Lack of Transparency in Oil Sector Deals Raises Concerns, Says Public Analyst
Public analyst, Adeniyi Kunuyi, criticised the lack of transparency in Nigeria’s oil sector, pointing out the unclear pricing mechanisms in deals between the NNPC and Dangote’s refinery.
Kunuyi expressed concern over the opaque nature of transactions involving crude oil pricing during a discussion on Channels TV’s Sunrise Daily on Tuesday, particularly highlighting the NNPC’s failure to disclose the terms under which Dangote lifts crude and the corresponding exchange rates.
He argued that transparency is a fundamental expectation in global oil markets, yet the Nigerian National Petroleum Corporation Limited (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 NNPC and of course Dangote Refinery. NNPCL has not been able to tell us clearly the cost at which Dangote lifted his crude and the amount paid so far by Dangote and the exchange rate. It is not possible anywhere in the world when anybody wants to talk about crude oil resell 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, calling for greater accountability from NNPCL. While Dangote’s refinery has set a price of $898 for refined products, the public remains in the dark about key financial details.
The analyst also questioned why the federal government allows NNPCL to remain the sole buyer from Dangote’s 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 the federal government’s approach to market liberalisation has been flawed, citing that the administration has failed to properly engage key stakeholders since NNPCL took control.
“The entire process of liberalising the petroleum industry has been mishandled,” Kunuyi concluded, emphasising the need for reforms that prioritise transparency, competition, and proper regulation of the market.
