By Dr Austin Maho
Nigeria’s mining sector is approaching a critical milestone with the 2026 validation under the Extractive Industries Transparency Initiative (EITI). The Nigeria Extractive Industries Transparency Initiative (NEITI) views this review as a test of governance credibility, measuring tangible improvements and stakeholder impact. The outcome will have far-reaching implications for the sector’s growth, transparency, and accountability.
The 2026 assessment will evaluate Nigeria against the 2023 EITI Standard, focusing on project-level reporting, beneficial ownership transparency, contract disclosure, and systematic revenue reporting. A strong outcome could boost investor confidence, attract foreign investment, and increase revenue for the country. On the other hand, weak performance may raise governance concerns, undermine investor trust, and limit access to international capital markets.
NEITI’s audits have identified systemic weaknesses, including discrepancies in production volumes and royalty payments, incomplete disclosures, and limited access to licensing data. These gaps expose the sector to revenue leakages, undermine regulatory coherence, and hinder the government’s ability to track extractive industry revenues effectively. To address these issues, NEITI is pushing for legislative alignment and institutional strengthening.
The proposed reforms aim to align Nigeria’s mining laws with international best practices and enhance NEITI’s authority. Key aspects of the proposed reforms include:
- Granting NEITI enforcement powers to ensure compliance with transparency requirements
- Mandating systematic disclosure of production, export, and payment data
- Requiring companies to disclose beneficial ownership information, including details of shareholders and controllers
- Ensuring public access to contracts, licenses, and agreements governing extractive industry operations
- Strengthening anti-money laundering and counter-financing of terrorism (AML/CFT) safeguards across the mineral value chain
The proposed new law, the Extractive Industries Transparency Act, seeks to codify these requirements and provide NEITI with the necessary enforcement powers. The law would require companies to publish reports on their activities, including payments made to government agencies, and provide for penalties for non-compliance.
Transparency reforms can also help combat illicit financial flows. Systematic disclosure of production and payment data can enable cross-verification and detection of leakages. According to NEITI, Nigeria loses billions of dollars annually to illicit financial flows, with the extractive sector being a significant contributor.
Multi-stakeholder coordination and government, industry, civil society collaboration are crucial to this approach. Existing contracts will remain binding, but companies must align with new statutory disclosure requirements. Regulators and operators may undertake harmonization to ensure consistency with transparency standards.
A successful validation outcome would demonstrate Nigeria’s commitment to transparency, revenue assurance, and enforcement capability. This would position Nigeria’s mining sector as structured, predictable, and globally competitive, with NEITI anchoring accountability. The sector has significant potential for growth, with estimates suggesting that it could contribute up to 10% of GDP.
However, achieving this vision requires urgent action from policymakers, industry stakeholders, and civil society. The government therefore must prioritize the passage of the Extractive Industries Transparency Act and provide NEITI with the necessary resources and support to enforce transparency requirements.
The 2026 EITI review presents an opportunity for Nigeria to demonstrate its commitment to transparency and accountability in the extractive sector. With the right reforms and enforcement mechanisms in place, Nigeria can unlock the full potential of its mining sector and ensure that the benefits of extractive industry activities are shared equitably among all Nigerians.