General problem/challenge addressed by the commitment

There is a lack of transparency prevalent in the sector, especially in the areas of accounting for resources derived from natural resources extraction and production, availability of information on licensing and disclosure of contract terms in the extractive industry. By implication, this poses several problems including under-assessment and subsequent under-payment of revenues and royalties due to government by companies in the sector. There is an even deeper problem of under/non-remittance of revenues/royalties to the treasury by government agencies.

Main Objective

To promote/enhance citizens’ engagement by increasing access to information on extractive sector revenue and production.

Specific OGP challenge addressed by commitment

A more transparent extractive industry will help to increase corporate accountability by the corporate stakeholders, increasing public integrity, more effective management of public resources by government and ultimately, create safer communities for the citizens to live and work in

Rationale for commitment

By fully implementing this commitment, Government will advance Transparency; Access to information; Public Accountability and Civic participation in the country in general, and in the extractive industry in particular

Expected Outcome/impact

1. Share of government’s earning from extractive industries that gets into the federation account, consolidated revenue fund, excess crude account, ecological fund, sovereign wealth fund, stabilization fund, dollar-denominated foreign accounts, etc., as well as full explanation from NNPC and other agencies of the use of revenues that do not get to the central treasury.

2. Level of transparency and competitiveness of any number of open competitive processes for allocation of extractive industry licenses, including bid terms, names of bidders, winning bid and full contract text

3. Establishment of a beneficial ownership register for companies that hold exploration, production and export/swap licenses in the extractive sector

4. Disclosure of contract information related to extractive sector

5. The response of government to complaints and enquiries received from citizens during bidding and acquisition of licenses

6. Level of participation in the creation of Community Development Agreement

7. Number of companies that adopt and implement GMoUs for CDA.

Performance Indicators

1. Proportion of MDAs’ policies and plans that reflects citizens’ views

2. Proportion of MDA budgets that reflects citizen’s views

3. Number of Citizens’ forums held in key service ministries and MDAs like transport, Power, BoF, FIRS, CAC, BPP, NEITI, etc

4. Number of Public hearings conducted in Parliament leading to possible amendment of laws

5. Number of Town hall meetings held leading to greater community participation