the Inter-Ministerial Task Team to follow up on audit recommendations, the strengthening of the Companies Forum to enhance dialogue among government, industry, and citizens, and the development of a Data Centre for real-time disclosures on revenues, contracts, ownership, host community funds, and energy transition.

He disclosed that the agency has signed Memoranda of Understanding (MoUs) with the EFCC, ICPC, and NFIU, while similar agreements are being concluded with the National Bureau of Statistics and the Nigerian National Petroleum Company (NNPC) Limited. Joint technical committees, he said, will drive the implementation of these agreements.

“These platforms are open windows for civil society to gain deeper access to partners in government and the extractive industries, and to leverage them in making civic work more visible and impactful,” Ogbonnaya Orji stated.

He urged CISLAC to work closely with NEITI in leading the civil society constituency on extractive governance and energy transition. “The time has come for CSOs to look inward and embrace a new agenda—one that elevates their role from monitoring NEITI to providing broader oversight of the extractive industries; from routine advocacy to knowledge leadership; from episodic interventions to structured impact,” he said.

While commending CISLAC’s regular bulletins for keeping the public informed, Ogbonnaya Orji challenged the organisation to transition into publishing peer-reviewed scholarly journals that will aid research, teaching, and learning, thereby institutionalising knowledge production and positioning Nigerian civil society for global thought leadership.

He emphasised that civil society has been the backbone of Nigeria’s EITI journey, but the future requires them to evolve from watchdogs to solution providers, from activists to knowledge leaders, and from observers to reform architects.

Ogbonnaya Orji reaffirmed NEITI’s commitment to an open civic space and pledged continued partnership with CISLAC and other CSOs to shape the next chapter of Nigeria’s extractive governance.

On the global stage, he noted that civil society organisations have proven indispensable in shaping governance outcomes, amplifying citizen voices, defending transparency norms, and catalysing reforms. Within the EITI, he said, CSOs remain the conscience of the process, ensuring that reforms translate into meaningful impact.

“As the world enters a new era defined by the energy transition, digitalisation, and fiscal pressures, the question is no longer whether civil society matters, but how it can redefine and strengthen its role to remain impactful in the years ahead,” he added.

The Nigeria Extractive Industries Transparency Initiative (NEITI) has hailed the influx of over $6 billion in Foreign Direct Investments (FDI) into Nigeria’s deepwater and gas projects, describing it as a major boost to the country’s energy sector.

Among the key investments are the Ubeta Gas Project, a $550 million investment projected to deliver 350 million scf/day by 2027; the $5 billion Bonga North Deepwater Project which will unlock 300 million barrels of reserves and adding 110,000 barrels/day production capacity and TotalEnergies’ $510 million divestment of a 12.5 per cent stake in OML 118 to Shell.

NEITI’s Executive Secretary/CEO, Orji Ogbonnaya Orji, gave the commendation during a courtesy visit to NNPC Ltd’s Group CEO, Bayo Ojulari, in Abuja. He noted that recent reforms by President Bola Tinubu’s administration—many spearheaded by NNPC Ltd—had reversed over 15 years of stagnation in oil and gas investments.

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He cited landmark transactions such as Oando Plc’s $783 million acquisition of NAOC from Eni (August 2024), Seplat Energy’s $1.2 billion purchase of ExxonMobil’s MPNU (December 2024), and the Renaissance Consortium’s $2.4 billion acquisition of Shell Petroleum Development Company (March 2025). According to him, these deals underscore a shift towards greater indigenous ownership, with Nigerian companies now controlling over 50per ecent of oil and gas production.

“This trend strengthens domestic resource mobilisation, curbs capital flight, creates jobs, and reinforces national pride and sovereignty,” Ogbonnaya Orji said.

He further applauded the Federal Government’s initiatives on the Compressed Natural Gas (CNG) Programme and the AKK Gas Pipeline Project, describing them as vital to energy security and employment generation.

