NEITI Commends NUPRC on Licensing Rounds, Launches Energy Transition and Climate Accountability Framework

The Nigeria Extractive Industries Transparency Initiative (NEITI) has lauded the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for notable achievements in the conduct of the 2022–2023 Mini Bid Round and the ongoing 2024 Licensing Round.

Following its independent observation of the pre-qualification and technical bidding processes, NEITI praised the NUPRC’s commitment to procedural integrity, transparency, and innovation in line with its mandate under the Petroleum Industry Act (PIA) 2021 and the global Extractive Industries Transparency Initiative (EITI) Standard.

A Milestone for Transparency and Investment

In its Advisory Report, presented to the NEITI National Stakeholders Working Group (NSWG) during its statutory meeting in Umuahia, Abia State on May 9, 2025, NEITI applauded the licensing rounds as major milestones aimed at attracting credible investments, unlocking hydrocarbon potential, and accelerating national development.

The report specifically highlighted improvements in:

• Inclusivity and stakeholder participation

• Digitalization of bidding processes

• Adherence to published criteria

NEITI noted that the process was largely professional and transparent. Special concessions to indigenous and emerging firms were described as progressive, helping to build public confidence and strengthen industry participation.

Recommendations for Future Licensing Rounds

Despite the positive assessment, NEITI’s report identified several key areas for improvement:

• Strengthening evaluation methodologies and scoring metrics

• Increasing transparency in the disclosure of bid outcomes

• Enhancing public access to bidder information

• Ensuring full disclosure of beneficial ownership

• Incorporating both technical and commercial value assurance in evaluations

“The NSWG commended NUPRC’s cooperation and encouraged swift adoption of the report’s recommendations,” stated Dr. Orji Ogbonnaya Orji, Executive Secretary of NEITI.
“We will continue working with all stakeholders to entrench transparency and sustainable development in Nigeria’s extractive industries.”

NEITI Adopts New Energy Transition & Climate Accountability Framework

At the same meeting, NEITI took a major step forward by adopting a new Energy Transition and Climate Accountability Framework. The framework aligns with Nigeria’s national energy transition plan, global climate commitments under the Paris Agreement, the SDGs, and the 2023 EITI Standard.

This groundbreaking policy outlines a transparent mechanism to:

• Track greenhouse gas emissions and climate-related financial risks

• Monitor divestments by International Oil Companies (IOCs)

• Oversee Host Community Development Trusts (HCDTs) implementation under the PIA

• Promote climate-related disclosures and just transition planning

• Integrate NEITI reporting with national instruments like the NDCs and Energy Transition Plan

“This framework is a bold response to climate accountability,” said Dr. Orji.
“It puts Nigeria at the forefront of climate-compliant resource governance, especially as it relates to oil divestments and their impact on host communities.”

Implementation Plan and Next Steps

To ensure effective implementation, NEITI has outlined a roadmap that includes:

• Bi-annual performance reviews

• Stakeholder engagement and institutional collaboration

• Sector-specific climate reporting in oil, gas, and solid minerals

• Integration of climate indicators into its annual audits and disclosures

Supported by the Ford Foundation, the framework forms part of NEITI’s broader study on how Nigeria’s oil-dependent economy can adapt to the energy transition.

“NEITI remains fully committed to leading reform efforts that marry good governance with environmental sustainability and social justice,” Dr. Orji affirmed.