The EITI Board accepted Niger as an EITI member at its 46th Board meeting in Oslo from 13-14 February 2020.
Niger is the world’s fifth largest producer of uranium. It also has considerable reserves in gold, iron, coal and oil. 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. Niger’s oil production is projected to increase from 20,000 to 100,000 barrels a day in 2021, but the country does not export crude oil at this stage.
Niger will 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. 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.
The government recently adopted a new petroleum policy, making oil production a key driver for Niger’s development. The government expects to receive USD 4 billion in investment over the next two years in the oil and gas sector. Plans are underway to establish a new state-owned enterprise in the oil and gas sector. The extractive sector currently contributes to 23% of total state revenues. The country has been trying to diversify the mining sector and attract new investors, given the stagnation in uranium production.
Social conflicts have centered on the environmental impacts of mining, the government take and revenue transfers to local communities. The national EITI has included data on payments by Niger’s refinery, employment by mine and artisanal and small-scale mining to ensure EITI reporting responds to local demands for information.
The three main taxes and fees imposed on extractive industry companies are capital gains tax, profit tax and royalties. The Tax Department and the Public Treasury are the main bodies responsible for collecting and managing taxes paid to the central government, while the Ministry of Energy and Petroleum and Ministry of Mines and Industrial Development are responsible for sector-specific levies. Municipal government are responsible for levying extraction tax. While the Constitution requires contract disclosure, they are only available through the official gazette.
Mining licences are awarded on a ‘first come first served’ basis by the Ministry of Mines and Industrial Development. Oil and gas production sharing contracts are concluded in the same manner.
Niger is a leading producer of mineral commodities such as uranium (the world’s fourth largest producer) as well as gold, coal and crude oil. There has been ongoing investment in new uranium production capacity and the government awarded 38 new mining licences in 2013.
Niger is currently building two pipeline projects. One carries refined petroleum products to the border with Burkina Faso. The other, a pipeline to the coast of Benin, would allow Niger to become a crude oil exporter and significantly contribute to increased production. Crude oil output and exports of refined petroleum products are currently constrained by the country’s sole refinery’s capacity of 20,000 barrels per day and transport logistics. The proposed pipeline, traversing Benin to the coast would be capable of transporting up to 185,000 barrels per day. According to the International Monetary Fund (IMF), project construction is expected to start in 2019 and to take three years to complete.
According to the IMF, there is only one industrial gold mining company operating in the country. This gold mine produced 1.3 tons of gold in 2017 with an export value of 0.5% GDP. However, the vast majority of gold production is artisanal and is not properly captured in official statistics. Unofficial estimates from the IMF range from 4 to 10 tons. Artisanal gold mining is expanding rapidly and could soon overtake uranium as the second largest export earner.
On 11 October 2019, Niger submitted its candidature to become an EITI member country. On 22-23 January 2019, Prime Minister Brigi Rafini publicly announced the intention of Niger to implement the EITI Standard. The World Bank had engaged a process to map all civil society organisations in the country, facilitated a process for civil society members to elect thier representatives to the multi-stakeholder group and created a platform for communication amongst civil society members. Niger was previously suspended by the EITI Board on the basis of inadequate progress in implementing the EITI Standard on 26 October 2017. Prior to this, the Deputy Chief of Cabinet at the Prime Minister’s Office had written to EITI Chair, Fredrik Reinfeldt, to announce the country’s withdrawal subsequently.
Niger rejoined the EITI in February 2020.
The government published created the legal basis for EITI implementation on 4 July 2005 (Decree 000073/PM), renewed by subsequent decrees on 10 August 2007 (Decree 000192/PM) and 5 May 2008 (Decree 000069/PM). A National Committee – the multi-stakeholder group – oversees EITI implementation and is composed of three subcommittees: statistics and audit, capacity building and communications.
Article 150 of the 2010 Constitution of Niger makes it obligatory for contracts related to the exploration and exploitation of natural resources to be published in the official gazette "Journal Officiel de la République du Niger". The same applies to payments made to the State - disaggregated by company.
Niger's candidature application was received by the EITI Secretariat on 10 October 2019. Niger's candidature application form, together with supporting documentation, were approved by the MSG on 7 October 2019.
This application is currently under review by the EITI Board.
Below you can find the following documents:
FR Letter Prime Minister Niger re-joining EITI
EN Letter Prime Minister Niger re-joining EITI
FR Niger EITI Candidature Application Form
EN Niger EITI Candidature Application Form