Overview and role of the EITI
Niger was re-admitted as an EITI implementing country in February 2020.
Niger is the world’s fifth largest producer of uranium. It also has considerable reserves in gold, iron, coal and oil. Niger’s oil and gas sector is an important engine for economic development, and its development is underpinned by the country’s 2019 Petroleum Policy. Oil production began in 2011 and intensified following the expansion of the Agadem project by China National Petroleum Corporation (CNPC), as well as several discoveries by Algerian state-owned enterprise SONATRACH and Savannah Petroleum. While oil production is projected to increase, the country does yet not export crude oil. In July 2020, Niger adopted a 15-year national mining policy which aims to diversify mining beyond uranium.
Niger plans to use the EITI to monitor production and revenues in the burgeoning hydrocarbon sector, which is expected to generate substantial government revenues to develop the national economy. ITIE-Niger also aims to use extractives data to inform public debate. Formalisation of artisanal mining, following the gold rush on the Aïr mountains, is also a key priority of the government.
Economic contribution of the extractive industries
- to government revenues
- to exports
- to GDP
- to employment
Extractives sector management
Tax and legal framework
Niger’s mining sector governed by the Mining Code and its oil and gas sector is governed by the Petroleum Code. The Tax Department and the Public Treasury collect and manage taxes paid to the central government in accordance with the Tax Code. The three main taxes and fees imposed on extractive industry companies are capital gains tax, profit tax and royalties.
The Ministry of Energy and Petroleum and Ministry of Mines and Industrial Development are responsible for sector-specific levies. Municipal governments are responsible for levying extraction tax.
Licenses and contracts
Mining licenses are awarded by the Ministry of Mines and Industrial Development on a first come first served basis and are disclosed via the country’s mining cadastre. Oil and gas production sharing contracts are concluded in the same manner. Niger’s Constitution requires contract disclosure, and mining and petroleum contracts are disclosed on the ITIE Niger website.
Niger does not have a specific legal framework mandating the public disclosure of beneficial ownership information. However, beneficial ownership data is required to be submitted upon the establishment of a company to the Niger Chamber of Commerce, Agriculture, Industry and Handicrafts of Niger (Centre de Formalités des Entreprises - CFE).
According to Law n°2017-63 of the Petroleum Code, applications for hydrocarbon exploration or exploitation permits must include a list of shareholders or associates who have control over the company. According to Decree No. 2006-265/PRN/MME of the Mining Law, applications for mining permits should indicate the names, capacity, nationality and domicile of all persons having responsibility for the management of the company.
Niger does not yet have a beneficial ownership registry, nor does it disclose beneficial ownership information in EITI Reports.
In accordance with the Petroleum Code (Article 146), 85% of oil and gas ad valorem royalties, fixed fees and surface royalties are allocated to the state budget, and 15% are allocated to regions and communes hosting extractive activities for the purpose of local development. Mining revenues are distributed in the same way and also include proceeds from artisanal mining.
ITIE-Niger is administered by the Niger Multi-Stakeholder Group (MSG), also known as the Groupe multipartite de concertation. The MSG is chaired by the Director of the Prime Minister's Office.
Government announces commitment to join the EITI
Multi-stakeholder group is formed
Candidature application is submitted
2020 EITI Report published
Niger’s Validation is expected to commence in April 2023.