Poor transparency rating may scare investors away, NEITI warns

Nigeria faces a significant risk of deterring foreign investment in its vital oil, gas, and mining sectors if it fails to improve its transparency standards, the Nigeria Extractive Industries Transparency Initiative (NEITI) has warned. The country's performance in the upcoming 2026 EITI validation exercise is seen as critical to its reputation and attractiveness to international investors.

Musa Sarkin-Adar, Executive Secretary of NEITI, emphasized that transparency and accountability are now paramount considerations for global investment decisions. While Nigeria possesses abundant natural resources and is considered an attractive investment destination, persistent concerns over governance standards continue to erode investor confidence. The upcoming validation, scheduled to begin July 1, is a crucial assessment of Nigeria's commitment to these principles.

“

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.

Sarkin-Adar explained that NEITI's role is to guide foreign investors by providing reliable assessments and reports. "Most Nigerians are not fully aware of the functions and importance of NEITI," he stated, clarifying that the agency acts as an accountability and transparency institution, not a regulator. He noted that countries like Guyana and Tanzania are increasingly attracting investments due to their established transparency standards, underscoring the competitive landscape.

A significant challenge highlighted by Sarkin-Adar is the inadequate cooperation from several government institutions essential for the validation process. He lamented the slow response from key agencies, including the Nigerian National Petroleum Company Limited, the Central Bank of Nigeria, and the Ministry of Finance, to NEITI's correspondence. This lack of collaboration could jeopardize Nigeria's readiness for the critical assessment and potentially lead investors to seek opportunities elsewhere.

“

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.