Category archives for: Energy

South Africa: No Nuclear Energy Option – for Now At Least

analysisBy Hartmut Winkler, University of Johannesburg

A South African court has ruled that critical aspects of the country’s nuclear procurement process are illegal and unconstitutional. The outcome is a significant setback for a network of entities that had been aggressively promoting a 9.6 GW nuclear expansion programme in the face of popular opposition.

Over the past four weeks controversy over the proposed nuclear build has reached new highs. This was sparked by a major cabinet reshuffle in which President Jacob Zuma ousted both his finance and energy ministers, replacing them with individuals regarded as pro-nuclear.

The reshuffle prompted some of the largest and most diverse street protests since the dawn of the country’s democracy in 1994. While many factors contributed to the outpouring of public anger against the president, the nuclear question was a common motif in the protests.

Opposition to the nuclear expansion programme centred on two points: the first was its prohibitive costs – some estimates put it at R 1 trillion which is roughly equivalent to the government’s total annual tax revenue.

The second is that it has become contaminated by allegations of corruption, with evidence pointing to politically connected groups and individuals benefiting handsomely from it.

Back to the drawing board

The court’s ruling in effect means that the planners will have to go back to the drawing board.

The case in the Western Cape High Court was brought by two civil society organisations, Earthlife Africa and the Southern African Faith Communities’ Environmental Institute (SAFCEI).

The most far reaching aspects of the judgment were that it overturned ministerial proclamations made in 2013 and 2016 that enabled the development of 9.6 GW of nuclear power. It furthermore invalidated the intergovernmental nuclear collaboration agreements South Africa had signed with Russia, the US and South Korea.

The court’s ruling on the promulgations was damning and unambiguous.

South Africa’s Electricity Regulation Act requires the Minister of Energy to promulgate any energy generating capacity expansion through the National Energy Regulator of South Africa (NERSA). The regulator is required to vet the proclamation to ensure that it is in the public interest.

The Minister of Energy issued two promulgations to establish 9.6 GW of nuclear energy generation. The first one was concluded in 2013 but only made public two years later. The second one, which delegated the nuclear procurement to the state electricity utility Eskom, whose leadership is strongly pro-nuclear, was hurriedly and stealthily implemented in 2016 on the eve of the first sitting of Western Cape High Court on the matter.

Neither of these proclamations allowed a public participation process.

The court ruled that both promulgations were illegal and unconstitutional. It found that the regulator had failed to carry out its mandate because it had endorsed the minister’s directives uncritically and hurriedly. In doing so it had not allowed public input nor had it considered the necessity of the nuclear build or the consequences of its delegation to Eskom.

The court was equally clear on the collaboration agreements. Unlike the relatively vague agreements concluded with the US and South Korea, the Russian agreement had a great deal more detail in it. It specifically committed South Africa to build nuclear power plants using Russian technology, set out a timeframe and placed specific liabilities on South Africa.

South Africa’s constitution stipulates that international agreements that will have a substantive impact on the country must be approved by parliament. The agreement with Russia clearly falls into this category and therefore needed to be submitted to parliament for debate and approval.

The judge was unequivocal that by slipping the Russian agreement through parliament as a routine matter for noting, the former Energy Minister Joemat-Petterssen had committed a gross error. In his judgment he said:

It follows that the Minister’s decision to table the agreement in terms of section 231(3) was, at the very least, irrational. At best the minister appears to have either failed to apply her mind to the requirements of sec 231(2) in relation to the contents of the Russian IGA or at worst to have deliberately bypassed its provisions for an ulterior and unlawful purpose.

This could open the door for further action against the minister as well as Zuma, who, according to the court papers, instructed her to sign the Russian agreement.

The US agreement was concluded in 1995 and the South Korean agreement in 2010. But they were only presented to parliament in 2015. The court declared them invalid in view of the inexplicable time delay.

The medium and long term impact

A judicial appeal is widely expected. But it’s unlikely that the government will succeed in overturning the essence of the judgement. And an appeals process will delay any legitimate future nuclear power procurement.

Any attempt to re-initiate a nuclear build would have to start from scratch. Based on the judgement it can safely be assumed that the regulator can only endorse nuclear expansion if it can demonstrate that it’s necessary and that it’s a better solution to any other energy option.

But given the prevalent suspicion around the nuclear expansion, the regulator will be hard pressed to show that the nuclear option is in the public interest.

