“Nigeria risks losing investors over poor transparency” — NEITI

The Nigerian Extractive Industries Transparency Initiative has warned that Nigeria risks losing significant foreign investment in its oil, gas, and mining sectors if the country records a poor performance in the forthcoming validation exercise of the Extractive Industries Transparency Initiative.

The warning was issued on Wednesday in Abuja by the Executive Secretary of NEITI, Musa Sarkin-Adar, during a stakeholder engagement session with civil society organisations and the media ahead of Nigeria’s 2026 EITI Validation scheduled to commence on 1 July.

Mr Sarkin-Adar said the exercise remains critical to Nigeria’s global investment profile, stressing that transparency and accountability have become decisive factors influencing international investment decisions.

According to him, despite Nigeria’s vast natural resource potential and strategic position as one of Africa’s leading investment destinations, concerns around governance standards continue to affect investor confidence.

He explained that the engagement was aimed at preparing stakeholders for the validation process by clarifying expectations, strengthening institutional readiness, and ensuring broad participation.

“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.

“Nigeria is an investment haven. Everybody wants to come and do business in Nigeria, and I believe it is more rewarding than many other places. However, scrutiny of investments all over the world matters, and that is what NEITI is there to guarantee and ensure.”

Concerns over investor confidence

Mr Sarkin-Adar warned that failure in the validation process could discourage foreign investors and shift capital toward countries with stronger transparency records.

“If Nigeria loses this process, investors, particularly foreign investors in the oil and gas and mining sectors, may decide not to come and invest in Nigeria. Countries like Guyana, Tanzania and others are increasingly attracting investments because of the standards they have established,” he stated.

He also expressed concern over what he described as weak institutional cooperation from agencies expected to support the validation exercise.

According to him, organisations including the Nigerian National Petroleum Company Limited, the Central Bank of Nigeria, the Revenue Mobilisation and Fiscal Commission, the Ministry of Finance, and the Budget Office often fail to respond promptly to official correspondence.

Mr Sarkin-Adar noted that NEITI’s accountability role is frequently misunderstood.

“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.

“But our objective is to ensure that Nigeria remains respected globally and continues to attract investments.”

Audit findings raise revenue concerns

The NEITI boss further disclosed that previous audit reports revealed Nigeria nearly lost about $7 billion due to unpaid financial obligations by companies operating in extractive industries.

He stated that preliminary findings from the upcoming 2024–2025 audit report indicate fresh concerns that may require government action.

“In previous audit reports, Nigeria almost lost about $7bn because some companies failed to pay what they were supposed to pay.

“The upcoming audit report, which will be released soon, has already shown from preliminary findings that there are many issues that will require action.”

Mr Sarkin-Adar advised government authorities to apply sanctions where necessary.

“When the report is released, I will advise the government to take the necessary actions against all defaulting companies. Where necessary, penalties should be imposed in accordance with the law, and persistent offenders may even be prevented from doing business in this country,” he said.

Call for greater accountability

Mr Sarkin-Adar also urged civil society organisations to intensify advocacy for transparency in the recovery and utilisation of revenues identified through NEITI audits.

He added that although the agency regularly identifies outstanding liabilities and financial irregularities, it is not always informed of recoveries made by responsible institutions.

He maintained that NEITI’s long-term objective remains ensuring transparent management of Nigeria’s natural resources while improving the country’s investment competitiveness.