Call for Urgent Implementation of EITI Report Recommendations by Civil Society Organizations
Publish What You Pay (PWYP) Nigeria and the Community Outreach for Development and Welfare Advocacy (CODWA) have jointly issued a formal appeal to President Bola Tinubu, urging prompt action on the crucial recommendations outlined in the 2023 Extractive Industries Transparency Initiative (EITI) report.
As per the report released on November 30, EITI has determined that Nigeria attained a moderate score in implementing the 2019 EITI standard, averaging 72 points. This overall score was calculated based on three component scores encompassing stakeholder engagement, transparency, outcomes, and impact.
The report has underscored various corrective actions that must be undertaken, including industry and civil society engagement, MSG governance, contract and license allocations, license register, contracts, and beneficial ownership. Additionally, it has cautioned that a lack of progress in the aforementioned areas may result in temporary suspension during the next validation exercise.
In a statement issued on Tuesday, the civil society organizations articulated their concerns regarding the adverse effects of Nigeria’s current EITI ranking on the economy. They highlighted its impact on the nation’s ability to attract foreign investments in the oil, gas, and mining sectors.
The CSOs expressed, “Nigeria’s current EITI ranking represents a regression from the status achieved prior to the recent validation exercise. In 2019, Nigeria was appraised as making ‘Satisfactory Progress,’ the highest ranking attainable for member countries of the global EITI at that time.”
They continued, “This unfortunate decline in Nigeria’s global EITI ranking reflects weaknesses in institutions, stakeholder engagement, transparency, and accountability. These factors have detrimental implications for investor confidence and the growth of the extractive sector.”
The CSOs also emphasized the influence of the EITI validation report on investment decisions made by foreign investors, multilateral institutions, and development agencies. Nigeria’s relatively low score in the stakeholders’ engagement component, particularly among extractive companies, was identified as a factor impacting confidence in the EITI process and subsequent investment decisions.
Consequently, the CSOs have urged the Presidency and other relevant agencies to expeditiously implement the key recommendations and other reforms, with the aim of facilitating effective EITI implementation in Nigeria.
This appeal from the CSOs underscores the critical imperative to address the deficiencies identified in the EITI report, in order to enhance transparency, improve stakeholder engagement, and bolster investor confidence in Nigeria’s extractive industries. It serves as a reminder of the significance of adhering to global standards to ensure sustainable growth and development in the country’s natural resource sectors.