It is therefore unlikely that any nuclear development will succeed in the foreseeable future.

Disclosure statement

Hartmut Winkler receives funding from the NRF. He is a member of Save South Africa and OUTA, but writes this piece in his personal capacity.

South Africa: Court Ruling On Zuma’s Nuclear Deal Is a Marker of South Africa’s Political Health

analysisBy David Fig, University of Cape Town

The South African government’s plan to bulldoze through a nuclear energy deal has been dealt what might be a fatal blow by the Cape Town High court which has declared the plan invalid. It found that the government had not followed due process in making the decision to pursue a nuclear power option, as well as in other critical areas.

The court’s decision has put paid to President Jacob Zuma’s hopes of clinching the nuclear build programme before leaving office in 2019 if he completes his term.

The case was brought to court by Earthlife Africa and the Southern Africa Faith-Communities’ Environmental Institute. The two NGOs were challenging the way in which the state determined the country’s nuclear power needs. The plan would have seen South Africa purchasing 9,600 megawatts of extra nuclear power.

The judge, Lee Bozalek, ruled the government’s action unconstitutional and found that five decisions it had taken were illegal. These included the government’s decision to go ahead with the nuclear build and the fact that it had handed over the procurement process to the state utility Eskom. The court also ruled that Eskom’s request for information from nuclear vendors, a step taken to prepare the procurement, which ended on 28 April 2017 was invalid.

If it still wants to pursue the nuclear deal the government will have to start all over again. To do so legally it would have to open up the process to detailed public scrutiny. The country’s electricity regulator would have to have a series of public hearings before endorsing what would be its highest ever spend on infrastructure. And any international agreements would have to be scrutinised by parliament.

All this will take time – something Zuma doesn’t have. And it’s unlikely that his successors will be as eager to champion a new deal as he has been. Meanwhile the facts about the deal will become public. This will undoubtedly demonstrate two of the biggest criticisms of the deal to be true: that the country can’t afford it, and that it’s energy needs have shrunk, making the vast investment redundant.

The court’s ruling has turned the nuclear procurement issue into one of the key markers of South Africa’s political health. It’s not yet clear whether the South African government will appeal the Western Cape High Court’s decision, or comply with the judgement. A third option is that Zuma simply ignores the courts and continues to pursue the deal.

Demand and affordability

South Africa currently has more than enough electricity to meet its needs. This wasn’t the case about five years ago when widespread outages hit the country. Since then new electricity generation capacity has been added, through the the rapid roll out of renewables, and the opening up of two new giant coal burning plants. Consumption, particularly by industry, has steadily declined due to faltering economic growth and higher electricity prices. Demand has dropped so much that Eskom plans to close five coal burning power stations.

The argument that the country needs another 9,600 megawatts was identified in documents that produced in 2011. These are now widely acknowledged as being badly out of date. Recent studies by the University of Cape Town’s Energy Research Centre have shown that the country doesn’t need to consider nuclear for another 20 years.

A number of studies have also shot holes in the government’s argument that the country can afford the proposed nuclear build. The Council for Scientific and Industrial Research has developed models showing that new nuclear is likely to be much more expensive than coal or renewables. The price ticket for nuclear – which some estimates put at more than R1 trillion – doesn’t take into account the costs of operation, fuel, insurance, emergency planning or the regulation or decontamination at the end of the life of the reactors.

It would also impose a financial burden on the country’s fiscus which it can ill afford particularly now that the economy has been rated at junk status.

Ulterior motives

So why is Zuma still pushing for the deal to go ahead? One source of pressure might be the Russians. South Africa’s former energy minister, Tina Joemat-Pettersson, had been instructed to signed a deal with the Russian utility, Rosatom to build the reactors. South Africa has also already signed nuclear power cooperation agreements with other countries like the US and South Korea, which the court has declared void.

A more likely reason for Zuma’s zeal is the involvement of the Gupta family with whom he has close ties. The family’s web of interests around the nuclear deal are complex.

What is known is that the Gupta family controls South Africa’s only dedicated uranium mine. The family has developed close relationships with key individuals at Eskom. In November last year the country’s then Public Protector pointed to overlapping directorships between Gupta-owned companies and Eskom.

The report also suggested that Brian Molefe, Eskom’s CEO, had a close relationship with the family. These revelations led to his resignation shortly after the report was published.

Another strand in the complex web is the fact that Zuma’s son Duduzane is a business partner of the Guptas while other relatives are directly employed by them.

