The Nigerian National Petroleum Company Limited (NNPCL) faces increased scrutiny as the Extractive Industries Transparency Initiative (EITI) urges transparency regarding its 20% equity stake in the Dangote Petroleum Refinery.
During a visit to Nigeria, the EITI delegation emphasized the need for NNPC to provide comprehensive details about the valuation of its equity interest in the $20 billion refinery.
Alex Gordy, the EITI Technical Director, highlighted the lack of clarity surrounding NNPCL’s acquisition of the 20% stake and stressed the importance of accountability in the process.
The delegation expressed concerns about NNPC’s silence on critical aspects, including the equity mode of payment.
While it is public knowledge that NNPC plans to pay for the equity acquisition through crude oil deliveries, specific details about valuation at market rates and deductions from federal government revenues remain undisclosed.
Bady Balde, Deputy Executive Director of EITI, stated that the visit was prompted by the recent validation of Nigeria’s extractive industry and underscored the importance of a consistent National Stakeholders Working Group (NSWG) for effective engagement and validation assessment.
The absence of a stable NEITI board has been a significant concern, rendering NEITI data less meaningful without stakeholders’ engagement.
As NNPC faces pressure to enhance transparency and provide detailed information on the Dangote Refinery investment, the EITI’s call for accountability marks a pivotal moment in the country’s extractive sector.
The outcome of NNPC’s response will likely shape perceptions of transparency and governance within Nigeria’s crucial oil and gas industry.
