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Soldiers loyal to dissident General Laurent Nkunda rebel man a checkpoint in Kimoka

The Nigeria Extractive Industries Transparency Initiative (NEITI) has commended the recent decision of the United States Court of Appeal to dismiss a lawsuit instituted by organisations in the oil industry to challenge the Dodd-Frank Act.

The Act is a U.S law, which requires all U.S. and foreign oil companies to mandatorily disclose publicly all payments made to the U.S and foreign governments where they operate.

NEITI in a statement Monday in Abuja said the dismissal was a major test of the legislation enacted by the US Congress in 2010.

It explained that the decision was worthy of emulation by all countries that subscribe to the global Extractive Industries Transparency Initiative (EITI), and should spur Nigeria to quickly pass the Petroleum Industry Bill (PIB) which is currently before the National Assembly.

The statement, signed by NEITI's Director of Communication, Orji Ogbonnaya Orji, said: "NEITI believes that this positive development over Dodd-Frank legislation is consistent with another major declaration by the European Union (EU) to adopt an agreement among all EU countries to compel all EU-listed companies operating in the oil, gas, mining industry to make similar public disclosures on payments made to governments at home and their host countries on project-by-project basis.

"NEITI strongly aligns itself with these developments in view of the implications of extractive industry corruption on increasing poverty, social conflicts and poor socio-economic development common in resource-rich nations."

The organisation added that the developments were happening just when a former United Nations' Secretary General, Kofi Annan, is championing an initiative which focuses on prudent management of natural resources wealth and good governance in the extractive sector, especially in the Sub-Sahara Africa.

"This new global order for mandatory disclosure of payments made to governments both at home and in their countries of operations is consistent with the cardinal principles of the EITI) which NEITI is working hard to enthrone in Nigeria," the statement said.

"NEITI is delighted that this unethical business practices is beginning to attract the global attention it rightly deserves.

For instance, from NEITI's independent audit reports that focused on public disclosure, Nigerian government has so far recovered about $2 billion while inter agency efforts led by NEITI to recover another outstanding sum of $9.6 billion from companies is being intensified.

"It is the view of NEITI that addressing problems associated with poor management of natural resources wealth remained the fundamental basis for tackling the increasing trends of global inequality, poverty, social conflicts and insecurity which are common in resource-rich countries.

"NEITI is excited about these developments, especially at this time when public demands and agitation for reforms in Nigeria's extractive sector is on the increase through the PIB.

"The PIB now before the National Assembly for passage into law is another great opportunity for Nigeria to align its extractive industry governance to international best practices and ensure that revenues from its oil, gas and mining sector support national development," it said.