The term ‘resource extraction issuer’ is defined as an issuer of securities thatis(i)
required to file an annual report with the SEC; and(ii)
engages in the commercial development of oil, natural gas, orminerals.
As this provision also relates to payments made to foreign governments by asubsidiary or entity under the control of the issuer, the implication forNigeria is that all major payments made by IOCs whose parent companies areregarded as “issuers” or who are controlled by “issuers” to the Nigeriangovernment or its agencies to further the commercial development of oil,natural gas, or minerals would, after the issuance of the proposed final rules,be required to be included in the annual report of such companies to be filedwith SEC.This provision supports the Extractive Industries Transparency Initiative(EITI) which aims to strengthen governance by improving transparency andaccountability in the extractives sector.
In 2007, Nigeria enacted theNigerian Extractive Industry Transparency Initiative (NEITI) Act 2007 as asubset of the global EITI aimed at following due process and achievingtransparency in payments by Extractive Industry companies to governmentsand government linked entities and in the revenues received and reported bythose governments and entities.
In line with the objective of NEITI and the global EITI, the governmentthrough its oil and gas industry institutions and the NNPC is bound by theprinciples of the NEITI Act, 2007. Of particular relevance is one of thefunctions of the NEITI Act
i.e., to “disseminate by way of publication of records, report or otherwise any information concerning the revenue received
This automatically includes most of the major IOCs.
See the EITI website at http://eiti.org/eiti
See the NEITI Handbook on Transparency and Reform in the Oil, Gas and Solid Minerals Sector.