Home Business Nigeria: EITI Raises Extractive Sector Transparency in Nigeria, Others With New Measures

Nigeria: EITI Raises Extractive Sector Transparency in Nigeria, Others With New Measures

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The global Extractive Industries Transparency Initiative (EITI) and Open Ownership (OO) have set up a ground-breaking, cross-sector partnership with anchor funding from the BHP Foundation, to end the use of anonymous companies linked to corruption and mismanagement in the extractive sectors of Nigeria and other signatory countries.

The new initiative which is termed, ‘Opening Extractives,’ aims to make a dramatic and sustainable difference to the level of publicly-available information on the ownership of extractive companies in order to eliminate corrupt acts that can divert extractive industry revenue away from local communities.

By extension, it would strengthen the Beneficial Ownership framework which Nigeria has signed to publicly disclose the identities of owners of extractive operations in the country.

In choosing to adopt the new measure, the EITI explained that anonymous companies remain a major obstacle in the fight against money laundering and corruption.

It stated that they also enable corrupt and criminal actors, often with close political connections, to hide behind chains of companies registered in multiple jurisdictions.

With its expected boost to the Beneficial Ownership framework, the EITI a more systematic approach to the analysis and publication of beneficial ownership data could be progressed and extended.

“Publishing details of company ownership enables effective taxation and brings data to light that can be used to identify and address corruption. It can help build fairer markets, encourage responsible investment and manage business risk,” said the EITI in a statement containing information on the new measure.