Ogbonnaya Orji urged NNPC Ltd to sustain transparency, accountability, and efficiency while deepening collaboration with NEITI. He emphasized that Nigeria’s oil and gas gains could only be consolidated in a stable, competitive, and transparent operating environment.

“Together with civil society, industry, and government, we can consolidate indigenous leadership of Nigeria’s oil and gas sector while creating an enabling environment for global investors,” he said.

NEITI also pressed NNPC Ltd to restore critical disclosures—including audited financials, production data, and revenue reports—that have become irregular in recent years. Ogbonnaya Orji stressed that timely publication of such data was essential to Nigeria’s reputation as a global transparency leader, especially ahead of the country’s next EITI Validation.

To strengthen compliance, NEITI recommended the establishment of a dedicated EITI/NEITI Desk within NNPC Ltd, led by a senior officer with direct access to the Group CEO.

“NNPC must stand as a model of corporate governance—competing shoulder-to-shoulder with Saudi Aramco, QatarEnergy, and Petronas,” Ogbonnay Orji said. “Individuals will come and go, but NNPC Limited must endure as a global energy giant.” he added.

The Nigeria Extractive Industries Transparency Initiative (NEITI) has warned that unsustainable debt servicing at the state level is quietly eroding the fiscal capacity needed to deliver essential services, fund infrastructure, and reduce poverty.

In its latest Policy Brief, “Beyond Federal Allocations: The Cost of Borrowings and Debt Servicing at State Level in Nigeria,” NEITI described the situation as a “silent fiscal emergency” and urged states to embrace prudent borrowing, transparent debt management, and stronger fiscal discipline.

NEITI’s findings reveal that between 10 per cent and 30 per cent of monthly allocations from the Federation Account—largely derived from extractive revenues—are being deducted at source in many states to service debts, severely limiting grassroots development funding. Kaduna tops the 2024 list with 32.06 per cent deductions (N51.2bn from N159.7b), followed by Ogun (27per cent), Bauchi (26per cent), and Cross River (24%).

By contrast, low-debt states such as Borno (2.63%), Jigawa (2.74%), Benue (3.58%), and Nasarawa (3.82%) have preserved over 95percent of their allocations for direct investment through prudent fiscal management.

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The Policy Brief also warned about hidden liabilities in contractual obligations—such as Ogun’s ₦6bn and Ondo’s ₦7.73bn tied to PPP projects—cautioning that opaque terms could further erode fiscal space. Eighteen states, including Abia, Adamawa, and Akwa Ibom, reported zero contractual deductions, indicating more cautious borrowing practices.

NEITI also highlighted revenue distribution inequalities, noting that in 2024, Delta State’s N581.27bn allocation was five times Nasarawa’s N108.32bn, a gap that—when combined with high debt servicing—could deepen regional development disparities.

To address the crisis, NEITI recommends establishing State Debt Management Offices in all 36 states, mandatory real-time debt reporting and quarterly public disclosures, linking federal bailouts to improved internally generated revenue (IGR) and transparency, revising the revenue allocation formula to reduce disparities, and capping contractual deductions and publishing loan terms in full.

“This is not a name-and-shame exercise, but a mirror and a map,” said NEITI Executive Secretary, Orji Ogbonnaya Orji. “Debt, when managed well, can drive development. But when up to a third of revenues go into servicing obligations, it becomes a threat to public service delivery and economic stability.”

NEITI’s Policy Brief has been shared with the Presidency, National Assembly, National Economic Council, state governments, and finance commissioners, serving as both a warning and a blueprint for reform to avert a looming debt trap.

The Nigeria Extractive Industries Transparency Initiative (NEITI) is reinforcing transparency in the solid minerals sector by tracking surging royalty payments—N2.92 billion from gold, N540.7 million from tin, and N398.19 million from lithium—while linking these revenues to national development and community benefits.

