By Obiabin Onukwugha
Civic organisation, BudgIT Foundation, has called for reforms in Nigeria’s extractive sector in order to curb corruption.
According to BudgIT, corruption in the extractive industry has far-reaching consequences for host communities, undermining development and perpetuating cycles of poverty.
This is contained in a communiqué issued by the organisation at a one-day workshop for CSOs and the media on contract and Beneficial Ownership Transparent in Nigeria’s Oil and Gas Industry, in Port Harcourt, Rivers State, recently, which was supoorted by Oxfam.
The workshop aimed to build citizen-led movements for change in the Oil & Gas and Mining sectors, particularly within the Niger Delta region. It focused on two main issues: “Contract Transparency and Beneficial Ownership Transparency in the Mining and Oil and Gas Industries.”
The communiqué, endorsed by Budgit Foundation, Community Development Advocacy Foundation, CODAF
Community Empowerment Development Initiative, CEDI, Citizens Advancement Centre, NatureNews, Eifay Sis Dev, Citizens Voice Initiative, Pius Dukor Foundation, Abajitoru Women Development Initiative, Policy Alert, Light Hope Foundation, Get a Life Initiative, GADA, Akulga School Action, Relief Int’l Africa and Stakeholder Democracy Network, among others, recommended transparency of the Host Communities Development Trust (HCDT), and establishment of a dedicated agency for Host Community Development.
The communiqué emphasized the urgent reforms needed to enhance transparency and accountability, particularly regarding resource management for host communities.
At the end of the interactive sessions, the following observations and recommendations were made on the needs, gaps and progress of open contracting in the state:
It observed that the NUPRC and NNPCL, were yet to publish details of divestment contracts on their websites as provided by law, and that the NMDPRA is yet to publish on its website any contracts issued in the midstream and downstream sector.
“Disclosures of mining licences on the website of the mining and cadastre office (MCO) is yet to be backed by legislation making disclosures voluntary rather than mandatory. Contracts issued by host community development trusts in several cases are not published as required by law,” the communiqué read in part.
It continued: “Provisions in the Petroleum Industry Act 2021 that mandate the disclosure of contracts awarded by Host Communities Development Trust (HCDT) should be enforced where they do not exist currently. Disclosures should provide clear and accessible information about funding allocations, project implementations, and community engagement processes. Ensuring transparency in these operations is vital for the effective use of resources aimed at developing host communities.
“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should increase attention to the regulatory oversight of the Host Communities Development Trust. This should focus on the needs and rights of host communities, ensuring that development initiatives align with local priorities and that there is accountability for fund utilization.
“The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPCL) should include to the existing pool of contracts published on its website, details of divestment contracts by multinationals. Such transparency is critical for maintaining public trust and ensuring that all stakeholders are informed about changes that may impact community resources and welfare.
“The NUPRC should create a dedicated portal for disclosing oil and gas contacts, similar to the portal dedicated to publishing Beneficial Ownership. Civil Society Organizations have called for the creation of a Contract Transparency Portal (A one-stop portal for contracts)
“The NUPRC and the Mining and Cadastre Office (MCO) should develop and implement regulations for contract transparency to provide guidance for implementation and compliance in accordance with the relevant sections of their laws.
“We call on all stakeholders including government agencies, industry players, and civil society, to collaborate in making these changes a reality. Together we can combat corruption and ensure that the benefits of our natural resources are shared equitably.”