Blood Diamond Curriculum Guide (PDF) - Amnesty International USA

CASE STUDY OIL CONFLICT: NIGERIA
Nigeria
Extractive
Industries
Transparency
Initiative (NEITI)
It has long been suspected that corrupt government officials and oil company employees
have collaborated in the theft of oil revenues, amounting to approximately $232 million over a
five year period. To begin to combat the problems of missing revenue and corruption,
President Olusegun Obasanjo committed to EITI in November 2003, and launched Nigeria
EITI in February 2004. The NEITI process consists of three stages. The first audit is aimed at
reconciling information on payments and receipts. A second audit is focused on amounts of oil
and gas produced, lifted, lost, refined and exported. A third audit reviews the transparency
and appropriateness of the industry processes, and makes recommendations for
improvement.
In a November 2006 report, Nigeria Extractive Industries Transparency Initiative (NEITI)
disclosed that it has tracked most of the missing $232 million oil revenue between 1999 and
2004. It is now up to the Nigerian president to decide the best remedy for the situation. The
report alleges an almost total lack of transparency in the business practices of oil companies
operating in Nigeria. It goes on to suggest that figures have been intentionally tampered with
and that the Nigerian government should stop relying on oil companies for information on
levels of production. The report also chastises the Nigerian government for granting oil
companies “undue privileges.”
32