The Extractive Industries Transparency Initiative (EITI), a global transparency body, has called upon the Nigerian National Petroleum Company Limited (NNPC) to provide additional details regarding its 20 percent equity stake in the Dangote Petroleum Refinery.
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The EITI delegation delivered this charge during its visit to Nigeria, emphasizing the need for transparency in NNPC’s acquisition of the stake in the $20 billion refinery.
Addressing journalists at the Abuja headquarters of the Nigeria Extractive Industries Transparency Initiative (NEITI), Alex Gordy, the EITI Technical Director, highlighted the lack of clarity surrounding NNPC’s equity interest in the Dangote refinery. He emphasized the importance of accountability in shedding light on the valuation of the acquired equity interest.
“NNPCL has acquired a 20 percent equity interest in the Dangote refinery. However, it has not explained what is the valuation of the equity interest in the Dangote refinery. So the key factor here is accountability,” stated Gordy.
The EITI Technical Director called for transparency regarding the mode of payment for the equity, as currently, the information available to the public is that NNPC will pay for the acquisition with crude oil deliveries. Gordy questioned the valuation process, whether it would be based on market rates, different rates with petroleum supplies from NNPC, or from NNPC oil production.
Bady Balde, Deputy Executive Director of EITI, and another member of the delegation highlighted the reason for the visit to Nigeria, linking it to the recent validation of the country’s extractive industry. He expressed concern about the absence of a consistent NEITI board, known as the National Stakeholders Working Group (NSWG), and its impact on the validation assessment.
“The vacancy was the issue of concern that led to this mission,” said Balde, emphasizing that NEITI data lacked meaning without active stakeholders’ engagement. The delegation’s visit underscores the global push for transparency and accountability in the extractive industry, urging Nigerian authorities to provide clear and comprehensive information on the NNPC’s stake in the Dangote Petroleum Refinery.
Oreoluwa is an accountant and a brand writer with a flair for journalism.
