Nigeria ranks 40th among 58 natural resources-rich nations in terms of management of the revenues generated from their resources to bring about commensurate development of their citizens, according to US-based Revenue Watch Institute.
RWI's 2013 Resource Governance Index ranking released on Thursday showed Nigeria having 42 overall score, placing it behind 10 other African nations.
"The lives of over a billion citizens could be transformed if their governments managed their oil, gas and minerals in a more open, accountable manner," the group stated in a statement announcing the release of the report on its website on Thursday.
No African country was among the first 14 countries in the ranking which is topped by Norway, the US and United Kingdom with 98, 92 and 88 scores respectively.
Nigeria came behind 10 African countries, named with their scores as follows, Ghana (63), Liberia (62), Zambia (61, South Africa (56), Morocco (53), Bostwana (47), Gabon (46), Guinea (46), Sierra Leone (46) and Egypt (43).
The group, also in the report linked the development of the individual countries with the good governance of the natural resources at their disposal.
It said, "The RGI is based on the premise that good governance of natural resources is necessary for the successful development of countries with abundant oil, gas and minerals.
"It provides a diagnostic tool to help identify good practices as well as governance shortcomings."
It based its assessment of the countries on 'four key components of resource governance' namely, 'Institutional and Legal Setting, Reporting Practices, Safeguards and Quality Controls, and Enabling Environment'.
The report, which identified mismanagement and corruption as constituting major setback in resource governance in many of the countries, specifically mentioned Nigeria as having 60 per cent of its oil revenue in 2011 alone higher than total international aid to all sub-Sahara Africa.
A review section of the report read in part, "Mismanagement and corruption have many manifestations and can have dire consequences. Some countries negotiate poor terms with extractive companies, forsaking potential long-term benefits.
"Many countries do not collect resource revenues effectively. And even when resource revenues do end up in government coffers, they aren't always spent in ways that benefit the public. Too often, governments keep citizens and civil society leaders in the dark regarding government contracts and resource revenues."