The Nigeria Extractive Industries Transparency Initiative (NEITI) and the Nigeria National Petroleum Company Ltd (NNPCL) is to set up a technical committee to enhance extractive sector governance in Nigeria.
This is to be preceded with a memorandum of Understanding (MoU) on data exchange, training and compliance to the EITI Standard.
This was the outcome of a meeting in Abuja this Thursday, between the Executive Secretary of NEITI, Dr Orji Ogbonnaya Orji and the Group Chief Executive Officer of the NNPC Ltd, Mr Bayo Ojulari.
The MoU will define the rules of engagement on addressing the various remediation issues highlighted in the NEITI Reports while the technical committee will drive implementation.
The MoU will also outline areas of mutual cooperation between NEITI and NNPC Ltd on training and manpower development, improvement of information technology (IT) systems and develop frameworks to enhance operational efficiency. The MoU will further outline modalities and frameworks for the partnership and collaboration on inter-agency partnership, managing information and data disclosures.
The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji while commending the NNPCL GCEO for the initiative urged the Management of the NNPCL to project the national oil company as a model of transparency, accountability, efficiency, civic engagement and compliant in the implementation of Extractive Industries Transparency Initiative principles.
According to Dr. Orji, “As Nigeria’s flagship national oil company, NNPC Limited must model these values in other to restore public trust and preserve NNPC Ltd as an enduring national institution. Individuals may come and go, but NNPC Ltd must remain strong, resilient, and respected as one of Nigeria’s greatest symbols of pride in the global extractive industry”.
The Executive Secretary continues, “Your assumption of office comes at a defining moment for Nigeria’s energy sector. A period marked by bold reforms, renewed investor confidence, and rising indigenous ownership that is reshaping the oil and gas landscape”.
NEITI pointed out that it worked closely with other stakeholders to support NNPC Ltd’s transition into a limited liability company under the Petroleum Industry Act which places on the NNPC Ltd a clear obligation to fully embrace global best practices in corporate governance.
NEITI therefore appeals to all stakeholders including government, industry, and civil society to work together to protect and strengthen NNPC Ltd to confront its challenges.
“The NNPC Ltd we envision should compete with the likes of Saudi Aramco, QatarEnergy, and Petronas. Achieving this requires urgent attention to domestic issues through multi-stakeholder consultations that foster consensus and practical solutions as failure to do so carries risks for Nigeria’s image and investor confidence. NEITI stands ready to facilitate such engagements when needed”, the Executive Secretary affirmed.
NEITI pointed out that the NNPC Ltd’s voluntary membership of the Extractive Industries Transparency Initiative (EITI) as a supporting company brings with it a unique responsibility to comply fully with the EITI Standard. NEITI informed the NNPC Ltd that the global EITI has specifically requested urgent attention to NNPC Ltd’s public disclosures as Nigeria prepares for its next Validation. According to NEITI, while production data and audited accounts are still disclosed, several critical publications have become irregular, delayed, or discontinued, creating gaps in time-series data and reducing accessibility.
NEITI therefore urged the NNPC Ltd to restore and sustain all discontinued disclosures on its platforms, actively participate in NEITI audits, sustain the commitment to contract transparency and beneficial ownership disclosures, timely publication of financial statements, regular attendance at multi-stakeholder meetings as well as diligent implementation of remedial actions. This will not only reinforce Nigeria’s leadership in transparency but also secure a stronger outcome in the upcoming EITI Validation while earning NNPC Ltd global recognition as a bold reform leader as it was recognised in the recent past.
“These are not bureaucratic hurdles, but governance safeguards that deepen accountability, attract sustainable investments, and secure Nigeria’s credibility in global energy markets”, Dr. Orji emphasised.
Dr. Orji also lauded the recent landmark achievements of the present administration and commended President Bola Ahmed Tinubu for the courageous reforms of the past two years in Nigeria’s oil and gas sector, many of which were championed by the NNPC Ltd.
These investments among other foreign direct investments of over USD 6 Billion which were all led by Nigerian indigenous companies has shifted control of more than 50% of oil production into Nigerian hands and boosting domestic revenue, jobs, and national pride.
The Transparency Agency also commended the Federal Government’s CNG initiative and the AKK Gas Project which have far-reaching implications for Nigeria’s energy security, gas availability, job creation, and inclusive growth.
NEITI stated that such inflows and progress are only possible in a stable, transparent, and accountable business environment that is anchored by a strong and competitive commercial initiative driven by the new NNPC Ltd.
The Executive Secretary congratulated the GCEO, Mr. Ojulari and his management on their well-deserved appointments and called for closer working relationship with the NNPCL anchored on openness, compliance, and sensitivity to multi-stakeholders concerns.
“Together, we can consolidate the historic gains by indigenous operators while sustaining the climate to attract top-tier global investors. This partnership is not just strategic, it is essential for job creation, domestic resource mobilisation, poverty reduction, and sustainable national growth.
“Mr. GCEO, NEITI stands ready to work hand-in-hand with you to achieve these noble goals. I am confident that under your leadership, NNPC Ltd will not only thrive and reform, but will also set the benchmark for corporate governance in Africa’s extractive sector”, the Executive Secretary stated.
The NNPC Ltd GCEO, Mr Bayo Ojulari while receiving the delegation from NEITI affirmed NNPC Ltd commitment to implementing the principles of transparency, accountability in the extractive sector and the transformation that comes with it.
“We in NNPC are working for Nigeria. That’s what we are here for, and that’s what’s slightly different from being in the private sector. Whatever we do is in the best interest of Nigeria. That’s our aspiration. So it’s quite impressive to see how NEITI has supported NNPC in building that credibility.
“Again, I want to charge that we will be asking for more. But in doing that, I want to give you my commitment to increase and deepen transparency and accountability. In terms of our full compliance to the whole NEITI principles and EITI global standards, you have my full commitments.
Mr. Ojulari continued, “We are determined to pursue this transformation. We are determined to work with all the key stakeholders to manage the issues. Based on our experiences, based on the trust that the president has put to us as professionals, we know how to do this. We can see the light and the path to achieving it. The question is, how do we surmount the hurdles that are on the way? And I would like to use this opportunity to crave your support as we navigate this transformation”.
The NNPC also designated the new Chief Compliance Officer, Mr Jejere to oversee NNPC-NEITI relations.
The courtesy call was attended by the entire top management teams of the two institutions. The Chief Finance Officer of the NNPC was officially assigned to serve as alternate on the NEITI Board in the absence of the GCEO to ensure effective NNPC- industry representation in NSWG meetings.
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