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 review will assess Nigeria’s compliance with the 2023 EITI Standard, focusing on project-level reporting, beneficial ownership transparency, and systematic revenue reporting.
A strong outcome could boost investor confidence and revenue, while weak performance may raise governance concerns. NEITI’s audits have identified systemic weaknesses, including discrepancies in production volumes and royalty payments.
To address these issues, NEITI is pushing for legislative alignment and institutional strengthening. The proposed Extractive Industries Transparency Act would grant NEITI enforcement powers, require companies to publish activity reports, and impose penalties for non-compliance.
Transparency reforms can help combat illicit financial flows, which cost Nigeria billions annually. Multi-stakeholder coordination is crucial. A successful validation outcome would demonstrate Nigeria’s commitment to transparency and accountability, positioning its mining sector as globally competitive.
The proposed reforms aim to align Nigeria’s mining laws with international best practices and enhance NEITI’s authority.
The sector has significant growth potential, estimated to contribute up to 10% of GDP. To achieve this, policymakers must prioritize the passage of the Extractive Industries Transparency Act and support NEITI’s enforcement efforts.
The 2026 EITI review presents an opportunity for Nigeria to demonstrate its commitment to transparency and unlock the sector’s full potential.
