The Nigerian National Petroleum Corporation (NNPC) and other National oil companies failed to disclose information critical to the oversight of public revenues and these National Oil Companies, with $3.1 trillion in assets, are dangerously under-scrutinised.
The Natural Resource Governance Institute (NRGI), which declared this in a new report, maintained that State-owned enterprises could weigh a country down or help propel development.
NRGI president and CEO, Daniel Kaufmann, said at the launch of the report in Washington DC: “In dozens of resource-rich countries, national oil companies are at the centre of determining the quality of governance of their macro economy and of their natural resources, which belong to the people.
“In these countries, improving governance is the development challenge of a generation, as subpar governance of their national resources perpetuates poverty and inequality.
“State-owned enterprises can weigh a country down or help propel development. Getting their governance right is crucial,” Mr. Kaufmann said.
The launch of the report entitled: “National Oil Company (NOC) database” was a part of NRGI’s goals to fill the gaps in knowledge and understanding of the growing amount of information about natural resource governance globally.
“Without solid information, governments, oversight bodies and market players struggle to assess NOC performance and develop strategies for how these influential entities can generate greater benefits for citizens.
“To help address this gap, the institute assembled a database on NOC production, revenue generation, fiscal transfers to the state, and operational and financial performance that cover 71 companies headquartered in 61 countries worldwide, from 2011 to 2017,” the report read.
NRGI advisor, Patrick Heller, in his presentation to stakeholders, emphasised that data on NOCs matter due to the huge influence of these NOCs in the revenue and control of natural resource reserves.
SOURCE: operanews.com