Stakeholders Advocate for Enhanced Transparency and Accountability in Nigeria’s Extractive Industry
In Abuja on Wednesday, stakeholders in Nigeria’s extractive industry called for improved transparency and fiscal accountability to reposition the sector. This appeal was made during a multi-stakeholder roundtable organized by Global Rights, themed “Promoting Transparency, Fiscal Accountability, and National Development in Nigeria’s Extractive Industry Governance.”
Abiodun Baiyewu, Executive Director of Global Rights, expressed optimism that a recent meeting would lead to dynamic and enduring partnerships crucial for fostering higher levels of participatory governance and building stronger fiscal regimes.
“Despite having over 40 minerals available in commercial quantities throughout the country, the solid mineral sector paradoxically contributes less than 1% to the national GDP,” Baiyewu noted. She emphasized that over 80% of this sector, particularly artisanal mining, remains unregulated, with its revenue unaccounted for.
“Mining host communities disproportionately suffer from the resource curse, gaining little to no benefit from the wealth extracted from their surroundings,” Baiyewu stated. “Amid the boom in the hydrocarbon sector and a faltering economy, the Nigerian government has turned its economic focus towards minerals and mining, recognizing their inherent potential.”
Baiyewu outlined the meeting’s aims: “Our goal for this dialogue is to reach a mutual agreement on the most effective ways for civil society to engage with NEITI and the National Assembly to enhance transparency and accountability in the solid mineral sector. We also seek to promote the rights of mining host communities and advance Nigeria’s implementation of the African Mining Vision (AMV) and the ECOWAS Mining Directive. The outcomes of our discussions will be made public to ensure broader awareness and involvement in achieving our shared goals.”
Dr. Orji Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), highlighted the importance of including women in the minerals and mining value chain. He emphasized this point during his opening remarks, stressing that the event, organized in partnership with NEITI, the Ford Foundation, and the Ministry of Solid Minerals Development, was focused on fiscal justice and inclusion as crucial components of ongoing reforms in the Solid Minerals Sector.
“For us at NEITI, it is imperative that our partner, Global Rights, places greater emphasis on gender equity and inclusion, particularly focusing on women’s inclusion,” Dr. Orji stated. He pointed out the global debate and advocacy surrounding women’s participation in the mining and steel sectors, noting the negative impacts of a male-dominated extractive industry, which restricts women’s access to employment, training, skill acquisition, investments, and management of natural resources.
The roundtable provided a platform to address various obstacles hindering women’s participation in the extractive sector. Dr. Orji identified key challenges, including fiscal justice, physical demands, safety concerns, cultural biases, and social abuses. He underscored the necessity of developing new standards that mandate the inclusion of fiscal justice and gender equality in decision-making processes. These standards should focus on policy reforms that ensure the public disclosure of data highlighting the specific social, economic, cultural, and environmental challenges faced by women and children in communities hosting oil, gas, and mining operations.
NEITI Audit Reveals Gender Disparities in Nigeria’s Extractive Industries
Dr. Orji Ogbonnaya Orji, Executive Secretary of the Nigeria Extractive Industries Transparency Initiative (NEITI), revealed that the latest audit of Nigeria’s oil, gas, and mining sectors shows significant gender disparities in employment. The audit found that employment opportunities for women in Nigeria are substantially below the global average.
The report surveyed 70 companies, of which 56 employed a total of 19,171 people. Of these, 15,639 (82%) were men, while only 3,532 (18%) were women. Dr. Orji also highlighted that women held fewer than 100 out of 2,325 top or high-level positions.
To address this disparity, NEITI is collaborating with global development partners, 57 EITI member countries, the media, and civil society to advance fiscal justice and gender equity in the extractive industries. Their joint efforts aim to enhance women’s participation in natural resource governance.
“NEITI has established a Women/Gender Desk to coordinate activities aimed at highlighting issues affecting women and children in the public consciousness,” Dr. Orji stated. He added that NEITI would support strategies developed at the conference to advance women’s inclusion.
Omololu Afilaka, the Alatorin of Atorin Ijesa, has emphasized the crucial role of natural resources in transforming economies, citing the rising global demand for these commodities. Speaking at a multi-stakeholder roundtable organized by Global Rights, the Alatorin noted that countries managing their natural resources prudently have witnessed significant economic growth and increased national income, making them focal points on the international stage.
Nigeria, he argued, has the potential to become the true giant of Africa not just in terms of population or military might but also in economic metrics like Gross Domestic Product (GDP), Gross National Product (GNP), and Gross National Income (GNI). “Mother Earth has endowed Nigeria with resources that could reduce poverty, spur economic development, and elevate our economy to enviable standards,” Oba Afilaka stated. He highlighted the vast array of natural resources found throughout Nigeria, from the oceanography of its continental shelf to its abundant solid minerals and natural gas.
Oba Afilaka called for a comprehensive review of Nigeria’s mineral map, noting that every state, from Abia to Zamfara, possesses commercially viable resources. “Akwa Ibom, Kaduna, and Bauchi, for instance, each have specific resources,” he said. However, he questioned whether these resources have been managed prudently and equitably and whether the revenue generated has helped mitigate social inequalities.
Drawing from his perspective as a community leader, Oba Afilaka shared insights into the mixed impact of Nigeria’s mineral wealth. He acknowledged the opportunities it presents for rural dwellers, such as purchasing vehicles and enjoying luxuries like palm wine, as well as benefiting from promises of community projects like boreholes, school renovations, and health center improvements by mining companies. These projects are often included in Community Development Agreements (CDAs) mandated by the Mining Act of 2007.
However, he also highlighted the adverse effects of resource exploitation, including increased insecurity, banditry, and terrorism driven by the scramble for resources. This has led to displacement and the rise of internally displaced persons (IDP) camps, evoking memories of the “blood diamonds” crises in Sierra Leone and Liberia. Environmental degradation, including polluted rivers and destroyed sacred shrines, further impoverishes host communities. Illegal but licensed mining, facilitated by compromised environmental impact assessments (EIAs), exacerbates these issues.
In conclusion, Oba Afilaka urged the Nigerian government to take concrete steps to manage the country’s resources better, reduce dependency on foreign economies, and foster patriotism, equity, and respect for the nation. By doing so, he believes Nigeria can harness its resources for the prosperity of all citizens, ensuring that the wealth benefits everyone, not just a privileged few.
