The Nigeria Extractive Industries Transparency Initiative (NEITI) has introduced a comprehensive Energy Transition and Climate Accountability Framework aimed at repositioning the country’s extractive industries for climate-resilient governance and sustainable development.
Unveiled during the statutory meeting of the NEITI National Stakeholders Working Group (NSWG) held in Umuahia, Abia State, the framework aligns with Nigeria’s Energy Transition Plan , international climate obligations under the Paris Agreement , the Sustainable Development Goals (SDGs) , and the 2023 Extractive Industries Transparency Initiative (EITI) Standard .
In a statement signed by NEITI’s Executive Secretary, Orji Ogbonnaya Orji , the framework redefines NEITI’s role in energy transition by introducing transparent and accountable mechanisms to monitor climate-related risks and reforms across the oil, gas, and solid minerals sectors.
“This framework positions Nigeria at the forefront of climate-compliant resource governance,” Orji said. “It is our bold response to the urgent need for transparency in how oil investments and divestments impact host communities and the environment.”
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The initiative introduces mechanisms to track greenhouse gas emissions and climate-related financial risks , monitor divestments by international oil companies (IOCs) , oversee the implementation of host community development trusts as prescribed in the Petroleum Industry Act (PIA) , promote just transition planning , and ensure corporate climate disclosures . It also aligns NEITI’s industry reports with national instruments such as the Nationally Determined Contributions (NDCs) and the Energy Transition Plan .
To ensure effective implementation, NEITI has outlined key actions, including enhanced sectoral reporting, stakeholder engagement, inter-agency coordination, and biannual performance reviews. The framework is being developed with support from the Ford Foundation as part of an ongoing study on the impacts of the energy transition on Nigeria’s oil-dependent economy.
Orji reaffirmed NEITI’s commitment to leading reforms that balance global sustainability goals with Nigeria’s development priorities. “We will continue to ensure that resource governance promotes social and environmental justice across extractive communities,” he said.
NEITI Commends NUPRC for Progress in Licensing Rounds
At the same meeting, NEITI commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its progress in conducting the 2022–2023 Mini Bid Round and the ongoing 2024 Licensing Round . NEITI’s independent observation of these processes, conducted under its statutory mandate under the PIA and the global EITI framework , highlighted notable improvements in inclusivity, digitalisation, and procedural integrity.
A newly released advisory report from NEITI, presented to the NSWG, praised the NUPRC’s efforts, describing the licensing rounds as “significant milestones in Nigeria’s upstream petroleum sector.” The initiatives were lauded for attracting credible investors, unlocking hydrocarbon potential, and driving national development.
The report noted that the bidding processes were professional, transparent, and largely aligned with established criteria. Special recognition was given to concessions granted to indigenous and emerging firms , which enhanced public trust and stakeholder participation.
However, the report identified areas for improvement, including strengthening evaluation methodologies, enhancing transparency in results disclosure, improving public access to bidder information, ensuring full disclosure of beneficial ownership, and integrating technical and commercial assurance into bid assessments.
The report offered actionable recommendations to improve future licensing rounds, emphasizing standardized scoring, robust disclosure practices, and consistent engagement with civil society and industry players.
“The NSWG commended NUPRC’s cooperation with NEITI and encouraged the adoption of the recommendations outlined in the advisory,” Dr. Orji said. “We remain committed to working collaboratively with regulators, civil society, and industry stakeholders to institutionalize transparency, good governance, and sustainable development in Nigeria’s extractive industries.”
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