“Extractive 101—A Basic and Comprehensive Companion’ is a 52-page document that essentially provides fundamental guides to equip voices and interest groups with critical information in pushing and demanding appropriate reforms by government and other players in the extractive sector, through seven different modules.
The publication provides a detailed introduction into the structure of oil and gas industry operations giving conginsance to the Upstream, Midstream and downstream.
It extensively discusses various arrangements under the upstream sector such as Joint Venture—the standard agreement between the national oil company and international oil company; Production Sharing Contract—adopted as a response to the funding pressure from Joint Venture; Service Contract—where contract undertakes exploration, development and production activities for, and on behalf of NNPC or the concession holder, at its own risk; Marginal Field Concession—adopted to promote Nigerian content development in oil exploration and production.
The publication further highlights the evolution of mining in Nigeria, detailing its rapid transformation from merely needs of colonial powers to private sector business with little regulation, development and wealth creation, and gives a comprehensive list of various reforms the mining sector has hitherto undergone.
It explains the responsibilities of various categories of players and regulatory agencies working on the extractive sector including specific role of the government in providing the institutional and legal framework for the industry to thrive. It also explains the linkage between extractive revenues and socio-economic impact to the individual and community well-being in both short and long term.
Using simplified descriptive info-graphic, the publication explains the revenue flows’ relationships, giving figures and percentages of revenue streams and their workability.
On issues bothering transparency and accountability in the extractive sector, it presents initiatives that promote transparency and accountability in the extractive sector with special focus on the EITI process in Nigeria.
In addition, the publication details the oil, gas and mining revenue stream allocation to the national and sub-national budgets through general allocation sharing formula and processes.
It also promotes country-specific understanding of recurring problems and challenges of the sector with a view to advancing citizens’ capacity to engage government, industry players and others for the realization of the requisite sustainable change that is in dire need in Nigeria.
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