By Anthony Isaac, Abuja
The Nigeria Extractive Industries Transparency Initiative (NEITI) has commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its notable progress in the conduct of the 2022–2023 Mini Bid Round and the ongoing 2024 Licensing Round.
This commendation follows NEITI’s independent observation and monitoring of the pre-qualification and technical bid processes, in line with its statutory mandate under the Petroleum Industry Act (PIA) 2021 and the global Extractive Industries Transparency Initiative (EITI) Standard.
In an Advisory Report released by NEITI, the Commission’s efforts were praised for “notable improvements in inclusivity, digitalization, and procedural integrity.” The report was presented to the NEITI National Stakeholders Working Group (NSWG) at its statutory meeting held on May 9, 2025, in Umuahia, Abia State.
Describing the licensing rounds as “significant milestones in Nigeria’s upstream petroleum sector,” NEITI noted that the process is designed to attract credible investments, unlock hydrocarbon potential, and advance national development objectives.
The report highlighted that the licensing process was largely professional, transparent, and inclusive, with strict adherence to published criteria in line with the PIA and EITI provisions. Special concessions extended to indigenous and emerging companies were acknowledged as progressive, boosting stakeholder participation and public confidence.
However, the report also pointed out several areas requiring improvement: Strengthening evaluation methodologies and scoring metrics. Enhancing transparency in the disclosure of results, Improving public access to bidder information, Ensuring full disclosure of beneficial ownership, and Integrating technical and commercial value assurance in bid evaluations.
To address these gaps, NEITI offered actionable recommendations aimed at bolstering future licensing rounds, including the adoption of standardized scoring systems, enhanced disclosures, and continuous stakeholder engagement.
“The NSWG commended NUPRC’s collaboration with NEITI and encouraged the implementation of the report’s recommendations,” said Dr. Orji Ogbonnaya Orji, Executive Secretary of NEITI. “We remain committed to working closely with regulators, civil society, and industry players to institutionalize transparency, good governance, and sustainable development across Nigeria’s extractive industries.”
NEITI Adopts Energy Transition and Climate Accountability Framework
At the same meeting, the NEITI Board adopted a comprehensive Energy Transition and Climate Accountability Framework, developed in alignment with Nigeria’s national energy transition plan, global climate obligations under the Paris Agreement, the Sustainable Development Goals (SDGs), and the 2023 EITI Standard.
The new framework redefines NEITI’s role in the energy transition by introducing a transparent and accountable mechanism to: Track greenhouse gas emissions and climate-related financial risks; Monitor divestments by International Oil Companies (IOCs); Oversee implementation of Host Community Development Trusts (HCDTs) under the PIA; Promote just transition planning and climate-related disclosures and align NEITI’s reporting with national climate policies, including the Nationally Determined Contributions (NDCs) and the Energy Transition Plan.
“This framework positions Nigeria at the forefront of climate-compliant resource governance,” Dr. Orji said. “It is our bold response to the urgent need for transparency in how oil investments and divestments affect host communities and the environment.”
To operationalize this framework, NEITI has outlined implementation steps covering oil, gas, and solid minerals reporting; stakeholder engagement; institutional coordination; and bi-annual performance reviews. The initiative is being supported by the Ford Foundation as part of NEITI’s ongoing study on the impact of energy transition on Nigeria’s oil-dependent economy.
NEITI reaffirmed its commitment to leading reforms that align natural resource governance with global sustainability goals, while ensuring social and environmental justice across the nation’s extractive sectors.
