Page 8 - AfrOil Week 43 2022

AfrOil POLICY AfrOil

Nigeria must become more transparent

about oil sector to prosper, IMF says

NIGERIA NIGERIA must be more transparent about the NNPCL has come under increased scrutiny
state of its oil and gas sector if it wants to become since its incorporation as a limited liability com-
more prosperous, the International Monetary pany in September, especially in light of Nigeria’s
Fund (IMF) has said. decreasing crude production and the drop in oil
In a recently released report, the IMF noted export revenues, despite increased petroleum
that the newly restructured state oil and gas prices on global markets. The state-owned com-
champion, Nigerian National Petroleum Co. Ltd pany has also been unable to stop rampant oil
(NNPCL), must make transparency a priority in theft.
its reporting. One of its responses to these shortcomings
“Strengthening transparency is crucial if has been to make changes in its management
Nigeria is to receive maximum benefits from the ranks. The company was restructured earlier
oil and gas sector,” the report says. “In line with this month in order to add an additional five vice
good practices, it is important for [NNPCL] to presidents to the management roster.
disclose all revenue transfers and remittances The new appointees, some of whom also
to the federation account by providing com- serve as executive directors of NNPCL, have
plete and timely information that ensures the been charged with improving the firm’s perfor-
accountability of its receipts and expenditures.” mance. ™
The report, titled “Good Governance in
Sub-Saharan Africa: Opportunities and Les-
sons,” also emphasised the need to strengthen
oversight over NNPCL itself. The national
oil company should be under the mandate of
the auditor-general to verify that spending is
in accordance with the Ministry of Finance’s
instructions, the document said.
“The Nigerian authorities must acceler-
ate their anti-corruption efforts to maintain
momentum against both entrenched challenges
and evolving threats,” it added.
Additionally, it said, the company should con-
sider enhancing and integrating its transparency
practices to include reporting on environmen-
tal, social and governance (ESG) considerations. The IMF report stressed the need for oversight of NNPCL itself (File Photo)

London court rejects Nigeria’s claim for

compensation over Glencore bribery

NIGERIA LONDON’S Southwark Crown Court has investigation.
rejected the Nigerian federal government’s The probe formed part of a series of global
attempt to claim compensation from Glencore investigations that Glencore has put aside
over bribes that the Anglo-Swiss commodities $1.5bn to settle.
trader paid to oil sector officials, Reuters has Now, Abuja believes it should be permit-
reported. ted to address the court in order to claim
On November 2 and 3, Glencore subsidiary compensation.
Glencore Energy is due to be sentenced after it However, Southwark Crown Court’s Judge
pleaded guilty in June to seven counts of brib- Peter Fraser has rejected Nigeria’s claim, stating
ery in five different African countries, including that only the SFO and the defence are allowed to
Nigeria, following a UK Serious Fraud Office make arguments.

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