Analyst Calls For Transparency In Dangote And NNPCL Transactions

Analyst Calls For Transparency In Dangote And NNPCL Transactions

Public analyst, Adeniyi Kunuyi, has criticised the lack of transparency in Nigeria’s oil sector, pointing out the unclear pricing mechanisms in deals between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery raises concerns.

Kunuyi, who was a guest on Channels Television’s Ireporteronline programme on Tuesday, faulted the opaque nature of transactions involving crude oil pricing between the Dangote Refinery and the NNPCL.

He argued that transparency is a fundamental expectation in global oil markets, yet the NNPCL has not provided critical information, such as the cost Dangote Refinery pays for crude oil or the exchange rates applied.

“The price of crude, if we look at the latest debacle between the NNPCL and of course Dangote Refinery, NNPCL has not been able to tell us the cost at which Dangote lifted his crude, the amount paid so far by Dangote and the exchange rate.

“It is not possible anywhere in the world that anybody talks about crude oil resale and not talk about the exchange rate and what was charged. This is a disservice to the Nigerian people, the rightful owners of the crude oil,” Kunuyi stated.

The analyst also questioned why the Federal Government allowed NNPCL to be the sole off-taker of petrol produced at the Dangote Refinery, suggesting that this undermines the spirit of the Petroleum Industry Act, which was meant to liberalise the sector.

“If the naira is to appreciate, we must allow other players into the market and let market forces determine prices, not government interference,” he argued.

He further noted that FG’s approach to market liberalisation has been flawed, citing that the current administration has failed to properly engage key stakeholders since NNPCL took control.

“The entire process of liberalising the petroleum industry has been mishandled,” he said, emphasising the need for reforms that prioritise transparency, competition, and proper regulation of the market.