The Nigeria Extractive Industries Transparency Initiative (NEITI) has warned that the country could lose significant foreign investment in its oil, gas, and mining sectors if it performs poorly in the upcoming Extractive Industries Transparency Initiative (EITI) validation exercise.
NEITI Executive Secretary, Musa Sarkin-Adar, issued the warning on Wednesday in Abuja during a stakeholder engagement session with civil society organisations and the media ahead of Nigeria’s 2026 EITI Validation scheduled for July 1.
He stressed that the validation exercise is critical to Nigeria’s global reputation, noting that transparency and accountability have become key determinants of investment decisions in the extractive industries.
Sarkin-Adar said Nigeria, despite its vast natural resources and status as one of Africa’s most attractive investment destinations, continues to face concerns around governance and transparency that affect investor confidence.
According to him, the engagement was necessary to clarify stakeholder roles and strengthen preparedness for what he described as a crucial assessment of Nigeria’s transparency standards in 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,” he said.
He warned that failure in the validation process could discourage foreign investors, adding that countries such as Guyana and Tanzania are increasingly attracting investments due to stronger governance standards.
Sarkin-Adar also expressed concern over what he described as poor cooperation from key government institutions required for the validation process, including the Nigerian National Petroleum Company Limited (NNPC Ltd), the Central Bank of Nigeria (CBN), the Revenue Mobilisation and Fiscal Commission, the Ministry of Finance, and the Budget Office.
He noted that delayed or absent responses from these agencies were slowing down NEITI’s work ahead of the assessment.
He clarified that NEITI is not a regulatory body but an accountability and transparency institution aimed at strengthening governance in the extractive sector.
“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,” he said.
Sarkin-Adar added that NEITI’s mandate is to ensure Nigeria remains attractive to investors through transparent management of natural resources.
He further disclosed that previous audit reports revealed Nigeria came close to losing about $7 billion due to unpaid obligations by some companies, warning that more findings would emerge in upcoming reports covering 2024–2025.
He said he would recommend strict penalties against defaulting companies, including sanctions and possible blacklisting where necessary.
“In previous audit reports, Nigeria almost lost about $7bn because some companies failed to pay what they were supposed to pay,” he stated.
Sarkin-Adar also called on civil society organisations to intensify advocacy for transparency in revenue recovery and utilisation, noting that NEITI is often not informed when outstanding funds identified in its audits are eventually recovered.