This development comes as NEITI rolls out a bold reform agenda anchored on three strategic pillars: Data deployment to inform policy and guide national planning; inclusive policymaking that gives voice to host communities and vulnerable groups; and targeted reforms that establish clear divestment protocols, legal safeguards, and incentives for local beneficiation and industrialisation.

Executive Secretary of NEITI, Orji Ogbonnaya Orji, announced the new direction during the opening of the 4th National Extractive Dialogue (NED 2025) on Wednesday in Uyo, Akwa Ibom State.

This year’s theme, “Transitions, Divestments, and Critical Minerals: Charting a Just Future for Nigeria’s Extractive Sector,” calls for a paradigm shift toward justice, sustainability, and inclusive prosperity.

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Ogbonnaya Orji revealed that NEITI is conducting a comprehensive study on the impact of the global energy transition on Nigeria’s economy. The research will guide fiscal planning, protect livelihoods, and ensure alignment with the country’s Energy Transition Plan and Climate Change Act.

To support its transparency drive, NEITI has launched a Digital Data Center—a real-time, centralized platform for automated disclosures across the extractive sector. Describing it as NEITI’s “Digital Transparency Backbone,” Dr. Orji said the system will enhance regulatory oversight and public accountability.

“There can be no justice without data. No reform without records. No future without facts,” he declared.

He urged federal and state governments to integrate NEITI’s data into budgeting and planning processes, called on regulators to act on audit findings, and encouraged companies to lead with strong environmental, social, and governance (ESG) standards.

He also appealed to civil society to use NEITI data for constructive accountability and urged development partners to invest in innovation and capacity-building for greater transparency.

NEITI, he added, has adopted a new Energy Transition and Climate Accountability Framework, which mandates the agency to oversee oil and gas divestments, track greenhouse gas emissions, monitor Host Community Development Trusts, and publish biannual climate performance reports.

Ogbonnaya Orji’s proposed roadmap for a just transition includes: Leveraging real-time governance tools through NEITI’s Data Center; promoting inclusive dialogue with host communities, women, youth, and artisanal miners; and delivering concrete outcomes such as community safeguards and incentives for extractive-led industrial growth.

Also speaking at the forum, Executive Director of Spaces for Change and convener of NED 2025, Victoria Ohaeri-Ibezim urged a reimagining of extractive governance. “Nigeria cannot afford to stumble blindly into this new era. Not again,” she warned, stressing the need for bold regulatory reform, environmental justice, and community protection.

Chairman of the Senate Committee on Solid Minerals and representative of Akwa Ibom South, Ekong Sampson cautioned that resource-rich communities could be left behind again if extractive divestments are not properly regulated.

“The transition must be just—not just in rhetoric but in practice,” he said. Sampson called for legislative safeguards to prevent the transfer of environmental liabilities, ensure transparent operation of Host Community Trust Funds, and prepare Nigeria to responsibly harness its critical minerals, including lithium and cobalt.

Chairman of the House Committee on Solid Minerals, Gaza Gbefwi, stressed that Nigeria must position itself as a leader in the clean energy supply chain by tapping into its critical mineral reserves. He advocated for a Critical Minerals Development Bill, improved geological mapping, local value addition, and stronger community safeguards.

“Nigeria must be deliberate—not just in mining critical minerals but in governing them with justice and foresight,” he said.

Echoing similar concerns, Director General of the National Oil Spill Detection and Response Agency (NOSDRA), Engr. Chukwuemeka Woke warned that divested assets often come with environmental legacies, including decades of pollution and abandoned infrastructure. He called for stronger environmental regulation and deeper community engagement.

Representing the Oil Producers Trade Section (OPTS), Communications and Government Relations Manager, Lola Adelore, affirmed the organization’s commitment to transparency and sustainability. She described the dialogue as a platform for addressing legacy issues, supporting energy transition, and promoting inclusive development.

