The Federal Government has stated its desire to abolish Nigeria’s culture of hidden company ownership, claiming that secrecy surrounding company ownership is a threat to economic growth since it facilitates money laundering and corruption.
Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning, stated this in Abuja yesterday at the official launch of ‘Opening Extractives in Nigeria.’ She added that the government was committed to ensuring transparency in firm ownership in Nigeria.
The global Extractive Industries Transparency Initiative (EITI) has launched a five-year program called “Opening Extractives” to assist 13 nations in implementing changes to reveal the ownership of extractive businesses.
Mrs. Ahmed, who was represented by Prince Clem Agba, Minister of State Budget and National Planning, stated that Nigeria has made concrete steps by establishing a Beneficial Ownership Register and amending the Companies and Allied Matters Act (CAMA).
She said: “Knowing the real owners of the companies that bid for, invest in and operate Nigeria’s extractive assets has practical implications for the economic growth, physical security and human development in our country. The Federal Government is aware and concerned that anonymous companies remain the major obstacle in the fight against money laundering and corruption.
“They enable corrupt and criminal actors, often with close political connections, to hide behind the chains of companies registered in multiple jurisdictions, to deny the Nigerian citizens of the benefits they should derive from their common wealth.
“Government believes that access to quality beneficial ownership information and data has the capacity to strengthen accountability and transparency which will invariably improve governance of the energy and mining revenues, support businesses, curtail corruption, stop illicit financial flows and help light insecurity”, she added.
Dr. Orji Ogbonnaya Orji, NEITI’s Executive Secretary, had previously stated that while the agency would continue to work to ensure that the regime of ownership secrecy was abolished completely, it was important to emphasize that the campaign for beneficial ownership disclosure was not a zero-sum game between government, society, and business.
“This is because while governments and citizens benefit in the form of increased revenues and welfare, legitimate businesses also benefit from improved business climate, fair and open markets, level playing field, corporate accountability, increased profitability, return on investments, reduced reputational risks and improved trust and confidence between them and their host communities etc”, he stated.
Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), who backed the government’s effort to ensure transparency in the sector, said the Commission had opened a beneficial ownership register for companies operating in the petroleum industry in his remarks.
“The NUPRC is committed to collaborating on maintaining information on beneficial ownership, maintain data on companies that owns extractive licences, creating a better and healthy business climate. The results of these is that citizens will be aware of who they are doing business with or competing against and will also encourage appropriate stakeholder engagement which is a part of Nigeria’s Open Government Action Plan”, he added.
