NEITI Launches Beneficial Ownership Portal

Tuesday, December 12, 2019/  08:10PM / By Proshare News/Image Header Credit: EcoGraphics

To improve transparency in the extractive and mining sector of the economy,  the Nigerian Extractive Industry Transparency Initiative (NEITI) has launched a digital register of beneficial owners of mining licences in the country. NEITI's newly created Beneficial Ownership Portal has two sections: Oil & Gas and Solid Minerals. On opening any of each section, a list of beneficial owners of operating licences is displayed and clicking on any owner reveals the equity interest such entity or individual has in a particular mineral license as well as the beneficial size relative to total equity interest.

The Portals search criteria also allow enquirers to search by name, assets or beneficial owners. The new portal will create greater transparency in the industry allowing investors or interested parties to 'lift the veil' over companies or individuals who claim to own an equity interest in specific licenses.

With the federal government committed to diversifying the economy, the NEITI register is a major effort at cleaning up the industry and preparing it for additional domestic and foreign investment. Nigeria's top ten States by mineral production include Ogun State (16.49m metric tonnes), Kogi State (15.13m metric tonnes), Cross River (3.49m metric tonnes), Akwa Ibom (1.9m metric tonnes) and Abuja FCT (1.89m metric tonnes). The other States include Edo (1.71m metric tonnes), Sokoto (1.64m metric tonnes), Zamfara (1.56m metric tonnes), Ebonyi (1.49m metric tonnes) and Gombe(1.47m metric tonnes) (see table 1 below).

Table 1 Nigeria Mineral Production By State

Source: National Bureau of Statistics

Nigeria's top ten minerals by type include the following:

1.      Limestone

2.     Granite

3.     Laterite

4.     Clay

5.     Granite Dust

6.     Sand

7.     Granite Aggregates

8.     Shale

9.     Sapphire

10.  Coal

The NEITI Beneficial Ownership Portal would be a good beginning to understanding the mining ecosystem by asset size, equity ownership percent and ownership name. The next step would probably be to embark on a comprehensive mapping of the sector and creating a digital investor databank for quick and easy referencing of mineral type (see table 2 below), quantity (reserve) and corporate or individual investment interests. 

Table 2 Nigeria's Mineral Top Ten Mineral Resource Type By Production

Source: National Bureau of Statistics

Related News

1.      Nigeria Produced 55.81m Tonnes of Solid Minerals in 2018 - NBS

2.     Nigeria Produced 45.74m Tons of Solid Minerals in 2017 - NBS

3.     Nigeria Produced 43.49m Tons of Solid Minerals in 2016 - NBS

4.     NEITI: Nigeria Lost At Least $16bn To Non-Review Of 1993 PSCs

5.     Analysis of FAAC Disbursements in 2017 and Projections for 2018 - NEITI

6.     NEITI: Nigeria's Oil Revenues Plunged by 55% to $24.8b in 2015

7.     NEITI, EFCC Form Alliance to Target Firms Over Unremitted $11bn

8.     NEITI Publishes 2013 Solid Minerals Audit Report

9.     NEITI Publishes 2013 Oil & Gas Audit Report

10.  President Buhari Approves New Board For NEITI

11.   NEITI Says Reports That Nigeria Loses $8b Annually From Crude Swap Deal Is Inaccurate

12.  NEITI: Nigeria Loses $8bn Through Crude Oil Swaps

13.  First NEITI report gave impetus to PIB -Mrs. Zainab Ahmed, Exec Sec., NEITI.