Nigeria – São Tomé and Príncipe Joint Development Authority is an organization established in 2001 by treaty between Nigeria and São Tomé and Príncipe to regulate a Joint Development Zone along the two countries' maritime border in the Bight of Bonny.
Background
The Nigeria–São Tomé and Príncipe Joint Development Authority (NSTPJDA) was created by treaty in 2001 to regulate the Joint Development Zone (JDZ) in the Bight of Bonny, located along the maritime border between Nigeria and São Tomé and Príncipe.
The JDZ is an area believed to be rich in oil and gas reserves. Since exploration by either country alone would interfere with the other's maritime territory, the two countries agreed to establish a joint authority to manage and share the economic benefits from the zone.
The treaty titled Treaty between the Federal Republic of Nigeria and the Democratic Republic of São Tomé and Príncipe on the Joint Development of Petroleum and other Resources, in respect of Areas of the Exclusive Economic Zone of the Two States was signed in Abuja on 21 February 2001. The NSTPJDA’s head office is located in Abuja, Nigeria. Notably, in 2013, the bill for the development of the Authority’s building was reported to have been inflated.
In 2015, Nigeria considered withdrawing from the joint venture, citing that it had financed the Authority for the previous five years without realizing the anticipated revenue of $100 million USD per year. Meanwhile, São Tomé and Príncipe shifted focus toward fishing activities due to dim prospects for oil in the zone.
By 2016, the JDA had an annual budget of around $12 million USD, but allegations of financial irregularities emerged. Since 2004, no licensing rounds had been organized.
By 2018, the Authority faced funding difficulties and was unable to pay staff for several months despite having collected approximately $300 million USD in signature bonuses from exploration and exploitation activities in 2001.
In 2019, the Extractive Industries Transparency Initiative (EITI) International Secretariat requested reconciliation of revenues and disclosure of contextual information, a demand previously made in 2015 and 2016.