The Extractive Industries Transparency Initiative, a global transparency organisation, challenged Nigerian National Petroleum Company Limited on Tuesday with providing further information about its 20% stake in the Dangote Petroleum Refinery.
It issued the complaint during the EITI delegation’s visit to Nigeria, emphasising that NNPCL had yet to define its equity stake in the $20 billion refinery.
Alex Gordy, the EITI Technical Director, told journalists at the Nigeria Extractive Industries Transparency Initiative’s Abuja headquarters that the national oil firm should be more transparent, as there were many questions surrounding NNPCL’s acquisition of a 20% stake in the refinery.
He said, “NNPCL has acquired 20 per cent 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.”
He said the oil firm should reveal the equity mode of payment, as all that was in the public domain was that the national oil company would pay for the equity acquisition with crude oil deliveries.
“How is it supposed to be paid? For we know at this point it is to be paid from future oil deliveries.
“But how would that be valued at market rates and the different rates with those supplies of petroleum from NNPC and consistent deductions from the Federal Government revenues? Or will it be from NNPC oil production?” Gordy stated.
Another member of the delegation and Deputy Executive Director, EITI, Bady Balde, said the delegation was in Nigeria because of the outcome of the recent validation of the country’s extractive industry.
He pointed out that the absence of a consistent NEITI board – National Stakeholders Working Group (NSWG), had been a major drawback to the country, especially in terms of validation assessment.
‘The vacancy was the issue of concern that led to this mission,” he said, stressing that NEITI data was meaningless without stakeholders’ engagement.