Global Transparency Body Urges NNPCL to Disclose Stake in Dangote Refinery

FG Owes NNPC ₦2.8trn Used For Petrol Subsidy

The Extractive Industries Transparency Initiative (EITI), a global organization promoting transparency, has called on the Nigerian National Petroleum Company Limited (NNPCL) to provide additional information regarding its 20% equity stake in the Dangote Petroleum Refinery.

The appeal was made during a visit by the EITI delegation to Nigeria, emphasizing the need for greater transparency surrounding NNPCL’s involvement in the $20 billion refinery project.

Alex Gordy, the Technical Director of EITI, addressed journalists at the headquarters of the Nigeria Extractive Industries Transparency Initiative in Abuja, expressing concerns about the lack of clarity on the valuation of NNPCL’s equity interest in the Dangote refinery. Gordy highlighted the importance of accountability in the disclosure of such details.

“NNPCL has acquired 20% 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 Alex Gordy.

The EITI representative called for transparency regarding the mode of payment for the equity, as currently, the public is only aware that NNPCL plans to pay for the acquisition with crude oil deliveries. Gordy raised questions about the valuation process, whether it would be based on market rates, different rates with petroleum supplies from NNPC, or NNPC’s oil production.

Bady Balde, Deputy Executive Director of EITI and a member of the delegation, explained that the visit to Nigeria was prompted by the recent validation of the country’s extractive industry. He highlighted the significant concern about the absence of a consistent National Stakeholders Working Group (NSWG) at NEITI (Nigeria Extractive Industries Transparency Initiative), which has hindered validation assessments.

“The vacancy was the issue of concern that led to this mission,” emphasized Bady Balde, emphasizing the importance of stakeholders’ engagement in making NEITI data meaningful and effective.

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