Despite his determination, Zuma has become increasingly isolated in his quest for nuclear procurement. The African National Congress is clearly divided on the issue. This is evident from the fact that Zuma has resorted to reshuffling his cabinet to make way for more compliant ministers without reference to party officials as would be the norm.

The private sector has also come out against the idea while the list of civil society organisations opposed to nuclear expansion goes well beyond the environmental lobby and includes a broad spectrum of foundations, faith communities, human rights campaigners and defenders of the country’s constitution.

High stakes

The nuclear judgement in Cape Town indicates that South Africa’s legal system has not yet been “captured” by private interests.

The key question is whether Zuma and Eskom will accede to the verdict, or whether they challenge it while continuing to ignore the rule of law. Not only would this subvert the country’s constitution and its democratic form of government, it would also deny the constitutional right to popular participation in energy democracy.

The stakes are high – for the country as well as for the president. Will he continue to treat the country’s energy future with impunity? Or will this judgement symbolise the rollback of the democratic dispensation envisaged by the authors of the country’s constitution?

Disclosure statement

David Fig has had a long association with Earthlife Africa, and serves on the steering committee of the African Uranium Alliance.

South Africa: Energy Notes Judgement By Cape Town High Court in the Earthlife and Safcei Litigation

press release

The Minister of Energy, Ms Mmamoloko Kubayi, notes the judgement by the Cape Town High court in the Earthlife and South African Faith Communities’ Environment Institute (SAFCEI) case against the Minister of Energy and other respondents. The Minister has now directed the Department to study the judgment, and will pronounce on the matter in due course.

The Minister will also engage all other relevant parties on the outcome of the matter.

The Department reiterates that the South African Government has not entered into any deal or signed any contract for the procurement of nuclear power. However, there are Inter-governmental Agreements (IGA’s) signed between South Africa and the following countries: United States of America, South Korea, China, Russia, and France.

The Minister will engage Parliament on this matter going forward.

Issued by: Department of Energy

South Africa

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East Africa: Half a Million Homes Now Connected to M-Kopa Solar Home Systems

M-KOPA Solar has announced the 500,000th home connected to its pioneering solar home systems.

According to a press statement, Dorothy Nabawesi became M-KOPA’s 500,000th customer when she purchased a M-KOPA 400 system at the M-KOPA Shop in Mukono, Uganda. She says, “I don’t have the money to access the grid. For so long, the good things have been passing me by, like watching national and international news on TV. My grandchildren used to go to a neighbour’s house to get information about the world. Now with M-KOPA, I have better lighting for them to read, plus extra power to charge my phone, listen to radio and watch TV.”

The M-KOPA 400 – the company’s larger solar system that includes a digital TV – has been available in Kenya since Q2 2016 and now also being rolled out in Uganda and Tanzania. Customers can purchase a M-KOPA Solar TV either by acquiring a M-KOPA 400 system, or by extending their $0.50/day M-KOPA solar home system payment plan and upgrading for more power and a solar TV.

Jesse Moore, CEO and Co-Founder, M-KOPA, said in the press statement, “Half a million customers is a terrific milestone for the M-KOPA team and the entire off-grid power sector. We’ve reached this point thanks to high quality products, a relentless commitment to customer service and a conscientious approach to pricing and credit.”

The company is also announcing that it has reported over 250,000 credit scores in Kenya through the Credit Information Sharing initiative of the Central Bank of Kenya. Ninety-two percent are positive credit reports of loans that have been completed, or are in good standing. This enables customers to access additional financial services from M-KOPA and other financial institutions.

In April 2015, M-KOPA launched its own upgrades service for productive assets – including water tanks, energy-efficient cooking stoves and smart phones. In the two years since launch, it has sold over 150,000 upgrade products.

Moore says, “Our customers don’t just need a panel and a battery. They are looking to M-KOPA to provide products and services that help them be more connected, productive and financially secure. With half a million households now on board, we really understand customer needs and aspirations. We plan to grow our customer relationships for many years to come.”

M-KOPA has also established a separate business unit – M-KOPA Labs – to conduct research and development of additional products and services that run on its power and finance platform. It currently has research projects underway with several strategic partners and is looking at new products and market extensions across a range of sectors.

On the basis of having connected 500,000 homes to solar power, M-KOPA customers now enjoy over 62.5 million hours of kerosene-free lighting per month and they will save over 600,000 tonnes of CO2 over four years.

