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The Nigeria Extractive Industries Transparency Initiative (NEITI) and the Nigerian National Petroleum Company Ltd (NNPC Ltd) have agreed to establish a technical committee aimed at enhancing governance in Nigeria’s extractive sector. This move follows a memorandum of understanding (MoU) signed by both parties for data exchange, training, and compliance with the Extractive Industries Transparency Initiative (EITI) Standard.
The agreement came after a meeting on Thursday in Abuja between Dr. Orji Ogbonnaya Orji, the Executive Secretary of NEITI, and Mr. Bayo Ojulari, the Group Chief Executive Officer (GCEO) of NNPC Ltd. The newly formed partnership is designed to address the remediation issues highlighted in previous NEITI reports, with the technical committee overseeing the implementation process.
The collaboration between NEITI and NNPC Ltd will also focus on mutual areas of cooperation, including training, manpower development, improving information technology systems, and creating frameworks to enhance operational efficiency within the sector. Dr. Orji commended Mr. Ojulari for his leadership and urged NNPC Ltd to model transparency, accountability, and efficiency in all its operations, positioning the company as a model of best practices in corporate governance.
“As Nigeria’s flagship national oil company, NNPC Ltd must embody values of transparency, accountability, and civic engagement to restore public trust and ensure it remains a respected institution globally,” Dr. Orji stated. He emphasized that the company must adapt to the changing landscape of Nigeria’s energy sector, driven by bold reforms and renewed investor confidence.
NEITI further highlighted its role in supporting NNPC Ltd’s transition to a limited liability company under the Petroleum Industry Act (PIA), which now requires the company to fully embrace global best practices in corporate governance. According to Dr. Orji, NNPC Ltd should aspire to compete with global giants like Saudi Aramco and Petronas, calling for urgent attention to domestic issues and multi-stakeholder consultations to boost Nigeria’s image and investor confidence.
The NEITI Executive Secretary also reminded NNPC Ltd of its responsibility as a voluntary member of the EITI, which carries the obligation to fully comply with EITI standards. Dr. Orji noted that global EITI has specifically raised concerns over NNPC Ltd’s public disclosures, urging the company to restore its commitment to transparency, including timely publication of financial statements and contract disclosures.
NEITI pointed out that while production data and audited accounts are still disclosed, critical reports have been irregular or delayed, leading to gaps in data and reduced accessibility. The agency called on NNPC Ltd to restore all discontinued disclosures and actively participate in NEITI audits, ensuring that remedial actions are diligently implemented.
