Global body, Extractive Industries Transparency Initiative (EITI), has called on the Nigerian National Petroleum Company Limited (NNPCL) to open up on its investment of 20% equity in Dangote Petroleum Refinery.
The international watchdog organization on extractive industries transparency and accountability made the call on Tuesday during EITI delegation visit to Nigeria.
Addressing Journalists in Abuja, EITI Technical Director, Alex Gordy said NNPCL is yet to clarify it’s equity interest in the Dangote refinery.
He called on the state-owned company to state the valuation of the equity in the Dangote Refinery for the purpose of accountability.
Gordy said, “The question of Dangote Refinery: 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.”
Continuing, the Regional Director asked NNPCL to reveal the equity mode of payment.
He said all that is in the public domain is that NNPC will pay for the equity acquisition with crude oil deliveries.
Gordy further raised question on how the crude oil supply and consistent deduction will be valued at market rates.
He also raised questions where the deduction will be from the Federal Goverment revenue or NNPCL oil production.
“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?”
Besides, he also raised questions about the $3.8billion loan deal between NNPCL and the Afrexim Bank.
He urged NNPC to explain the interest rate of the loan and the mode of repayment.
The Technical Director sought the oil company’s explanations on whether the repayment will be at the prevailing market conditions.
He said , “But also on the other Afrexim Bank loans, most recently, we’ve seen in the press a 3.8 billion US dollar loan from Afrexim Bank and again, the question is at what valuation? What interest rates and the modalities of repayments?”
According to him, the fundamental objective of the disclosures is to inform the public on whether that is a fair deal for the government.
The EITI urged President Bola Tinubu to urgently constitute the new board of the Nigeria Extractive Industries Transparency Initiative, NEITI, to ensure that the agency continues its quest for transparent and accountable management of Nigeria’s natural resource revenues.
The Executive Secretary of NEITI, Dr. Orji Ogbonnaya Orji told the EITI delegation of the agency’s resolve to ensure transparency and accountability in the oil and gas as well as the solid minerals sectors.
