NEITI Launches Energy Transition Framework, Applauds NUPRC’s Licensing Efforts
The Nigeria Extractive Industries Transparency Initiative (NEITI) has introduced a new Energy Transition and Climate Accountability Framework, while also commending the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for its progress in recent licensing rounds.
In a statement released on Sunday, NEITI praised the NUPRC for its effective management of the 2022–2023 Mini Bid Round and the ongoing 2024 Licensing Round. The commendation follows NEITI’s independent monitoring of the pre-qualification and technical bidding processes—an oversight role mandated by the Petroleum Industry Act (PIA) 2021 and aligned with global EITI standards.
NEITI‘s newly released Advisory Report highlighted several positive developments in the licensing process, including improvements in transparency, inclusivity, and digitalization. Presented to the NEITI National Stakeholders Working Group (NSWG) during its May 9, 2025, meeting in Umuahia, Abia State, the report recognized the licensing rounds as key achievements in Nigeria’s upstream petroleum sector, intended to attract reliable investors and boost national development.
The report found the licensing process to be largely transparent, professional, and inclusive. It particularly applauded special provisions for indigenous and emerging companies, which enhanced public trust and participation.
However, NEITI also outlined areas that need improvement, such as:
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Strengthening evaluation criteria and scoring methods
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Increasing transparency in publishing bid results
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Improving public access to bidder information
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Requiring full disclosure of beneficial ownership
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Incorporating technical and commercial value assessments in bid evaluations
The report recommended practical steps to enhance future licensing rounds, emphasizing the importance of consistent stakeholder engagement and standardized disclosure practices.
Dr. Orji Ogbonnaya Orji, NEITI’s Executive Secretary, acknowledged NUPRC’s cooperation and urged the adoption of the report’s recommendations. “NEITI remains committed to promoting transparency, accountability, and sustainable growth within Nigeria’s extractive industries,” he said.
NEITI Adopts Climate Accountability Framework
Also during the Umuahia meeting, the NEITI Board formally adopted a wide-ranging Energy Transition and Climate Accountability Framework. This initiative aligns with Nigeria’s national energy transition goals, the Paris Agreement, the UN’s Sustainable Development Goals (SDGs), and the 2023 EITI Standard.
The framework outlines NEITI’s expanded role in the energy transition process and introduces a robust mechanism for:
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Tracking greenhouse gas emissions and climate-related financial risks
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Monitoring divestments by International Oil Companies (IOCs)
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Overseeing Host Community Development Trusts (HCDTs) as mandated by the PIA
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Promoting just energy transition planning and transparency in climate-related disclosures
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Aligning NEITI’s reporting with national climate strategies like the Nationally Determined Contributions (NDCs) and the Energy Transition Plan
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“This framework places Nigeria at the forefront of transparent, climate-responsible resource governance,” said Dr. Orji. “It reflects our commitment to ensuring that oil sector investments and divestments are accountable to host communities and the environment.”
To implement the framework, NEITI has laid out an action plan involving oil, gas, and solid minerals reporting, stakeholder engagement, institutional collaboration, and bi-annual performance reviews. The initiative is supported by the Ford Foundation, as part of NEITI’s broader research into how energy transition impacts Nigeria’s oil-reliant economy.
NEITI reaffirmed its commitment to driving reforms that align Nigeria’s resource governance with international sustainability goals while safeguarding environmental and social equity in the extractive sector.