East Africa

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Zimbabwe: Timber Processing Giant Courts Suitors

THE country’s largest timber processing firm, Allied Timbers Zimbabwe (ATZ), a strategic parastatal sitting on 130 000 hectares of land, is courting suitors to help it construct electricity generation plants at its saw mills across the country using bio waste.

The Financial Gazette’s Companies & Markets (C&M) can report that the State-owned company, which has more than 10 estates in Manicaland, Midlands and Matabeleland provinces, made moves last week inviting potential suitors to partner it in the proposed power projects.

Investors into these projects are expected to design, build, finance, operate and transfer the facilities under Public Private Partnerships.

Allied Timbers, which falls under the purview of the Ministry of Environment, Water Resources and Climate, which is headed by Oppah Muchinguri-Kashiri, however, could not say how much was required to generate renewable energy using bio waste.

“ATZ aims to establish fuel briquette processing plants and electricity generating facilities at its sawmills and processing sites across Zimbabwe that are mainly in the Eastern Highlands to optimise and fully convert these huge quantities of post harvest and post processing waste that include saw dust, off cuts, lops and tops,” the company said in a statement.

It is unlikely that ATZ would find a domestic investor for its proposed projects due to the liquidity crunch in the country, meaning that the company would therefore be forced to court offshore investors for the power projects.

If this happens, the company would have to deal with the contentious indigenisation law, a situation which might make the deal unattractive.

In fact, ATZ has been in the market for more than two years now, seeking about US$5 million for retooling and recapitalisation.

The company only secured a US$2 million line of credit from Agribank last year.

ATZ early last year was forced to abandon contract milling.

The company had about 50 contracted saw mill operators in an arrangement where the harvested timber was equally shared between the company and the contractors.

This arrangement was to cover ATZ’s production shortfalls since it did not have adequate capacity and was also used as a black empowerment tool.

The contractors were significant contributors towards ATZ’s overall production until it decided not to renew the contracts last year, citing massive timber leakages and to instil a sense of order in the manner the company managed its estates.

It also said the rate at which the forests were being extracted was unsustainable.

Further, the company claimed that prices for its products were much higher than prices charged by contractors for similar products.

The fact that ATZ is a huge company, its overheads are huge and its break-even price is also high when compared to prices charged by contractors.

ATZ, however, lifted the suspension of contractors in June last year, re-hiring them to augment production.

The company said it had instilled order and had re-hired them in a manner that helps it to manage harvesting of trees on a sustainable basis while at the same time empowering locals.

Government in 1988 separated assets and liabilities of the Forest Commission into State Forestry and Commercial Forestry leading to the birth of Forestry Company of Zimbabwe in 2001, which took over commercial operations then housed under Forestry Commission.

The idea of unbundling the commission was to separate regulatory activities from commercial activities.

The intension was to enable both institutions to effectively pursue their mandates, with funds from the commercial wing supposed to assist in funding regulatory functions.

So the commercial wing gave rise to Forestry Company of Zimbabwe, later rebranded to ATZ while regulatory activities were reconstituted into Forestry Commission.

Its operations involve plantations, harvesting, and processing, marketing and selling of both pine and gum. It has been exporting its products to Zambia, Botswana, Namibia and South Africa and has plans to expand its export market.

Kenya: Report Lists Kenya Among Top in Wind Energy Investment

By Brian Ngugi

Kenya is among the countries poised to lead in wind energy investment in Africa this year according to a new report.

Global Wind Energy Council (GWEC), the international trade association for the wind power industry, says Kenya is setting the pace in the region in the use of wind as a renewable source of energy by initiating the generation of 700 megawatts for the national grid.

“For the Middle East and Africa, the main drivers will continue to be South Africa, Morocco (and we hope) Egypt, with strong contributions from Kenya and Ethiopia as some of the smaller markets are just getting off the ground,” says GWEC in its latest annual Global Wind Report market update.

It notes that at the end of 2016, over 99 per cent of Middle East and Africa region’s total wind energy installations were spread across 10 countries – South Africa, Morocco (787 megawatts), Egypt (810 megawatts), Tunisia (245 megawatts), Ethiopia (171 megawatts), Jordan (119 megawatts), Iran (91 megawatts), Cape Verde (24 megawatts), Kenya (19 megawatts), Israel (6.25 megawatts) and Algeria (10 megawatts).

