The Nigeria Extractive Industries Transparency Initiative (NEITI) has introduced a new Energy Transition and Climate Accountability Framework. This new move is aimed at helping Nigeria manage its oil, gas, and solid minerals in a way that supports climate goals, ensures transparency, and protects the environment and local communities.
The framework was officially launched at a meeting of the NEITI National Stakeholders Working Group, which took place in Umuahia, Abia State. It is designed to support Nigeria’s Energy Transition Plan and to meet international obligations under the Paris Agreement, the Sustainable Development Goals (SDGs), and the 2023 Extractive Industries Transparency Initiative (EITI) Standard.
NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, said the framework will serve as a tool to check how Nigeria’s extractive industries are reacting to climate change. He explained that the new plan introduces a clear and transparent way to monitor climate-related risks, oil company exits, and reforms in the sector.
According to him, “This framework positions Nigeria ahead in climate-compliant governance. It is our strong response to the need for transparency, especially on how oil deals and divestments affect host communities and the environment.”
The framework includes several tools and actions. It will monitor greenhouse gas emissions, track how international oil companies leave the country’s oil sector, and oversee the proper use of Host Community Development Trusts, which are part of the Petroleum Industry Act (PIA). It will also promote the idea of a just energy transition and push companies to be more open about their environmental policies and practices.
To make sure the plan works well, NEITI has set out steps like better reporting in the sector, more talks with key stakeholders, improved teamwork between government agencies, and regular performance reviews every six months.
The Ford Foundation is supporting the development of this framework. The foundation is funding a study to look at how the move away from fossil fuels is affecting Nigeria’s economy, which depends heavily on oil.
Dr. Orji said NEITI will continue to lead reforms in the extractive sector by balancing the need for development with global climate goals. “We are committed to making sure that natural resource management promotes fairness and protects the environment.”
Also at the meeting in Umuahia, NEITI praised the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its efforts in the 2022–2023 Mini Bid Round and the ongoing 2024 Licensing Round.
NEITI had observed the early stages of these licensing rounds and said it noticed progress in making the process more open. NEITI’s report said the NUPRC had improved in areas like including more participants, using digital tools, and keeping the bidding process professional and clean.
The report described the bid rounds as important for growing Nigeria’s oil sector. It said the rounds were designed to attract serious investors, tap into more oil and gas reserves, and support national development. It also noted that indigenous and smaller oil companies were given a chance, a move that could help build public confidence in the process.
However, the report also pointed out areas that need to be improved. These include having clearer ways to judge the bids, more open results announcements, better access to information about who the bidders are, and making sure companies provide full details of their true owners. It also suggested stronger technical and financial checks on the bidding process.
NEITI shared several recommendations to make future licensing rounds better. These included a fair scoring system, full public disclosure, and constant engagement with civil society and industry stakeholders.
Dr. Orji said the Stakeholders Working Group thanked NUPRC for working with NEITI and advised them to follow the report’s recommendations. “We will continue to work together with regulators, civil society groups, and industry players to make Nigeria’s extractive industry more transparent and well-governed,” he added.
The Nigeria Extractive Industries Transparency Initiative (NEITI) has introduced a new Energy Transition and Climate Accountability Framework. This new move is aimed at helping Nigeria manage its oil, gas, and solid minerals in a way that supports climate goals, ensures transparency, and protects the environment and local communities.
The framework was officially launched at a meeting of the NEITI National Stakeholders Working Group, which took place in Umuahia, Abia State. It is designed to support Nigeria’s Energy Transition Plan and to meet international obligations under the Paris Agreement, the Sustainable Development Goals (SDGs), and the 2023 Extractive Industries Transparency Initiative (EITI) Standard.
NEITI’s Executive Secretary, Dr. Orji Ogbonnaya Orji, said the framework will serve as a tool to check how Nigeria’s extractive industries are reacting to climate change. He explained that the new plan introduces a clear and transparent way to monitor climate-related risks, oil company exits, and reforms in the sector.
According to him, “This framework positions Nigeria ahead in climate-compliant governance. It is our strong response to the need for transparency, especially on how oil deals and divestments affect host communities and the environment.”
The framework includes several tools and actions. It will monitor greenhouse gas emissions, track how international oil companies leave the country’s oil sector, and oversee the proper use of Host Community Development Trusts, which are part of the Petroleum Industry Act (PIA). It will also promote the idea of a just energy transition and push companies to be more open about their environmental policies and practices.
To make sure the plan works well, NEITI has set out steps like better reporting in the sector, more talks with key stakeholders, improved teamwork between government agencies, and regular performance reviews every six months.
The Ford Foundation is supporting the development of this framework. The foundation is funding a study to look at how the move away from fossil fuels is affecting Nigeria’s economy, which depends heavily on oil.
Dr. Orji said NEITI will continue to lead reforms in the extractive sector by balancing the need for development with global climate goals. “We are committed to making sure that natural resource management promotes fairness and protects the environment.”
Also at the meeting in Umuahia, NEITI praised the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its efforts in the 2022–2023 Mini Bid Round and the ongoing 2024 Licensing Round.
NEITI had observed the early stages of these licensing rounds and said it noticed progress in making the process more open. NEITI’s report said the NUPRC had improved in areas like including more participants, using digital tools, and keeping the bidding process professional and clean.
The report described the bid rounds as important for growing Nigeria’s oil sector. It said the rounds were designed to attract serious investors, tap into more oil and gas reserves, and support national development. It also noted that indigenous and smaller oil companies were given a chance, a move that could help build public confidence in the process.
However, the report also pointed out areas that need to be improved. These include having clearer ways to judge the bids, more open results announcements, better access to information about who the bidders are, and making sure companies provide full details of their true owners. It also suggested stronger technical and financial checks on the bidding process.
NEITI shared several recommendations to make future licensing rounds better. These included a fair scoring system, full public disclosure, and constant engagement with civil society and industry stakeholders.
Dr. Orji said the Stakeholders Working Group thanked NUPRC for working with NEITI and advised them to follow the report’s recommendations. “We will continue to work together with regulators, civil society groups, and industry players to make Nigeria’s extractive industry more transparent and well-governed,” he added.
