Extractive Industry Governance in Nigeria: A Critical Analysis of NEITI's Effectiveness in Promoting Transparency, Accountability and Citizen Participation

This thesis offers a critical analysis of the implementation of the International Extractive Industries Transparency Initiative (EITI) in Nigeria with a specific focus on the role of institutional factors and stakeholder interests. Nigeria’s vast natural resource wealth has paradoxically failed to translate into sustainable development, a phenomenon commonly referred to as the “Resource Curse.” Issues surrounding the governance and management of natural resource revenues in Nigeria have long been characterised by opacity, mismanagement, and limited accountability. EITI was launched in 1992 by a coalition of mining companies and international governmental organisations (IGOs) as a response to growing concerns about the negative impacts of the extractive industries in the Global South. It was adopted in Nigeria in 2007 as the Nigerian Extractive Industries Transparency Initiative (NEITI). This thesis conducts a comprehensive analysis of NEITI from an institutional theory approach, identifying and appraising the various institutional factors impacting NEITI effectiveness and explains how a limited understanding of the accountability concept hinders the achievement of effective good governance in Nigeria. The thesis offers an original understanding of the political and economic context in which NEITI emerged in Nigeria and what it set out to achieve. It analyses the mechanisms through which NEITI formally promotes transparency and accountability in the governance of the extractive industry. It investigates the construction, communication, and legitimacy of the information disclosed by NEITI. It critically assesses the compliance of NEITI with national legislation and the EITI guidelines on information disclosure. It offers ways in which NEITI can improve the governance of the Nigerian extractive sector. The study employs a qualitative research design, grounded in institutional theory, to explore the institutional limitations of NEITI and its impact on transparency and accountability in Nigeria’s resource governance framework. The primary data collection method was in-depth semi-structured interviews with key stakeholders, including representatives from civil society organisations (CSOs), government agencies, the extractive industry, EITI and NEITI itself. The analysis focused on identifying key institutional challenges and limitations, as well as understanding the role of power dynamics, path dependence, and compliance practices in shaping NEITI’s effectiveness. In addition to the interviews, the study also drew on a comprehensive review of existing literature, NEITI’s published reports, and relevant legal and policy documents. This combination of both primary and secondary data allowed for a holistic understanding of the challenges facing NEITI and provided empirical evidence that is both grounded in the lived experiences of stakeholders and supported by existing scholarly work. The findings reveal significant shortcomings in NEITI’s ability to deliver on its mandate, including a lack of enforcement powers, overly complex and inaccessible disclosures, and governance structures that disproportionately favour government and extractive industry interests. These limitations have eroded stakeholders' confidence and hindered meaningful public engagement. The study also reveals that despite NEITI’s alignment with the global transparency standards, NEITI’s structural design and operational practices reflect Nigeria's broader systematic issues of “institutional inertia” and “path dependence” where entrenched practices and power dynamics limit NEITI’s transformative potentials. The research concludes by arguing that NEITI has not been structured to effectively address the systematic issues underlying Nigeria’s resource governance challenges. The study emphasises the need for reforms that will enhance NEITI’s autonomy, simplify its reporting mechanism, and ensure more inclusive stakeholder representation to foster meaningful engagement. Also, this study highlights the urgency of aligning with global best practices to ensure NEITI’s effectiveness as a transparency and accountability mechanisms.