ABUJA, Nigeria (VOICE OF NAIJA)-The Nigeria Extractive Industries Transparency Initiative has cautioned that Nigeria risks losing substantial foreign investment in the oil, gas and mining industries if it records a poor outcome in the upcoming Extractive Industries Transparency Initiative validation exercise.
The warning was issued on Wednesday in Abuja by NEITI Executive Secretary, Musa Sarkin-Adar, during a stakeholder engagement with civil society organisations and media representatives ahead of Nigeria’s 2026 EITI Validation, scheduled to begin on July 1.
Sarkin-Adar described the validation as crucial to Nigeria’s standing among global investors, noting that transparency and accountability now play a major role in investment decisions worldwide.
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He said that despite Nigeria’s vast natural resources and status as one of Africa’s leading investment destinations, concerns about governance and transparency continue to influence investor confidence.
According to him, the engagement was an important part of the validation process, aimed at clarifying stakeholder responsibilities and improving Nigeria’s preparedness for what he described as a key assessment of transparency standards across the oil, gas and mining sectors.
“Most Nigerians are not fully aware of the functions and importance of NEITI. NEITI is an enabler for investment in the oil and gas and mining sectors because our assessments and reports help guide foreign investors who want to invest in Nigeria.
“Nigeria is an investment haven. Everybody wants to come and do business in Nigeria, and I believe it is more rewarding than many other places. However, scrutiny of investments all over the world matters, and that is what NEITI is there to guarantee and ensure.
“If Nigeria loses this process, investors, particularly foreign investors in the oil and gas and mining sectors, may decide not to come and invest in Nigeria. Countries like Guyana, Tanzania and others are increasingly attracting investments because of the standards they have established,” he said.
The NEITI boss also expressed concern over what he described as insufficient cooperation from several government institutions whose support is essential to the validation exercise.
He specifically cited agencies such as the Nigerian National Petroleum Company Limited, the Central Bank of Nigeria, the Revenue Mobilisation and Fiscal Commission, the Ministry of Finance and the Budget Office, accusing many of them of failing to respond promptly to official correspondence.
Sarkin-Adar noted that many stakeholders misunderstand NEITI’s mandate, often expecting it to function as a regulator rather than an institution focused on accountability and transparency.
“The fact that we are not a regulatory institution but an enabler and whistleblower is not well understood. If we choose to expose every issue publicly, many organisations would be uncomfortable. But our objective is to ensure that Nigeria remains respected globally and continues to attract investments.
“We are working towards making Nigeria richer through transparent and accountable governance of natural resources. That remains our mandate,” Sarkin-Adar added.
He further disclosed that previous NEITI audit reports revealed Nigeria was close to losing about $7bn due to companies failing to meet their financial obligations, adding that the forthcoming 2024–2025 audit report would contain additional significant findings.
According to him, he would recommend strict sanctions, including heavy penalties and possible blacklisting of defaulting firms.
“In previous audit reports, Nigeria almost lost about `$7bn because some companies failed to pay what they were supposed to pay. The upcoming audit report, which will be released soon, has already shown from preliminary findings that there are many issues that will require action.
“When the report is released, I will advise the government to take the necessary actions against all defaulting companies. Where necessary, penalties should be imposed in accordance with the law, and persistent offenders may even be prevented from doing business in this country,” he stated.
Sarkin-Adar also called on civil society organisations to step up advocacy for greater transparency in the recovery and utilisation of revenues identified through NEITI audits.
He observed that while NEITI frequently identifies outstanding payments and financial violations, the agency is often not updated on recoveries made by the relevant authorities.