NEITI Warns Poor Transparency May Deter Investors

The Nigeria Extractive Industries Transparency Initiative (NEITI) has issued a warning regarding the country's poor transparency ratings, which may deter foreign investors from the oil and gas sector. Musa Sarkin Adar, the Executive Secretary of NEITI, made this statement during a stakeholder engagement session in Abuja, ahead of Nigeria's 2026 Extractive Industries Transparency Initiative (EITI) validation scheduled to commence on July 1.

He criticized Nigeria's reputation among international investors, highlighting that while the country has abundant natural resources, its transparency standards continue to affect investor confidence. NEITI's previous audits revealed that Nigeria nearly lost approximately $7 billion due to companies failing to meet financial obligations.

The upcoming 2024-2025 audit report is expected to contain significant revelations and may lead to heavy penalties and potential blacklisting of defaulting companies. Sarkin Adar urged civil society organizations to advocate for greater transparency and accountability in the management of Nigeria's natural resources.