RESOURCE RENT TO RICHES: EXPLORING NEITI OIL AND GAS AUDITS AND FINANCIAL SUSTAINABILITY IN NIGERIA, 2012 2020
Chenge & Ofuebe
Published in 2020; Volume:XXI No: 1 Article Number: 1

Abstract

<p class="MsoNormal" style="text-align:justify;mso-outline-level:1"><b style="mso-bidi-font-weight:normal"><span lang="EN-US">Abstract<o:p></o:p></span></b></p> <p class="MsoNormal" style="text-align:justify;mso-layout-grid-align:none; text-autospace:none"><span lang="EN-US" style="mso-fareast-font-family:Calibri; mso-fareast-theme-font:minor-latin">Sustained economic growth in resource rich countries is achieved with successful industrialization, normally braced with natural resource revenues. Natural resource revenues, to the extent they are appropriated by states, can relax common resource constraints to growth and pave way for rapid development. Despite the historically positive association of natural resource revenues to industrial growth in many advanced countries, the experience of less developed countries (LDCs) since the 1950s has largely shown prevalence of the resource curse phenomenon. NEITI was established as a voluntary multi-stakeholder initiative for the extractive industries</span><span lang="EN-US" style="background:white"> to address problems of the resource curse in Nigeria. The study </span><span lang="EN-US" style="mso-fareast-font-family: Calibri;mso-fareast-theme-font:minor-latin">aims to assess how NEITI oil and gas audits (OGAs) serve as instruments for transformation of resource rents to riches by ensuring that oil and gas revenues enhance financial sustainability in Nigeria.</span><span lang="EN-US"> The institutional theory was adopted as the theoretical underpinning for the study. The study used a documentary research design. Data for the research was obtained from secondary sources, mainly publications of NEITI &amp; other government agencies. </span><span lang="EN-US" style="mso-fareast-font-family:Calibri;mso-fareast-theme-font:minor-latin">Data analysis was done using descriptive statistics and content analysis.</span><span lang="EN-US"> The study revealed that </span><span lang="EN-US" style="mso-fareast-font-family: Calibri;mso-fareast-theme-font:minor-latin">NEITI OGAs are potent instruments in Nigeria’s public financial management. It established that NEITI OGAs have enhanced transparency but failed to enhance accountability. The study also showed that NEITI OGAs have not ensured financial sustainability in Nigeria. </span><span lang="EN-US">The study recommends the need for improved synergy between multi-stakeholder groups, civil society empowerment and prioritization of domestic economy over international accreditations, as new strategies for NEITI to enhance resource governance and financial sustainability in Nigeria.</span><span lang="EN-US" style="mso-fareast-font-family:Calibri;mso-fareast-theme-font:minor-latin"><o:p></o:p></span></p>

Keywords

Keywords: Development, Extractive Industry, Financial Sustainability, Growth, Natural Resource Rents, NEITI Audits, Oil and Gas Sector.
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University of Nigeria,
Nsukka.
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