“As Nigeria navigates a new era of resource governance—from divestments to critical minerals—we are committed to a future built on openness, equity, and shared responsibility,” she said on behalf of OPTS Executive Director, Gwueke Ajaifia.

The Nigeria Extractive Industries Transparency Initiative (NEITI) has stated that a total revenue accrual to the Tertiary Education Trust Fund (TETFund) from Education Tax reached approximately N1.024 trillion in five years. This is according to the NEITI industry reports of the Nigeria extractive sector.

The Executive Secretary of NEITI, Orji Ogbonnaya Orji stated this in Abuja at the Memorandum of Understanding (MoU) signing ceremony between NEITI and TETFund. Ogbonnaya Orji stated that the MoU being signed is on information and data sharing which ensures that NEITI’s verified data will feed into TETFund’s strategic planning, revenue forecasting, and accountability framework.

“Under the MoU, NEITI will work with TETFund to ensure timely and prompt remittances through early deployment of evidence-based data.

NEITI will also provide real-time information on revenue accruals due to TETFund to guarantee transparency and support the Fund in tracking remittances and utilisation. Our joint effort will uplift educational institutions, enhance access to scholarships, and strengthen the research ecosystem across our public tertiary institutions,” he said.

Ogbonnaya Orji further emphasised that NEITI’s role will be to continuously support TETFund with timely, credible, and independently validated data on revenue accruals from the extractive sector. This support will enhance TETFund’s capacity to track what is due, what has been paid, and what is yet to be remitted, thereby promoting accountability and enabling proactive financial planning in the education sector.

On the accruals to TETFund from education taxes from the extractive sector, a breakdown of the revenues from the NEITI’s industry audit reports shows that: In 2022, the total revenue accruals to TETFund stood at N322.99b; In 2023, that figure rose significantly to N571.01b, the highest annual inflow to date, while between 2019 to 2021, NEITI audit data shows that total accruals to TETFund amounted to ₦644.19b, of which N624.32b was disbursed.

These disbursements highlight the centrality of the extractive sector in financing Nigeria’s tertiary education. “Today’s MoU connects the source and the application of public revenues. NEITI tracks and verifies what is paid. TETFund ensures that what is received is invested for impact. Together, we are creating a value chain of accountability—from extraction to education,” the Executive Secretary said.

The Executive Secretary stressed that over N1.024trillion that has accrued to TETFund in just five years must be fully accounted for, efficiently deployed, and transparently tracked. It must translate to modern libraries, functional laboratories, revitalised lecture halls, and cutting-edge research that meet the challenges of the 21st century.

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“With this MoU, NEITI and TETFund commit to a future of joint accountability, open data exchange, and measurable impact. This is not just a partnership between two institutions—it is a covenant with the Nigerian people. A promise to ensure that Nigeria’s natural resource wealth truly works for every citizen—especially through education,” Ogbonnaya Orji reinstated.

The Executive Secretary of TETFund, Arc. Sonny Echono, in his welcome remarks, stated that the MoU signing ceremony is a landmark event from the series of engagements between TETFund and NEITI. Echono explained that the MoU will enable TETFund and NEITI explore various avenues of ensuring accountability in the areas of tax accruals on education tax are duly remitted. He noted that this is to enable TETFund recover such funds to boost revenue for education development that promotes the agenda of President, Bola Ahmed Tinubu.

“The MoU will also define a framework that will enable us get accurate, credible, and up-to-date data that will culminate into a very firm agreement between the two agencies. Other key components of the MoU include improvement of revenue and efficiency in its collection,” Echono said.

The Permanent Secretary, Federal Ministry of Education, Abel Olumuyiwa Enitan, described the MoU signing as a welcome development and a foundation for sustainable growth in the education sector.

Enitan emphasised the Ministry’s support, highlighting the importance of transparency and NEITI’s vital role not just in signing, but also in implementing the agreement. He called for urgent need to recover extractive companies’ unremitted taxes for education development that will impact not only the present generation but also the future generations.