Dublin, Ireland — The Nigeria Extractive Industries Transparency Initiative, NEITI, said it would be meeting with the management of Dangote Refinery to clarify issues around the Federation’s 20 per cent investment in the recently commissioned 650,000-barrels-per-day refinery.
In a statement in Abuja, Executive Secretary of NEITI, said the Federation’s stake in the refinery was taken up by the Nigerian National Petroleum Company Limited, NNPCL.
He cautioned the management of the refinery to adopt accountability and good corporate governance principles in its operations, while also shunning monopolistic practices.
He said: “As a major player in the oil and gas industry, NEITI will soon commence engagements with the Dangote Refinery on the specific issues around the 20 per cent equity interest that the NNPC has taken in the refinery on behalf of the Federation.
“The conglomerate is advised to distance itself from a monopolistic business model and embrace corporate social responsibility, openness and accountability which allows for civic engagement and free enterprise.
Orji described the completion and commission of the refinery as a huge national relief, stating that it welcomed with high expectations the completion and commissioning of the multi-billion-dollar facility by President Muhammadu Buhari.
The Executive Secretary expressed optimism that the commissioning of the Dangote refinery would not only end fuel importation in Nigeria but would also save the country the over $7.3 billion projected to be spent on fuel subsidy in the first half of 2023.
To this end, Orji stated that NEITI expects the Dangote refinery to fully comply with the principles of the Extractive Industries Transparency Initiative, EITI, of which Nigeria is a signatory.
He said: “NEITI as a member of the global Extractive Industries Transparency Initiative, EITI, with domestic responsibility to enthrone transparency and accountability in the oil gas and mining sectors, is delighted that the Dangote Refinery is coming on stream at a time when public debates on the removal of fuel subsidy have taken a centre stage in public discourse.
“Apart from the huge revenue losses, (NEITI’s Independent extractive industry report on subsidy payments between 2005 to 2021 disclosed over N13.7 trillion naira as having been expended on subsidies), capital flight and other numerous challenges over fuel importation, the take-off of Dangote Refinery with 650,000 barrels daily refining capacity will largely address Nigeria’s domestic demands for refined petroleum products within the short and medium term.
“NEITI salutes the determination, courage and the huge confidence demonstrated by Alhaji Dangote in the huge investments in the downstream sector which will address the issues of product availability, job opportunities and value creation.”
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