“The blessing of the LORD, it maketh rich, and He addeth no sorrow with it.(Proverbs 10:22 KJV). The above biblical injunction is a promise of GOD to mankind . But in Nigeria and of course Africa generally, the reverse seems to be the case, because there are too many greedy people in governance.

Corruption, the manifestation of greed is endemic in the Extractive Industry. But in a bid to enthrone transparency in this critical sector, and following the gradual return of stakeholder’s confidence, PWYP Norway and Norwegian School of Economics (NHH) with support from Norad and Norwegian Ministry of Foreign Affairs, organized a conference on Financial Secrecy, Society and Vested Interest in Bergen, Norway in November, 2012. The choice of the conference title was informed by the fact that secrecy in the Extractive Industries has really impoverished the citizens of resource rich countries which paradoxically is the “Resource curse”

Nigeria which is endowed with natural resources ranging from coal, Diamond, gold, Limestone, Iron ore etc is a typical victim of the curse. The high level of corruption and theft due to lack of transparency in the Extractive Industry, particularly the oil and gas industry is quite alarming. The oil sector in the world has over the years gained notoriety as a place where corruption thrives and a few individuals drain the country of its resources, which could, otherwise, have been used for the development of the nation.

Oil spill ravages community

The oil resources led to massive corruption and civil strife, instead of being a blessing. It is farcical that African countries that are endowed with natural resources are poor due to lack of transparency and accountability by both the government and the companies licensed to operate in these countries.

I feel duty bound, as a participant in the said conference, to share some of the views on the need for transparency, if Nigeria and Africa as a whole is to benefit from its natural resources.

Some issues in the financial secrecy include but not limited to the Lawyer’s confidentiality, tax havens. The name secrecy jurisdiction is preferred to Tax Haven because, these jurisdictions sell services to foreigners. The huge financial income made is being transferred to the parent companies’ country thereby impoverishing the African nations and impacting them negatively.

Considering the spate of corrupt practices by the government as a result of the fact that the Nigerian economy is substantially public sector driven, mainly funded from the oil revenue which ultimately remains a monopoly of government, the country loses a lot of money as a result of financial secrecy. The resources lost if quantified can provide good roads, good hospitals, good schools, all social amenities in all the local governments thereby reducing the mortality rate in the nations.

Transparency which is the watch word in the management of natural resources in Nigeria should be imbibed by all stakeholders in the sector. As a matter of fact, it should be one of the values associated with the companies involved in the exploitation of natural resources.

For corruption to be curbed, every public expenditure and income should be put in a public domain for easy access to financial users.

All other transparency initiatives focus on disclosing tax payments. The Extended Country by Country reporting is the only reporting standard that requires companies to report their activities on country by country basis in their host countries as well as their home countries. It is the only transparency reporting that is useful to all users of financial statements.

The Nigerian government should as a way of salvaging the country and promoting transparency in Extractive Industry sector consider the following:

?    Avoid negotiations with Companies
?    There should be fiscal terms in law instead of in contract
?    Complete tax system
?    Equal terms for all companies.

If indeed we are serious about turning Nigeria around to a productive, progressive, corruption free country, where men and women, rich and poor, indigene or non indigene, royalty or commoner, able bodied or living with disability can realize their aspirations, utilize their potentials and function maximally, we must be ready for radical changes in our ways of thinking and doing things.