NEITI - HEDA Resource Centre

HEDA Deepens Partnership with NEITI on Extractive Sector Transparency

As part of our sustained commitment to promoting accountability and environmental justice in Nigeria’s extractive sector, a delegation from Human and Environmental Development Agenda (HEDA Resource Centre) paid a courtesy visit to the Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya Orji, at the NEITI House in Abuja. Welcoming the HEDA team, Dr. Orji emphasized NEITI’s core mandate of fostering transparency and accountability in Nigeria’s extractive industries, stressing that active collaboration with accountability actors like HEDA is crucial to the success and credibility of the Extractive Industries Transparency Initiative (EITI) process in Nigeria. “We see HEDA as a major stakeholder and one of the leading civil society organizations supporting NEITI’s vision of reforming the extractive sector,” Dr. Orji remarked. He commended HEDA’s consistent investigative efforts, especially in critical areas such as marginal field awards, beneficial ownership disclosures, and host community impacts. Of particular note was HEDA’s recent publication: “Marginal Fields’ Awards, Regulators’ Independence, and Environmental Justice: Paradox of Beneficial Ownership and the Host Communities.” Dr. Orji applauded the report, describing it as timely and aligned with NEITI’s mission. He acknowledged the report’s findings on corruption risks associated with the 2020/2021 marginal field awards and the ongoing concerns around transparency in beneficial ownership—issues NEITI is currently addressing. “Your work provides valuable insights and data that reinforce our advocacy and reform efforts,” Dr. Orji stated. “We look forward to deepening collaboration with HEDA to meet the expectations of the EITI process in Nigeria.” Responding, HEDA Chairman, Mr. Olanrewaju Suraju, described NEITI as more than a partner, calling it a strategic institution capable of transforming Nigeria’s extractive governance landscape. He reiterated HEDA’s unwavering support for NEITI’s mandate and commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for integrating NEITI into its monitoring framework. Mr. Suraju noted that Nigeria’s extractive sector challenges go beyond poverty—they are rooted in systemic corruption, conflict, and the failure to enforce regulatory frameworks. He affirmed HEDA’s commitment to continue playing a watchdog role while working closely with institutions like NEITI to uphold transparency, integrity, and environmental justice. This visit marks another milestone in HEDA’s efforts to forge strong institutional partnerships aimed at reforming Nigeria’s extractive industry and ensuring that natural resources truly benefit the people.

June 10, 2025June 10, 2025 By Nurudeen Salako

HEDA Report Exposes Oil Licensing Flaws, Weak Regulations, Environmental Injustice

As part of its effort to ensure transparency and accountability in the Nigeria’s oil licensing bidding process, the Human and Environmental Development Agenda (HEDA Resource Centre) has exposed serious flaws in Nigeria’s oil licensing process, highlighting regulatory failures, financial misconduct, and environmental injustice in the Niger Delta. At the public presentation of its latest report in Ikeja, Lagos, HEDA revealed that several companies awarded marginal oil field licenses in the 2020/2021 bidding round lacked proper registration and failed to meet legal and financial requirements. The report, with the support from Africa Centre for Energy Policy (ACEP), titled “Marginal Fields’ Awards, Regulators’ Independence, and Environmental Injustice: Paradox of Beneficial Ownership and the Host Communities”, also raised concerns over the unchecked environmental damage caused by oil companies. Chairman, HEDA Resource Centre, Olanrewaju Suraju, condemned the awarding of contracts to unregistered companies, questioning the credibility of Nigeria’s oil sector regulations. “Out of approximately 38 companies, 18 are not even registered, and many have failed to file their annual returns. This is not about the supply of goods and services; we are talking about Nigeria’s main economic sector,” he said. He stressed that the failure to enforce due diligence had led to massive revenue losses for the country and called for collaboration between regulatory agencies such as the Corporate Affairs Commission (CAC), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Extractive Industries Transparency Initiative (NEITI). Beyond financial misconduct, Suraju warned that environmental pollution in the Niger Delta remains a pressing concern. He urged civil society, the diplomatic community, and international organisations to intervene, particularly as oil companies attempt to divest from Nigeria without fulfilling their environmental responsibilities. The Nigeria Extractive Industries Transparency Initiative (NEITI) Executive Secretary of NEITI, Dr. Ogbonnaya Orji, Dr. Ogbonnaya Orji, commended HEDA’s efforts in promoting transparency and accountability, reaffirming NEITI’s commitment to ensuring responsible resource management. “Beneficial ownership transparency is not just about knowing who owns what. It is about protecting our nation’s resources from corruption, illicit financial flows, and mismanagement. Host communities must be protected, compensated, and empowered.” Book Reviewer and Lecturer, University of Lagos, Prof. Dayo Ayoade, criticised the licensing process, describing it as compromised by political influence and corruption. “The 2020/2021 marginal fields bidding round exhibited procedural abuse and corrupt practices, leading to significant financial losses. Some of the winning companies were owned or backed by politically exposed persons,” he said. Ayoade added that 11 out of the 35 surveyed companies were inactive under the CAC, while several lacked the tax clearance certificates required for eligibility under the Public Procurement Act 2007. He further warned that oil companies seeking to exit Nigeria must first be held accountable for their environmental damage. “Before these companies are allowed to exit, they must remediate the damage done, pay compensation, and fulfill their decommissioning responsibilities.” You can download the report here

March 14, 2025 By Nurudeen Salako