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Afreximbank Loan of $3.3 billion: NEITI and NNPC’s Joint Committee
Afreximbank Loan of $3.3 billion: NEITI and NNPC’s Joint Committee
The Nigerian National Petroleum Corporation (NNPC Limited) and the Nigeria Extractive Industries Transparency Initiative (NEITI) have decided to establish a joint committee to look into the specifics of the $3.3 billion loan that was given by the African Export-Import Bank (AfreximBank). This cooperative effort’s main goal is to guarantee thorough disclosures and openness regarding the loan transaction. NewsReport gathered
This decision follows mounting pressure from the global Extractive Industries Transparency Initiative (EITI), which has raised concerns regarding the perceived lack of transparency and accountability enveloping the aforementioned loan transaction. The $3.3 billion loan was secured utilizing future crude oil production as the administration of President Bola Tinubu endeavors to bolster the value of the Naira through increased dollar supply.
However, while the NNPC revealed that the loan would be repaid using future crude production, critical details such as the quantity of crude oil and the repayment duration were not disclosed. Executive secretary of NEITI Dr. Orji Ogbonnaya Orji stressed the need for accountability and transparency, adding that the joint committee with NNPC Limited was formed after talks between top NNPC Limited management, headed by Group CEO Mele Kyari, and visiting delegates from the global EITI.
Dr. Orji further articulated, “What we agreed yesterday was to have a joint committee between NEITI and NNPC on these specific issues that are of concern in the international validation report. The NNPC chief executive has accepted that, and on our part, we will be sending requests to put that committee in place. The committee will be working with experts from both sides, and where necessary, we will be relying on our international secretariat for guidance to ensure that our next reports for 2022 and 2023, set to be released on September 24 this year, will unveil details of this information.”
Moreover, Bady Balde, the deputy executive director of the EITI delegation, highlighted the necessity for Nigeria to reconstitute the board of NEITI, known as the National Multi-Stakeholders Group, and cease political interference in its operations. Balde underscored that Nigeria was already in breach of the global EITI standards and cautioned that action might be taken against the country if the current situation persisted. He emphasized the importance of upholding the tenure of NEITI as specified in the NEITI Act.
When questioned about the potential sanctions for failing to reconstitute the NEITI board, Balde emphasized the urgency of the matter, emphasizing that while a specific deadline was not imposed, the situation demanded immediate attention. He stressed that the existence of the Multi-Stakeholder Group is a fundamental requirement for EITI membership and that Nigeria’s recurrent vacancies in the NEITI board over the past three years have put the country in breach of the EITI Standard.
The establishment of the joint committee between NEITI and NNPC signifies a proactive step toward addressing the concerns raised by the global EITI and fostering transparency and accountability within Nigeria’s extractive industries. The collaborative effort to unravel the details of the $3.3 billion Afreximbank loan demonstrates a commitment to upholding international transparency standards and ensuring that future reports provide comprehensive insights into the pertinent information.
As the committee begins its work, it is imperative for both NEITI and NNPC to leverage the expertise of their respective teams and, where necessary, seek guidance from international bodies to ensure that the disclosures surrounding the loan transaction are thorough and transparent. Additionally, the urgency of reconstituting the NEITI board cannot be overstated, as it is a crucial element in upholding Nigeria’s commitment to the global EITI Standards.
In conclusion, the collaborative efforts between NEITI and NNPC, coupled with the imperative need to reconstitute the NEITI board, underscore the significance of transparency and accountability within Nigeria’s extractive industries. By addressing these critical issues, Nigeria can reinforce its commitment to international transparency standards and pave the way for a more transparent and accountable extractive industry sector.
