Emmanuel OchayiThe Extractive Industries Transparency Initiative (EITI) has called upon the Nigerian National Petroleum Company Limited (NNPCL) to disclose further details about its 20% equity in the Dangote Petroleum Refinery.
During a visit to Nigeria, the EITI delegation emphasized the need for transparency, asserting that NNPCL has failed to clarify the valuation of its stake in the $20 billion refinery.
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EITI Technical Director, Alex Gordy, expressed concerns, stating, “NNPCL has acquired a 20% equity interest in the Dangote refinery. However, it has not explained the valuation of this equity interest. The key factor here is accountability.”
Gordy urged NNPCL to reveal the equity payment mode, raising questions about how the national oil firm plans to pay for the acquisition.
He emphasized the lack of information on whether payment would be made through future oil deliveries and highlighted the need to understand the valuation process concerning market rates and consistent deductions from federal government revenues.
Bady Balde, Deputy Executive Director of EITI, mentioned that the delegation’s visit was prompted by concerns arising from the recent validation of Nigeria’s extractive industry. He stressed the importance of a consistent National Stakeholders Working Group (NSWG) for effective validation assessments, citing the absence of a NEITI board as a major drawback.
“The vacancy was the issue of concern that led to this mission,” Balde stated, underscoring the significance of stakeholders’ engagement in making NEITI data meaningful.
The EITI’s call for transparency adds a new layer of scrutiny to Nigeria’s oil industry, demanding clarity and accountability from key players.
