Abstract
Sustained economic growth in resource rich
countries is achieved with successful industrialization, normally braced with
natural resource revenues. Natural resource revenues, to the extent they are
appropriated by states, can relax common resource constraints to growth and
pave way for rapid development. Despite the historically positive association
of natural resource revenues to industrial growth in many advanced countries, the
experience of less developed countries (LDCs) since the 1950s has largely shown
prevalence of the resource curse phenomenon. NEITI was established as a voluntary
multi-stakeholder initiative for the extractive industries to address problems of the resource curse
in Nigeria. The study aims to assess how NEITI oil and
gas audits (OGAs) serve as instruments for transformation of resource rents to
riches by ensuring that oil and gas revenues enhance financial sustainability
in Nigeria. The institutional theory was adopted as the
theoretical underpinning for the study. The study used a documentary research
design. Data for the research was obtained from secondary sources, mainly publications
of NEITI & other government agencies. Data
analysis was done using descriptive statistics and content analysis. The study revealed that NEITI OGAs are potent instruments
in Nigeria’s public financial management. It established that NEITI OGAs have enhanced
transparency but failed to enhance accountability. The study also showed that NEITI
OGAs have not ensured financial sustainability in Nigeria. The study recommends the need for improved synergy between multi-stakeholder
groups, civil society empowerment and prioritization of domestic economy over
international accreditations, as new strategies for NEITI to enhance resource
governance and financial sustainability in Nigeria.
NIGERIA JOURNAL OF PUBLIC ADMINISTRATION AND LOCAL GOVERNMENT