The report cites Kenya’s Lake Turkana wind project, now completed and set to be commissioning in the coming months, as an example.

The 310-megawatt project will account for almost 18 per cent of Kenya’s total installed power generation capacity.

The German Development Bank and Agence Française de Développement of France are also doing due diligence of a wind farm of the KenGen in Meru with plan to construct a 400-megawatt plant.

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Nigeria: Edo-Azura Power Plant Excites World Bank, IMF

By Adibe Emenyonu

Benin City — The Edo State Government’s performance index in promoting Independent Power Plants (IPP) as a business model and opening up economic opportunities has received international recognition, as it became the cynosure of over 10,000 international personalities at the World Bank, International Monetary Fund (IMF) Annual Spring Meetings last week in Washington DC, THISDAY reliably gathered.

This was as the Azura Independent Power Plant, financed by the International Finance Corporation (IFC), which was expected to provide electricity to 14 million consumers, was highlighted to display how the World Bank Group’s collaboration supports the development and implementation of infrastructure development.

The Azura Power Plant project was initiated during the administration of Comrade Adams Aliyu Oshiomhole, in which Governor Godwin Obaseki, as the Chairman of the State’s Economic Team, facilitated the project to the state, thereby making Edo state an investor destination in sub-Saharan Africa.

The Azura power project included the construction, operation and maintenance of a 459 megawatts gas-fired open-cycle power plant near Benin City, and was necessary to add power to the national grid while being considered a priority project for the federal government.

With the ability to produce 459 megawatts in the first phase alone, the plant is expected to be the first greenfield Independent Power Project post sector reform to come online and has been described as a ground-breaking project set to pave the way for future private sector driven IPPs in Nigeria.

A statement from the office of the Chief Press Secretary (Interim), Mr. John Mayaki, disclosed that in a special publication widely circulated at the World Bank IMF Office Complex where over 10,000 participants were in attendance titled: “Nigeria: the Azura-Edo Independent Power Plant”, it was revealed that the power plant was part of a scheme called the Energy Business Plan (EBP).

It was further explained that the sponsors raised a total of $868m through equity contributions, while the power plant would deliver much-needed additional power to Nigeria, and, in turn, the broaden the West African power grid.

“The project is expected to provide access to affordable electricity to about 14 million residential consumers at a fraction of the cost of self-generated power”, the statement added.

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Sudan: Memorandum of Understanding On Producing Biofuel in Sudan Signed

Khartoum — A memorandum of understanding was signed , Thursday, between the Higher Council for Environment and Urban Development in Khartoum State, the Africa City of Technology and the Malaysian Bionas Group during a workshop organized by the National Assembly’s Agriculture Committee.

The projects set to produce two million tons of Jatropha plant oil.

Representative of the Parliament Agriculture Committee aims to fight poverty and raise standard of living , increase capacity building for small producers at rural areas by targeting five million and 600 thousand people.

Director of Africa City of Technology, Dr Osama Al-Reis said the production of biofuel was a national project set to bridge the gap in production of electricity especially at rural areas.

The Minister at the Higher Council for Environment in Khartoum State, Maj.Gen. Omer Nimir indicated to importance of Parliament role in enactment of laws and legislations for environmental field, stressing importance of partnership to make use of Malaysian experiment in domain of production of biofuel.

Sudan

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Zimbabwe: Electricity Supply Authority Plans Massive Restructuring

THE Zimbabwe Electricity Supply Authority (ZESA) is carrying out a restructuring exercise that will see 1 700 workers becoming redundant as the parastatal realigns its business model.

Employees at the power utility told the Financial Gazette that last year, the entity initiated a restructuring exercise which has rendered a number of posts redundant.

They alleged that recently a new organogram was launched and positions for artisan assistants, drivers and lead artisans would be phased out.

National Energy Workers Union of Zimbabwe (NEWUZ) secretary general, Thomas Masvingwe, who is representing the workers on the pending job cuts, confirmed the development.

He pointed out that artisan assistants had been reduced from a ratio of two to one to the current one to one per every artisan. He said concerted efforts had been made to engage ZESA on the matter since last year, but no meaningful progress had been made.

NEWUZ has since written to the designated agent of the Energy National Employment Council to register displeasure over the exercise.

In their submissions, the workers allege that on June 26, 2016, ZESA Holdings wrote to them advising that no such exercise was going on and if they should adopt a restructuring exercise, it would do so in consultation with the employees and their representatives.

