The Nigeria Extractive Industries Transparency Initiative (NEITI) recently announced that the oil and gas sector contributed $23.0456 billion to the country’s economy in 2021, making up a significant portion of the national revenue. Additionally, the solid minerals sector also saw growth, generating N193 billion in the same year, representing a 30% increase from the previous year.
Dr. Ogbonnaya Orji, the Executive Secretary of NEITI, shared these findings during the NEITI-Companies Forum Meeting in Lagos. He highlighted that the 2022-2023 NEITI oil, gas, and solid minerals audit report is in its final stages and will be released next month. Orji emphasized the importance of these sectors to the Nigerian economy and the need for continued transparency and compliance.
In 2021, the number of companies operating in the solid minerals sector increased from 1,200 to 1,214, showing a positive trend in industry participation and compliance. Despite this growth, Orji noted that there is still untapped potential in the sector that could further contribute to the Nigerian economy.
The NEITI 2021 reports also revealed increased disclosures in both sectors, with 94% of oil and gas companies and 87% of solid minerals companies fully compliant with NEITI’s reporting standards. Financial discrepancies were significantly reduced, indicating improved data reconciliation and transparency in the reports.
Orji commended the 207 oil, gas, and mining companies covered in the ongoing 2022-2023 industry reports for their cooperation and commitment to upholding the EITI standard in Nigeria. He urged these companies to continue supporting NEITI in providing necessary data and information for the upcoming reports.
The NEITI-Companies Forum meeting aimed to strengthen partnerships and engagement with industry stakeholders to sustain Nigeria’s membership in the global Extractive Industries Transparency Initiative (EITI). Companies were encouraged to actively participate in NEITI activities, engage with host communities, and promote the benefits of EITI.
Mr. Taiwo Olasupo, the South-west Zonal Representative on NEITI Board, emphasized the importance of collaboration between the government, citizens, and extractive industry companies in implementing EITI. He highlighted the NEITI-Companies Forum as a platform for dialogue, feedback, and partnership to improve the business environment in the oil, gas, and mining industries.
Overall, the NEITI-Companies Forum meeting underscored the significance of transparency, compliance, and cooperation in the extractive industries to maximize their contribution to the Nigerian economy. As the 2022-2023 industry reports near completion, continued support from industry stakeholders will be crucial in achieving the set targets and promoting sustainable growth in the sector.