Public Disclosure of Extractive Sector Information (NG0034)

Brief Description of Commitment: There have been commendable efforts in the extractive sector to enhance transparency and accountability. For instance, the National Oil Company, NNPC, has published monthly operational and financial statements since 2015, engaged with CSOs and citizens' groups and openly broadcasted bid opening rounds for new licenses. NNPC has also committed to and actively participated in the global processes including the OECD and the Extractives Industries Transparency Initiative (EITI) Commodity working group, working towards bringing further transparency to commodity trading by State Owned Enterprises globally. The Ministry of Mines and Steel launched the 'Road Map for the Growth and Development of the Nigerian Mining Industry' in September 2016 which identified some initiatives within the short, medium and long-term time-line which the Ministry can undertake to better position Nigeria's mining sector.

Despite these efforts, the extractive sector still has not fully delivered on developing and improving the wellbeing of the vast majority of citizens. The pace of reform has been slow and there is still widespread opacity in the industry which has allowed corruption to thrive. In the case of the oil and gas sector, deepening issues of under-assessment, underpayment and under-remittance/non-remittance of revenues due to government have limited what the government can deliver to improve the lives of citizens. A backlog of remedial actions, especially as identified by NEITI audit reports, to improve accountability across financial, processes and production has not been prioritized or implementation has been too slow leading to further leakage and loss in citizens' confidence.

A first step towards achieving transparent, broad-based and effective citizens' participation in the extractive sector is to publish contracts which are the fundamental documents that set out the terms of all investments and projects in the sector. Contract disclosure in the oil, gas and mining sector is increasingly a global norm with progress by governments, international financial institutions and the EITI making bold steps to disclose or require public disclosure. The Government of Nigeria has made several commitments to publish petroleum contracts including at the 2016 UK Anti-Corruption Summit where the President committed to working towards full implementation of the Open Contracting Standard, and the 7 Big Win's that commits to publishing all established fiscal rules and contracts within two to four years.

A growing number of companies with operations in Nigeria also have expressed support for contract disclosure, the majority of these companies have noted, however, that in their view the decision to publish contracts must be initiated and implemented by the government. Transparency and accountability remain the basis of a sound corporate governance regime. The OECD's position is that information disclosure and higher standards of accountability in SOEs, coupled with other governance reforms can contribute to improved efficiency and performance of SOEs. Best practice and global standards demand that information disclosure including both financial and non-financial data is essential for the government, so it can be an effective owner; oversight from the National Assembly; the media to raise awareness on SOE efficiency; and taxpayers and the general public to have a comprehensive picture of SOE performance. Transparency, driven by enhanced disclosures, constitutes a major component of an SOE's accountability to shareholders, potential investors and business partners, and an increasingly engaged civil society.

General Problem / Challenge Addressed by the Commitment: Recent years have seen intense debates between the government, the NASS and companies around issues like fiscal obligations and environmental liabilities. Contract transparency would establish an even playing eld of information and encourage better informed debates. Disclosing contracts, which to date remain shrouded in secrecy, could be another way to demonstrate the new way of doing business. Contract transparency could have deterred some of the poor oil deals struck in the past, such as the lopsided oil-forproduct swap deals which the current government swiftly canceled. Establishing this practice now would deter future lopsided deals, creating a strong anti-corruption legacy.

Specific OGP Issue(s) in Focus: This commitment will focus on civic participation and public accountability.

Rationale for the Commitment: Publishing contracts will reveal the terms of contracts entered by government with private companies and determine that the best interest of the public is maintained.

Main Objective: To promote/enhance citizens' engagement by increasing access to information on extractive sector revenue and production.

Anticipated Impact: This commitment will improve contracts terms and ensure that they are favorable to Nigeria.

Expected Outcomes | Milestones (Performance Indicators)

1. Public access to contracts, licenses, permits, payment to government and revenue stream to improve transparency, fiscal terms and positively impact public finances | Availability of platforms like open register of licenses and portal for publication of contracts and reports.

2. Enhance transparency and accountability in the contract, licensing, permits and increase citizens' demand for accountability in the extractive sector | Number of times the media utilize or cite information contained on the website for their reporting.

Planned Activities (Start Date - End Date | Expected Output(s) | Output Indicator(s))

1. Develop roadmap and/or frameworks for disclosure of contracts and licenses in the exploitation of oil, gas and minerals - (NEITI). (January 2023 December 2024 | Roadmap document and/or framework for publication of contracts. | 1. Number of Road-maps of contracts developed 2. Number of frameworks for publication of contracts developed)

2. To build a public register of contracts, licenses and agreements in the extractive sectors - (NUPRC, NEITI). (January 2023 - December 2024 | 1. Available online register of licenses issued in the Extractive Sector 2. Number of unique visitors who visit the website. | Number of weblinks to the online public register created)

3. Public consultation on process of developing public register of contracts, licenses and agreements in the extractive sectors- (CSOs). (January 2023 - December 2024 | Public input into the development of public register of contracts, licenses and agreements in the extractive sectors | Number of memos/ letters/ position papers/media articles produced by CSOs and the media)

Source(s) of Funding: Federal Government Budget and Donor Agencies

Action Plan Review

Commitment 4. Public disclosure of extractive sector contracts, licences, permits, and revenue streams