Extractive sector governance: does a nexus of accountability render local extractive industries transparency initiatives ineffective?

Abstract

Purpose The purpose of this study is to examine the Nigerian Extractive Industry Transparency Initiative’s (NEITI) ineffectiveness in delivering public accountability to Nigerian citizens. Although this failure is recognised in prior literature, the authors contend that NEITI’s role is obscured by one-sided links to external factors. Design/methodology/approach The conceptual framework presented in this study is built around Dillard and Vinnari’s (2019) distinction between different accountability systems and Brown and Dillard’s (2020) complimentary insights on the technologies of hubris and humility. The analytical framework draws from Grant and Keohane’s (2005) modes of accountability, which the authors use to articulate conflicting accountability demands (to-whom and for-what) of NEITI’s operating relationships. Combined, the authors analyse official documents, media, reports and interview responses from members of NEITI’s National Stakeholders Working Group. Findings This study surfaces a variety of intersecting interests across NEITI’s operational relationships. Some of these interests are mutually beneficial like that of Donors and the Extractive Industries Transparency Initiative. Others run counter to each other, such as NEITI’s relationship to the Presidency which illustrates a key source of NEITI’s ineffectiveness. In discussing these interests, the authors articulate their connection to NEITI’s design as an accountability system and its embedded limitations. Originality/value The authors provide incremental understanding of prior insight regarding NEITI’s ineffectiveness by drawing attention to its fundamental design as an accountability system and its failure to deliver public accountability. To illuminate these failures, the authors also map NEITI’s competing accountability demands – the nexus of accountability – to demonstrate the complex socio-political reality within which NEITI is expected to operate. The authors posit that NEITI’s ineffectiveness has as much to do with NEITI itself, as it does with external factors like the quality of information disclosed and the unique Nigerian context.

Accounting in and by the extractive industries: development of a conceptual framework and avenues for future research

“…In an African context, Moses et al (2023) examine the Nigerian Extractive Industry Transparency Initiative's (NEITI) ineffectiveness in delivering public accountability to Nigerian citizens. The authors (re)imagine the rationale for NEITI's ineffectiveness by drawing attention to its accountability objective.…”

Accounting for a mining company’s transformation in Ukraine

“…In their case study of a division of the UK national coal board, Berry et al (1985) found pressures for change to operate through the accounting and finance function, highlighting its role in organizational transformation. However, more research is needed to understand the drivers of new (environmentally oriented) management accounting procedures (Morrison et al, 2023;Moses et al, 2023;Ukwatte et al, 2023;Angotti et al, 2022). In the mining context, case study evidence suggests that accounting change can be understood through the transformation of the role of the management accountant and its facilitating and impeding drivers, including the expectations of top management, production managers and other key actors (Karlsson et al, 2019a(Karlsson et al, , 2019bCurry et al, 2019;Curry and Hersinger, 2020).…”

“…Hence, in their literature review, Gray et al (2019) call for more research on accounting diversity, international financial reporting standards (IFRS) compliance, the reporting of social and governance issues and anticorruption and transparency initiatives. Another stream of literature is particularly concerned with MAC changes, failing reforms and accountability challenges in developing countries (Angotti et al , 2022; Morrison et al , 2023; Moses et al , 2023; Lassou and Hopper, 2016; Hopper et al , 2017; Tsamenyi et al , 2017; Hopper et al , 2009). This is important since these developing countries contain nearly 70% of the earth’s mineral resources (Moses and Hopper, 2022).…”

“…Ukraine is the ideal context in which to conduct such analyses, as it is situated between the Western liberal market logics that it is trying to adopt and the illiberal Soviet heritage logics that it is trying to discard. In analyzing these institutional logics and attributing them to changes in MAC regimes, we contribute to the literature on MAC changes in emerging/developing economies (Jayasinghe and Uddin, 2019; Hopper et al , 2009; Tsamenyi et al , 2017; Ashraf and Uddin, 2015; Munir et al , 2013; Paladi and Fenies, 2016), as well as to the literature on MAC changes in extractive industries (Ukwatte et al , 2023; Angotti et al , 2022; Morrison et al , 2023; Moses et al , 2023), by adding explanations for why, in some contexts (i.e. Ukraine), organizational actors accept and favor liberal Western market logics and how these logics influence the corporate MAC regime.…”

Accounting infrastructure and promissory sustainable extractive industries: an actor-network theory analysis

“…While society's desire for sustainable development in EIs underscores the need for increased accountability and transparency in EIs' activities, businesses operating in EIs do not seem to care as much about accountability and transparency as they are focused on just meeting government expectations while making as much profit as possible (Addison and Roe, 2018;Angotti et al, 2022). Furthermore, accountability to stakeholders in EIs cannot be realized through reporting alone but rather through the empowerment of citizens and fostering the values of communities, which needs to be reported in a timely and enforceable manner (Moses et al, 2023). The accounting infrastructure can be used to measure, disclose and report to promote sustainable practice in EIs.…”