Extractive Sector Transparency (NG0003)
Action Plan: Nigeria National Action Plan 2017-2019
Action Plan Cycle: 2017
Lead Institution: Nigeria Extractive Industries Transparency Initiative (NEITI)
Support Institution(s): Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC), National Assembly (NASS), Ministry of Niger-Delta, Federal Ministry of Mines and Steel, Federal Ministry of Petroleum Resources, Department of Petroleum Resources (DPR), Nigeria Content Development Board (NCDB), Revenue Mobilization, Allocation and Fiscal Commission (RMAFC), Office of the Accountant General of the Federation (OAGF), Corporate Affairs Commission (CAC), Raw Mineral Research and Development Centre (RMRDC). Natural Resource Governance Institute (NRGI), Civil Society Legislative Advocacy Centre (CISLAC), Publish What You Pay, Budgit, Public and Private Development Centre, ANEEJ, Miners Association, African Centre for Leadership, Strategy & Development (Centre LSD), Institute of Chartered Accountants of Nigeria, PENGASSAN, NUPENG, Nigerian Union of Journalists, WANGONeT, Nigerian Labour Congress
Policy AreasAccess to Information, Anti-Corruption, Beneficial Ownership, E-Government, Extractive Industries, Fiscal Openness, Legislation & Regulation, Open Data, Private Sector, Public Participation, Public Procurement, Publication of Budget/Fiscal Information
Nigeria’s extractive industry has failed to deliver development and improve the well being of the vast majority of her citizens. The wide spread opacity in the industry has allowed corruption to thrive, thus, deepening issues of underassessment, underpayment and under-remittance/non-remittance of revenues due to government, thereby limiting what the government can deliver to improve the lives of citizens. A backlog of remedial actions to improve accountability across financial, processes and production has not been prioritized or implementation has been too slow leading to further leakage and loss in citizens’ confidence.
IRM Midterm Status Summary
3. Work together with all stakeholders to enhance transparency in the extractive sector through a concrete set of disclosures related to payments by companies and receipts by governments on all transactions across the sector’s value chain.
Language of the commitment as it appears in the action plan:
“Nigeria’s extractive industry has failed to deliver development and improve the well being of the vast majority of her citizens. The wide spread opacity in the industry has allowed corruption to thrive, thus, deepening issues of under-assessment, under-payment and under-remittance/non-remittance of revenues due to government, thereby limiting what the government can deliver to improve the lives of citizens. A backlog of remedial actions to improve accountability across financial, processes and production has been prioritized or implementation has been too slow leading to further leakage and loss in citizens’ confidence”.
3.1: Disclose oil, gas and mining contracts in the area of exploration and production, exports, off taking and swaps on a publicly accessible portal in both human and machine readable formats.
3.2: Quarterly disclosures by NNPC, its subsidiaries and PPMC of sale-level data on oil and gas sales.
3.3: Develop Beneficial ownership register for companies that hold exploration, production and export licenses and publish in publicly accessible formats that are human and machine readable.
3.4: Develop policy on custody transfer meters in the oil and gas sector.
3.5: Get all extractive sector companies to adopt Global Memorandum of Understanding as an approach to the CSR programmes.
3.6: Mandate all relevant players (government and private sector) to develop, disseminate and annually report on individual plans (including timelines) for treatment (clearing) of remediation plans (from the NEITI audits).
3.7: All key stakeholders responsible for remedial actions hold annual open briefing sessions for sector stakeholders and interested public (including CSOs).
Start Date: January 2017 End Date: June 2019
Action plan is available here:
Context and Objectives
This commitment seeks to increase access to information on extractive sector revenue and production, and enhance civic participation and accountability, including through technological innovation.
Petroleum (oil and gas) has dominated Nigeria’s extractives sector, with total revenue amounting to USD 17.055 billion in 2016 (65% of total revenue).  The Nigerian National Petroleum Corporation (NNPC) is the entity through which the Nigerian government regulates and participates in the petroleum industry.  The Products and Pipelines Marketing Company (PPMC) is a subsidiary of the NNPC and responsible for sourcing and distributing petroleum to all parts of Nigeria.  Since at least 2004, various reports have detailed NNPC’s acceptance of bribes and failure to remit the proceeds of crude oil sales to the government, with the missing funds amounting to billions of US dollars. 
Corruption and a lack of transparency have been addressed through Nigeria’s active participation in the Extractive Industries Transparency Initiative (EITI), a global initiative to promote transparency and accountability in the oil, gas, and mining sectors.  The Nigeria EITI claimed to have identified USD 9.8 billion owed to the federal government, of which USD 2.4 billion were recovered through its efforts.  In February 2019, the EITI Board validated Nigeria’s compliance with the EITI Standards, positioning Nigeria as the first anglophone country to have done so. 
This commitment is relevant to all four OGP values. Milestones 3.1, 3.2, and 3.3 are relevant to access to information; Milestone 3.6 relates to civic participation; Milestones 3.6 and 3.7 are relevant to public accountability as they incorporate a public-facing element to NEITI remediation plans;  and Milestones 3.1 and 3.3 address technology and innovation in support of transparency and accountability.
