The Nigerian National Petroleum Corporation (NNPC) is about to allocate several hundred thousand barrels per day of the country’s oil to new “direct sale of crude oil and direct purchase of products” (DSDP) contracts with private companies.
This briefing argues that, currently subject to limited regulation and even fewer reporting requirements, companies engaged in physical commodity trading of oil, gas and minerals should be required to publicly report on their transactions with government entities.
Nigeria's national oil company, the Nigerian National Petroleum Corporation (NNPC), sells around one million barrels of oil a day, or almost half of the country's total production. NNPC oil was worth an estimated $41 billion in 2013, and constitutes the government's largest revenue stream.
In an analysis in the journal "Current History," RWI Research Associate Alexandra Gillies and Northwestern professor Richard Joseph survey the political turmoil in Nigeria during the illness of late President Umaru Yar’Adua, detailing the uncertainty among Nigerian leaders and the ways in which political tumult slowed action on vital issues such as crippling infrastructural deficit, local confict, oil sector reform, and the rehabilitation of democratic institutions in preparation for the 2011 elections.
Revenue Watch urges the government of Nigerian President Olusegun Obasanjo to enact revenue transparency reforms, including most notably the Nigerian Extractive Industries Transparency Initiative (EITI) bill, the Fiscal Responsibility bill, and the Freedom of Information bill.