TheCable

The Nigeria Extractive Industries Transparency Initiative (NEITI) says it expects the new Dangote refinery to comply with the extractive industry principles of contributing to sustainable economic growth.

The institution also asked the company to “distance itself from a monopolistic business model”.

Ogbonnaya Orji, the executive secretary of NEITI, said the multibillion-dollar refinery, inaugurated by President Muhammadu Buhari in Lagos, would go a long way in solving the country’s perennial fuel problem.

Orji, in a statement by Obiageli Onuorah, NEITI’s head of communications and stakeholders management, described the development as a huge national relief as it came at a time when the country is considering removing the petrol subsidy.

“We welcome with high expectations the completion and commissioning of the multibillion-dollar Dangote Refinery by President Muhammadu Buhari, in Lagos,” the statement said.

Orji said apart from the huge revenue losses, NEITI’s independent report on subsidy payments between 2005 to 2021 had disclosed that over N13.7 trillion has been expended on subsidies, capital flight, and other numerous challenges over fuel importation.

He said the takeoff 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 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.

“The executive secretary projects that the commissioning of the Dangote refinery will end fuel importation in Nigeria and subsequently save the nation the over $7.3 billion projected to be spent on fuel subsidy in the first half of the year 2023.”

The NEITI boss, however, said the organisation expects the refinery to fully comply with the principles of the Extractive Industries Transparency Initiative (EITI) which the country is a signatory.

“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 percent equity interest that the NNPC has taken in the refinery on behalf of the federation,” he added.

Orji also asked that the conglomerate distance itself from a “monopolistic business model” and embrace corporate social responsibility, openness, and accountability which allows for civic engagement and free enterprise.