“Surprisingly, on the 3rd of April 2017, the claimant learnt through memos addressed to its members that the respondent was actually on the advanced stage of the restructuring exercise, which will result in the loss of 1 700 to 2 000 jobs. Despite the assurances made by the respondents, they have unilaterally proceeded with their unlawful exercise. Consequently a labour dispute has arisen wherein this tribunal is clothed with jurisdiction to urgently resolve the matter,” said the workers in the court papers.

Contacted for comment, ZESA Holdings public relations manager, Fullard Gwasira said that the company was not aware of the developments.

“The ZESA group is not embarking on a retrenchment exercise at the moment, and has not given any such notice as is required by the Labour Relations Act. The Labour Act clearly emphasises the need to consult staff before any retrenchment exercise is embarked on. As part of the process to align staff structures to the prevailing business model, the company regularly examines its manpower charts. This process identifies areas of over and under staffing. The company then subsequently aligns its staffing to the business strategy. This process may entail moving staff to new areas which would have been identified. For example, the advent of prepaid meters has negated the meter-reading function, and staff in these portfolios is being redeployed in line with the current strategy,” Gwasira said.

Masvingwe insisted that there was no room for redeployment because the new organisational charts do not contain new posts.

“In this instance, some posts have totally been rendered redundant and the few remaining have been trimmed implying that the organisation now needs fewer people than before,” he argued. “Further, a copy of the internal correspondence memo in our possession dated April 3, 2017 undersigned by ZETDC managing director, Julian Chinembiri, confirms that the restructuring exercise is on course,” he said.

The memo from the ZETDC said: “The exercise was done to respond to the needs of the current business environment. It was important to review the organisational charts following the introduction of prepayment meters, planned automation of processes, creation of new customer services sections and observation that the 2006 charts were redundant in some instances.

“To that end, employees are to be aligned to the new charts by May 31 2017. Consultations will be done and the whole process shall be managed in a transparent manner with minimum anxiety to staff. It is hoped that the exercise shall be viewed positively for the benefit of both employees and ZETDC business.”

On June 29, 2016, Masvingwe wrote to the ZESA Holdings chief executive officer, Joshua Chifamba, on the matter.

“Our instructions are that you and your group have embarked on far reaching restructuring exercises. The ramifications of these exercises are varied and many, but includes the loss of employment by some of our members. Our understanding of the law is that we need not only to be consulted, but also to participate in the process in order to effectively protect the rights and advance the interest of our members,” reads the letter.

On July 7, 2016 ZESA’s head of corporate affairs, Rufaro Pasipanodya, denied that there was any restructuring exercise taking place.

“We note that you make reference to a far reaching exercise that you say the company has embarked on. Regrettably, we are unaware of the exercises that you allude to. ZESA Holdings and its subsidiaries would, as a matter of course, advise all the representative unions of its intentions, if at all it reaches a decision to undertake exercises of such a nature,” Pasipanodya said.

Nigeria: NEITI Commences Audit of Oil, Gas Sector

By Anyichie Tochukwu

The Nigerian Extractive Industries Transparency Initiative (NEITI) yesterday said it has commenced a comprehensive, independent audit of the nation’s oil and gas sector that would cover the periods of 2015 and 2016.

Mr Waziri Adio, Executive Secretary of NEITI, announced this in Lagos at a workshop organised for major oil companies in the country.

Adio said the independent audit was in line with the principles and standards of the global Extractive Industries Transparency Initiative (EITI).

According to him, relevant government agencies were expected to participate in the exercise.

He said the workshop was designed to acquaint participants with the structure and content of the template, the kinds of questions that NEITI would ask and answers expected to be provided by the covered entities.

“This workshop is to seek your views, suggestions and inputs as well as listen to your concerns on how to make the exercise hitch-free,” Adio added.

The workshop witnessed presentations on the EITI processes, methods, principles and standards including emerging issues on beneficial ownership and contract transparency.

The benefits of implementing EITI in Nigeria also topped discussions at the interactive session.

The executive secretary announced that NEITI would introduce a ranking reward system to incentivise participation of covered entities.

He said in the ranking system, companies would be graded based on their efficiency in populating the audit templates such as the quality, depth of information, data provided and quick response to set deadlines.

Adio explained that the system would be shared with over 51 member countries of EITI and multi-lateral organisations, to serve as reference points on adherence to business ethics for major investment decisions in Nigeria.

Nigeria

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