NNPC sets sights on greater transparency, partners EITI

The Nigerian National Petroleum Corporation has joined a group of over 65 extractives companies, state-owned enterprises, commodity traders, and others that commit to observing the Extractive Industries Transparency Initiative’s supporting company expectations.

The NNPC said in a statement on Tuesday that the new status would require it to publicly declare support for the EITI Principles and help public debate and provide opportunities for sustainable development by promoting transparency throughout the extractive industries.

It is also expected to publicly disclose taxes and payments; ensure comprehensive disclosure of taxes and payments made to all EITI implementing countries; and publicly disclose beneficial owners and take steps to identify the beneficial owners of direct business partners, including Joint Ventures and contractors.

The corporation would also be required to engage in rigorous procurement processes, including due diligence in respect to partners and vendors; deliver natural resources in a manner that benefits societies and communities, and ensure that company processes are appropriate to deliver the data required for high standards of accountability.

“NNPC plays a vital role in Nigeria’s economy. Joining the EITI as a supporting company is a welcome step in the NNPC’s journey towards achieving greater transparency and to help ensure that Nigeria’s citizens benefit from their natural resource wealth,” EITI Board Chair, Rt Hon. Helen Clark, said.

The Minister of Finance, Budget and National Planning and former EITI Board member, Zainab Ahmed, said increased transparency of the national oil company’s revenues was contributing to improvements in the country’s domestic resource mobilisation efforts.

The NNPC has recently taken measures to become more transparent. In June 2020, it published audited account for 20 of its subsidiaries, in addition to publishing its monthly financial and operations report.

According to the statement, the corporation is working with the Nigeria EITI on an action plan to routinely disclose information and currently publishes some of the data required by the 2019 EITI Standard on its website.

The Group Managing Director at NNPC, Mele Kyari, said becoming an EITI supporting company aligned with the NNPC’s corporate vision and principles of transparency, accountability and performance excellence.

He said, “Our partnership with NEITI and EITI strengthens our commitment towards commodity trading transparency, contract transparency and systematic disclosure of revenues and payments.

“We are on a journey towards greater transparency and look forward to deepening our collaboration with the EITI to further this work.”

NEITI Executive Secretary, Waziri Adio, commended NNPC’s move to support the EITI.

He said, “NNPC joining the EITI as a supporting company is a major inflection point in the quest for transparency – for the company, for Nigeria’s oil and gas sector, and for the country as a whole.

“This is so given how critical NNPC is to the sector and to the country. NEITI welcomes this bold commitment. We will continue to work and walk with NNPC to translate its espoused commitments to transparency and accountability into concrete and sustained actions and results.”