The Nigeria Extractive Industries Transparency Initiative, NEITI, has disclosed that the newly built 650, 000 barrels per day Dangote Refinery would end the importation of petroleum products and save Nigeria $7.3 billion projected for petrol subsidy in the first half of the year 2023.
NEITI Executive Secretary, Dr. Orji Ogbonnaya Orji in a statement in Abuja, Tuesday, described the inauguration of the $18 billion refinery as a huge national relief.
According to him, “NEITI as a member of the global Extractive Industries Transparency Initiative 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.
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“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”.
He lauded “the determination, courage and the huge confidence demonstrated by Alhaji Aliko Dangote in the huge investments in the downstream sector which will address the issues of product availability, job opportunities and value creation.
Dr Orji stated that NEITI expects the Dangote refinery to fully comply with the principles of the Extractive Industries Transparency Initiative (EITI) which Nigeria is a signatory.
He noted that 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 advised the conglomerate to distance itself from a monopolistic business model and embrace corporate social responsibility, openness and accountability which allows for civic engagement and free enterprise.
(Vanguard)
