Business & Economy - News - Oil & Gas - December 2, 2021

NEITI constitutes joint committee on contract transparency in oil, gas, mining sectors

MEDIATRACNET

The Nigeria Extractive Industries Transparency Initiative (NEITI) on Thursday announced the constitution of a Joint inter-agency committee on public disclosure of the contents of oil, gas, and mining contracts.

The constitution of the committee was announced by the Executive Secretary of NEITI, Orji Ogbonnaya Orji, in Lagos at a special training on Contract Transparency for members of the NEITI National Stakeholders Working Group (NSWG).

Orji said details of the contracts to be made public include the terms and conditions set out in the contracts for exploration and exploitation of Nigeria’s oil and gas assets under the Joint Operating Agreement (JOAs), Production Sharing Contracts (PSCs), Service Contracts (SCs) and Sole-Risk Contracts.

The disclosures, he said, would also cover contracts in the solid minerals sector of the Nigerian economy, amongst others.

Orji explained that the joint committee was carefully drawn from relevant government agencies with direct responsibilities on managing Nigeria’s interests in various funding arrangements in the sector governed by contractual obligations.

The agencies, which make up the membership of the committee, include the Federal Ministry of Justice, Ministry of Petroleum Resources, and the Nigerian National Petroleum Company (NNPC) Limited.

Other members are the Nigeria Upstream Petroleum Regulatory Commission and the Mining Cadastral Office, while NEITI is expected to serve as the secretariat.

The NEITI Executive Secretary added that the Joint Inter-Agency Committee on Contract Transparency was also expected to develop a National Roadmap and a work-plan for the implementation of contract disclosure in the oil, gas, and mining industries.

Orji announced that all was now set for Nigeria to assume the leadership of the global Contract Transparency Network comprising 20 member countries with effect from January 2022.

The global Contract Transparency Network to be Chaired by the Executive Secretary of NEITI, Orji Ogbonnaya Orji, on behalf of Nigeria, comprises of Indonesia, Philippines, Mexico, Armenia, Cameroun, Chad, Democratic Republic of Congo, Ghana, Malawi, Guinea, Mongolia, Mozambique, Myanmar, Senegal, Sao Tome & Principe, Togo, Zambia, and Tanzania.

The NEITI Executive Secretary said he would be taking over from Alexandria Walls of Mexico who has led the global body from inception in 2018. Nigeria’s tenure as the Chair of the network is for four years.

The Chairman of the NSWG, Olusegun Adekunle, reaffirmed the commitment of the NEITI Board to provide the leadership and strategic direction required by the agency to implement contract transparency disclosures and other EITI emerging issues.

He expressed delight that the joint inter-agency committee was already working to develop a National Roadmap and gave the assurance that it will be included in the NEITI 5year Strategic plan expected to be approved by the Board at its ongoing meeting in Lagos.

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