EITI to NNPC: Disclose details of 20% stake in Dangote refinery

The Extractive Industries Transparency Initiative (EITI) has demanded more clarification from the Nigerian National Petroleum Company (NNPC) Limited over its 20 percent equity in the Dangote Petroleum Refinery.

The transparency body made this known on Tuesday during a visit of the EITI delegation to Nigeria. 

Speaking to journalists at the Nigeria Extractive Industries Transparency Initiative (NEITI) headquarters, Abuja, Alex Gordy, EITI technical director, charged NNPC to be more transparent, as there are a lot of questions surrounding the company’s acquisition of 20 percent stake in the refinery.

“NNPCL has acquired 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,” he said. 

He said the oil firm should disclose the equity mode of payment, as all that was in the public domain was that NNPC 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,” he said.

“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?”

On his part, Mamadou Baldé, deputy executive director, EITI, said the delegation was in Nigeria due to the results of the most recent validation of the nation’s extractive sector.

He said the absence of a consistent NEITI board – national stakeholders working group (NSWG) — needs urgent attention, especially in terms of validation assessment.

“The reconstitution of the NEITI stakeholders working group (NSWG) is of much concern to us and the NSWG is at the core of the EITI process,” Baldé said.

“So while in Nigeria we hope to consult with relevant stakeholders to ensure the establishment of the national stakeholders working group.”

He said the NEITI data was meaningless without stakeholders’ engagement.

EITI had said Nigeria may be suspended if it fails to meet requirements for validation commencing January 1, 2026.