The federal government has launched an initiative called ‘Opening Extractive’ in Nigeria in its determination to unravel the secrecy surrounding ownership of companies and curb the high incidences of money laundering, revenue losses and illicit financial flows in the country.
‘Opening Extractives’ is a 5-year programme by the global Extractive Industries Transparency Initiative (EITI) to support 13 countries to implement reforms to disclose the ownership of extractive companies.
Minister of finance, budget and national planning, Mrs Zainab Ahmed, at the official launch of ‘Opening Extractives in Nigeria’ in Abuja, yesterday, said the government was determined to ensure openness in company ownership in Nigeria.
Represented by the minister of the state budget and national planning, Prince Clem Agba, Mrs Ahmed noted that Nigeria has taken concrete steps through the opening of a beneficial ownership register by the Nigeria Extractive Industries Transparency Initiatives (NEITI) and the amendment of the Companies and Allied Matters Act (CAMA).
She said: “Knowing the real owners of the companies that bid for, invest in and operate Nigeria’s extractive assets has practical implications for the economic growth, physical security and human development in our country. The federal government is aware and concerned that anonymous companies remain the major obstacle in the fight against money laundering and corruption.
“They enable corrupt and criminal actors, often with close political connections, to hide behind the chains of companies registered in multiple jurisdictions, to deny the Nigerian citizens of the benefits they should derive from their commonwealth.
“Government believes that access to quality beneficial ownership information and data has the capacity to strengthen accountability and transparency which will invariably improve governance of the energy and mining revenues, support businesses, curtail corruption, stop illicit financial flows and help light insecurity”, she added.
In his welcome remarks, the executive secretary of NEITI, Dr. Orji Ogbonnaya Orji, said that the agency would continue to work to ensure that the regime of ownership secrecy was brought down completely.
He however, noted it was important to underline that the campaign for beneficial ownership disclosure was not a zero-sum between government, society and business.
“This is because while governments and citizens benefit in the form of increased revenues and welfare, legitimate businesses also benefit from improved business climate, fair and open markets, level playing field, corporate accountability, increased profitability, return on investments, reduced reputational risks and improved trust and confidence between them and their host communities etc”, he stated.
According to Dr. Orji, hidden corporate ownership poses real and present danger to Nigeria’s collective developmental aspirations, especially in developing countries.
He said that is why governments and organisations in both developing and developed countries were coming together to strategise on how best to lift the veil of secrecy over the ownerships of the extractive assets of resource-rich countries. “I am glad to note that beneficial ownership transparency is now a global norm and Nigeria cannot afford to be let behind given our history and experiences in the fight against corruption.”
The chief executive, Nigeria Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, who endorsed the government’s effort at ensuring transparency in the sector, said the Commission has opened a beneficial ownership register for companies operating in the petroleum industry.
“The NUPRC is committed to collaborating on maintaining information on beneficial ownership, maintaining data on companies that own extractive licences, creating a better and healthy business climate. The result of these is that citizens will be aware of who they are doing business with or competing against and will also encourage appropriate stakeholder engagement which is a part of Nigeria’s Open Government Action Plan”, he added.
