As part of its commitment to deepen oil industry accountability and transparency, the Nigerian National Petroleum Corporation (NNPC) has disclosed that it had become an Extractive Industries Transparency Initiative (EITI) partner in line with its drive to reposition the national oil company for global acceptable standards practice.
It explained that joining a group of over 65 extractives companies, state-owned enterprises (SOEs), commodity traders, financial institutions, and industry partners who commit to observing the EITI’s supporting company expectations was a reflection of the company’s commitment to redirect its affairs through transparency and accountability.
As gathered, the new status would require that NNPC publicly declare support for the EITI principles and, by promoting transparency throughout the extractive industries, help public debate and provide opportunities for sustainable development, publicly disclose taxes and payments, and ensure comprehensive disclosure of taxes and payments made to all EITI implementing countries.
Others are to publicly disclose beneficial owners and take steps to identify the beneficial owners of direct business partners, including joint ventures and contractors, 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.
Confirming the development, NNPC Managing Director, Mele Kyari, said that the new move would augment the company’s effort in keeping the public informed about its activities as part of efforts to be accountable to Nigerians.
Through a statement by the NNPC Spokesman, Dr. Kennie Obateru, Kyari revealed that national oil company would work with Nigeria EITI (NEITI) on an action plan to routinely disclose information and publish some of the data required by the 2019 EITI Standard on its website.
“Becoming an EITI supporting company aligns with NNPC’s corporate vision and principles of transparency, accountability, and performance excellence. 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,” the statement read.
On his part, EITI Board Chairman, Helen Clark, said that the move demonstrates NNPC’s commitment to its journey to becoming a more transparent national oil company and that such would give further impetus to NNPC’s corporate vision of greater transparency and 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,” the statement quoted her as saying.
Similarly, NEITI Executive Secretary, Waziri Adio, while commending NNPC’s move to support the EITI 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.”