Key highlights
- Nigeria’s GDP is at risk due to issues surrounding transparency and accountability in governance.
- There is a trust deficit in the country as Nigerians see the government as an oppressive machine.
- All public institutions need to look up to the Nigerian Extractives Industries Transparency Initiative (NEITI) to gain public trust and adopt transparency in operations.
The absence of transparency and accountability could make Nigeria lose up to 37% of its Gross Domestic Product (GDP) by 2030, if not tackled immediately. This was stated in the April 2023 Agora Policy Report. The report with the title: “Imperative of Strengthening Nigeria’s Transparency and Accountability Measures” looks at how the lack of transparency and accountability in governance has continued to hamper growth in the country.
The report identified corruption induced by the absence of transparency and accountability as the greatest and most troubling challenge to Nigeria’s ability to realize its huge development potential. A part of the report stated:
“Transparency and accountability are critical norms that define a democratic model of governance, with both having intrinsic as well as extrinsic values for the legitimacy and effectiveness of public governance.
“As Nigeria prepares for a new administration after its 7th electoral cycle in the Fourth Republic, it is important to highlight the importance of transparency and accountability as the cornerstone of a stable and effective social order that supports an effective and efficient administration, and to also propose approaches and instruments that will firmly root the country’s governance within the institutional and normative structure of transparency and accountability.”
According to the report, Nigeria has suffered from a battered economy, impoverishment of many people, corruption, mismanagement of funds, infrastructural decay, and worse of all, a lack of trust from the governed for many years.
The report highlighted the fact that many Nigerians have come to see the government as something distant from their interest. To them, the government is an oppressive machine that they would rather not have anything to do with.
What can be done
The report identified that the lack of transparency and accountability damages legitimate and effective governance and often leads to the possible collapse of democratic governance and sustainable development. So, to avoid these outcomes, the Nigerian governments at all levels should focus efforts on
- Communicating effectively to citizens all policies and programs promoting good governance, democracy, and sustained economic growth
- Communicating effectively, the expected challenges faced in the administration’s effort to deliver on its promises to mobilize citizens for remedial work.
- Building trust between the governed and the government, and beginning the process of collaborative partnership in the nation-building process
- Promoting good governance by allowing for accountability, transparency, and participation in all government processes.
NEITI as a case study on transparency
In the report, the Nigerian Extractives Industries Transparency Initiative (NEITI) was used as a reference point for other institutions in the country. This is because NEITI has increased the level of transparency in Nigeria’s oil, gas, and solid minerals sectors. A part of the report stated:
“Since its inception, NEITI has conducted several cycles of an audit covering oil and gas (1999-2020), solid minerals (2007-2020), and Fiscal Allocation and Statutory Disbursement (FASD) (1999-2011).
“These audits and the increasing revenue disclosure which has earned Nigeria over $740 billion from 1999-2020 and N680 billion from 2007-2020 in oil/gas and solid minerals, respectively, has understandably stoked citizens’ interest in extractive sector revenue management.
“The work of NEITI has opened a sector previously renowned for opacity. NEITI’s work has also resulted in the recovery of revenues of over $3 billion for the country and the introduction of several reforms in the still-strategic oil and gas sector.
“Despite these milestones, NEITI’s effectiveness is affected by delayed and/or non-implementation of recommendations as outlined in the reports and the agency’s lack of enforcement powers.”
What you should know
The report highlights some of NEITI’s products – Policy Brief, Quarterly Review, Occasional Paper, and public convening – which have brought diverse perspectives to debates and analyses, increased public awareness, and strengthened citizens’ engagement on transparency and accountability in extractive industry governance.
According to the report, the products have complemented NEITI’s oil/gas and solid minerals audit reports, inspiring further interest and public demand for reforms.