This commitment’s activities are verifiable. The objects of Milestones 3.1, 3.2, 3.3, 3.4, and 3.5 are identifiable: a portal disclosing oil, gas, and mining contracts; quarterly disclosures by the NNPC, etc.; a beneficial ownership register; a custody transfer policy; and extractive sector companies’ adoption of the Global Memorandum of Understanding. The relevant players in Milestones 3.6 and 3.7 are also identifiable, through the NEITI remediation plans.
Commitment 3 continues an already established initiative. The milestones support the NEITI, and in some instances, go beyond. For example, the 2016 EITI Standard encourages countries to disclose contracts;  Milestone 3.1 mandates disclosure on a publicly accessible portal. EITI countries were expected to disclose the value and volume of production data for the fiscal year covered by the EITI report;  Milestone 3.2 requires quarterly disclosures by the NNPC and PPMC. The EITI Standard recommends that implementing countries maintain a publicly available register of beneficial ownership in the extractives sector, and from 1 January 2020, beneficial ownership information must be included in the EITI report.  In December 2016, Nigeria published a detailed roadmap on how it intends to disclose beneficial ownership in the extractives sector, which included a commitment to a register that is machine readable and in open data format (same initiative Milestone 3.3 supports).  Milestone 3.5, which extends Shell Nigeria’s approach to local civic participation to the rest of the petroleum sector,  goes beyond EITI support of civic engagement. Milestone 3.4, on custody transfer meters (instruments that record fluid measurements in the sale of oil) was not covered by the EITI standard but relates to a long-standing policy issue in Nigeria referenced in the new Petroleum Industry Governance Bill, 2017. 
The NEITI’s work in transforming the culture of opacity that previously characterised the Nigerian petroleum sector has been recognized  and eight cycles of EITI audits have been completed.  The OGP commitments largely extended and consolidated existing EITI commitments.  Further, Ejiogu and others challenged the assumption that transparency in the form of enhanced information disclosure inevitably leads to reduced corruption and enhanced accountability.  Finally, according to Dauda Garba of the NEITI, parts of the commitment were too ambitious to be achieved in the stipulated timeframe. However, according to Sarah Muyonga (Nigeria Officer, Natural Resource Governance Institute), the expectation was that if fully implemented the commitment would advance greater transparency in the extractive sector, as disclosure of contracts would create some level of trust and also increase the level of competitiveness in procurement process . Kolawole Banwo (CISLAC) was also of the opinion that if implemented, the prospects of transforming the sector were high . Therefore, this commitment was preliminary coded as having a moderate impact.
The IRM researcher acknowledges the importance of this commitment to Nigeria’s revenue. Future commitments in this area could include elements such as focusing on the quality, instead of the quantity, of data disclosures. Information could be clear, meet the needs of NEITI’s data users, and attest to NEITI’s independence.
NG0015, 2019, Anti-Corruption
Implement Open Contracting and the Open Contracting Data Standard
NG0016, 2019, Access to Information
Transparent Tax Revenue Reporting
NG0017, 2019, Access to Information
Open Contracting and Licensing in Extractives
NG0018, 2019, Access to Information
Implement EITI Standard
NG0019, 2019, Anti-Corruption
Establish Beneficial Ownership Registry
NG0020, 2019, Access to Information
Strengthen Asset Recovery Legislation
NG0021, 2019, Anti-Corruption
Implement National Anti-Corruption Strategy
NG0022, 2019, Anti-Corruption
Improve Compliance with Freedom of Information Act with Focus on Records Management
NG0023, 2019, Access to Information
Improved Compliance with Mandatory Publication Provisions Requirement (FOIA)
NG0024, 2019, Access to Information
Implement Permanent Dialogue Mechanism
NG0025, 2019, Access to Justice
Aggregate Citizens' Feedback on Programs
NG0026, 2019, E-Government
Freedom of Association, Assembly, and Expression
NG0027, 2019, Civic Space
Enhance Participation of the Vulnerable
NG0028, 2019, Capacity Building
Implement New Computer Program in 6 Government Ministries to Improve Service Delivery
NG0029, 2019, Capacity Building
Legal Instrument to Strengthen SERVICOM
NG0030, 2019, Legislation & Regulation
Citizen Participation in Budget Cycle
NG0001, 2017, Access to Information
NG0002, 2017, Access to Information
Extractive Sector Transparency
NG0003, 2017, Access to Information
Tax Reporting Standards
NG0004, 2017, Fiscal Openness
World Bank Doing Business Index
NG0005, 2017, Fiscal Openness
Beneficial Ownership Register
NG0006, 2017, Anti-Corruption
Anti-Corruption Informationi Sharing
NG0007, 2017, Anti-Corruption
Asset Recovery Legislation
NG0008, 2017, Capacity Building
Anti-Corruption Activity Coordination
NG0009, 2017, Anti-Corruption
FOIA Compliance for Annual Reporting
NG0010, 2017, Access to Information
FOIA Compliance for Disclosure
NG0011, 2017, Access to Information
Permanent Dialogue Mechanism
NG0012, 2017, Fiscal Openness
Joint Governmnet-Civil Society Legislation Review
NG0013, 2017, Fiscal Openness
Technology-Based Citizens' Feedback
NG0014, 2017, E-Government