This study explores the dark side of transparency by problematizing the Nigeria Extractive Industries Transparency Initiative (NEITI) as a transparency, accountability and anticorruption initiative in Nigeria. It does this by interrogating the underlying assumptions that transparency in the form of increased information disclosure inevitably leads to enhanced accountability and reduced corruption. Theoretic insights are drawn from the transparency literature as well as from the International Accounting Standards Board's framework for financial reporting. The findings enable a more nuanced understanding of transparencywhere and when transparency works, and where and when it may lead to unintended outcomes. They show how increased information disclosure conceals and legitimises the weak and corrupt reporting systems and practices of government agencies. They highlight the importance of understandability of information disclosed as a key requirement of transparency. They illustrate that transparency is a complex social process by highlighting the means by which the government tries to gain control of the NEITI organisation and how NEITI's ability to operate effectively is dependent on the political will of the government in power. The findings also demonstrate that the instrument through which transparency is enacted is itself a central actor in the transparency process as historical corruption within the NEITI bureaucracy as well as the opacity of NEITI as an organisation lead to outcomes of distrust, uncertainty and doubt amongst NEITIs target audience. The dark side of transparency: Does the Nigeria Extractive Industries Transparency Initiative help or hinder accountability and corruption control? "Global EITI is held hostage by Nigeriahow can you criticize Nigeria when it is your flagship project? The Revenue Watch guide for civil society on how to do EITI, written by Glodwyn and Chris Nurse, was overflowing with Nigeria EITI stuff. Peter Eigen said the investment climate in Nigeria has improved dramatically, but the problem is that it is not that golden now. EITI should try not to mention Nigeria so much… it's like they are telling other countries 'you should try and be as transparent as Nigeria'. Is that really such a good idea?-Shaxson (2009 pp 41-42) There is an assumption behind EITI as a whole that if you manage your resources in a more transparent way, that will lead to more accountability and that will lead to better governance and more prosperity for the citizens. The assumptions should be interrogated. The linkages are not automatic…. We should be asking ourselves, despite all we have achieved, how much do the people know about this sector and with what they know are they asking the right questions?-Waziri Adio, Executive Secretary,
Pipelines carrying oil and gas are very safe forms of energy transportation, but they do sometimes fail.In the Developed World these failures are usually associated with impact damage (e.g. from earth moving equipment), corrosion, or manufacturing faults in the pipeline materials. In the Developing World theft and sabotage is a major, and increasing cause of failure. Countries such as China, Mexico, and Nigeria have major problems with theft of pipeline products, sabotage, and vandalism. This paper reviews pipeline failures in Nigeria, focusing on pipelines carrying hydrocarbon liquids. The review clearly shows that theft/sabotage is the major cause of failure to pipelines, and the recorded failure rates (0.35 per km-year) are well above failure rates reported on other pipeline systems around the world.Fatalities from pipeline failures range from 0.04 to 0.38 per km-yr, depending on the region in Nigeria. Additionally, on average, the operator of the pipeline system considered in this paper loses about $US100million/year due to these failures. This value does not consider the costs associated with payment of compensation, fines, environmental clean-ups, litigation, etc. The paper concludes with recommendations to improve pipeline safety systems to reduce these fatalities and costs.
a b s t r a c tAccidents involving transportation of petroleum products by road has been associated with high frequency of occurrence and high safety consequences in developing countries. Using Nigeria as case example, we analysed 2318 accidents involving truck tankers from 2007 to 2012 with a tailored risk assessment framework. The result shows 79% of the accidents were caused by human factors, mainly dangerous driving. More than 70% of the accident resulted in loss of containment leading to spills, fires and explosions. 81% of the accidents resulted in either injuries, fatalities or both. Most of the 972 accidents with fatalities recorded 1-5 fatalities with occurrence frequency of 0.89. The analysis ranks geographical regions (states) in order of accident consequences and frequencies to enhance regulatory distribution. About 7 million USD was estimated as the average cost per accident. Estimated costs are significant and should motivate improved policy design.
This study explores how the global transparency norm is localized in the Nigerian extractive industry. Transparency is theorized as a process which can be analyzed in terms of rules, interactions, power games, and context. Nigeria is conceptualized as a “penkelemes”—a concept which denotes how traditions, norms, and practices are intertwined with a system of corruption, kinship, and patronage networks. Three main insights emerge. First, the complex motives and ability of local actors to balance demands for transparency from the international community with participation in the corrupt local political system determines which international norms they adopt. Second, the struggle for power over the transparency process determines the local understanding of transparency. Third, the link between transparency and corruption is paradoxical. Corruption conditions the enactment of transparency but even this corrupted transparency is useful in fighting corruption. Thus, transparency becomes part of the problem as well as part of the solution.
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