NEITI raises committee on contract transparency in oil, gas sector

By Ambrose Nnaji

A Joint Inter-Agency Committee on the public disclosure of the contents of oil, gas and mining contracts have been set up by the Nigeria Extractive Industries Transparency Initiative (NEITI).

The contracts to be disclosed 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 Agreements, Production Sharing Contracts, Service Contracts and Sole- Risk Contracts. The disclosures would also cover contracts in the solid minerals sector amongst others.

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

Ogbonnaya 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 included; the Federal Ministry of Justice, Ministry of Petroleum Resources and the Nigerian National Petroleum Corporation (NNPC) Ltd. Other members are the Nigeria Upstream Petroleum Regulatory Commission and the Mining Cadastral Office. NEITI is expected to serve as the secretariat.

The 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.

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

The global Contract Transparency Network to be Chaired by Ogbonnaya Orji on behalf of Nigeria was comprised of the following countries; Indonesia, Philippines, Mexico, Armenia, Cameroun, Chad, Democratic Republic of Congo. Others are Ghana, Malawi, Guinea, Mongolia, Mozambique, Myanmar, Senegal, Sao tome e’ Principe, Togo, Zambia and Tanzania.

The executive secretary 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 4 years.

The Chairman of the NSWG, Mr 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 extractive industries transparency initiative (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 would be included in the NEITI 5year Strategic plan expected to be approved by the board at its on-going meeting in Lagos.