His family in the United States said they were frustrated by the length of time it was taking to determine what happened, which had left them grieving and in limbo.
But Minister of Transport Phil Twyford said that although he had sympathy for them, "investigations need to be done thoroughly to ensure the findings are robust".
It came as a report obtained by Mountain Scene detailed, for the first time, just what went wrong.
A summary of evidence report compiled during the Civil Aviation Authority's investigation found there were no breaches of any acts.
The report outlines how Nii and tandem master James Stavro were the last of nine pairs to make their jump.
During the main parachute deployment there were a ''significant number of line twists'' and Stavro made the call to perform a cutaway.
The reserve chute also failed to deploy correctly, which "resulted in the tandem pair entering Lake Wakatipu at a high rate of descent".
Upon entering the water, Nii was told by Stavro to pull the life jacket activation tag, but it did not inflate. Stavro then tried to inflate the jacket by blowing into the inflation pipe, but it appeared that did not work either.
The cause of the failure to inflate has not been determined.
"A short time later, despite the best efforts of the TM [tandem master] the victim, Mr Nii, submerged out of view," the report stated.
The report noted it was "very rare" for a properly-maintained parachute to fail.
It also detailed changes NZONE had made since the incident, including water landing workshops and the inclusion of a jet ski on site.
The changes were proactive steps, the report stated.
The authority's report found Nii's safety briefing was appropriate.
NZONE general manager Clark Scott declined to comment.
A spokesman for Twyford said he could not comment on the family's concerns because "investigatory practices are an operational matter and it would also be inappropriate for the minister to comment while there is an ongoing investigation".
When asked about funding for the authority and the Transport Accident Investigation Commission, Twyford said in a statement both organisations were "sufficiently funded to do their jobs", noting the authority had undertaken a significant programme of work to improve its regulatory effectiveness.
"My sympathies go out to the Nii family and I understand their frustration," Twyford said.
"These types of investigations need to be done thoroughly to ensure the findings are robust and this takes time."
The funding for the authority and the commission was reviewed regularly, he said.
This week the family of Queenstown pilot Mitch Gameren, who was killed in a helicopter crash on Fox Glacier in 2015, also called for changes, including a funding boost for the authority.
A spokesman for the authority declined to confirm if the organisation had even investigated the Nii incident.
He said the commission was the lead investigation agency, so "unfortunately we're not able to comment while that investigation is under way".
A commission spokesman said the report was at least six months away.
The organisation had about 30 open cases, he said.