Former Nigerian Vice President Atiku Abubakar has urged the swift listing of the Nigerian National Petroleum Corporation Limited (NNPCL) on the stock exchange, emphasizing the need for compliance with the Petroleum Industry Act.
Atiku’s comments come in response to NNPCL’s recent decision to transfer the management of the Warri and Kaduna refineries to private operators. He stated, “According to the Petroleum Industry Act, the NNPCL should already be listed on the stock exchange. This step would not only boost profitability but also improve transparency and corporate governance.”
He criticized the current state of the NNPCL, asserting, “While it claims to be a private entity, this is merely an illusion designed to mislead the gullible, as it continues to serve as a financial lifeline for the Federal Government. Failing to list the NNPCL on the stock exchange is merely a superficial change,” he remarked.
Atiku further expressed concerns that the NNPC Limited is providing political cover for inconsistencies in government policies regarding subsidy payments, questioning the independence that the Petroleum Industry Act mandates for the NNPC Limited as a private entity.
As the PDP’s presidential candidate, he highlighted the historical failures in previous arrangements and concessions due to a lack of transparency in the contracting process and the government’s inability to attract investors.
He emphasized that for any privatization deal to succeed, the Bureau of Public Enterprise (BPE) and a reputable technical partner like Standard and Poor’s must be involved. “Former President Olusegun Obasanjo recently noted that even Shell, one of the richest oil companies globally, declined the opportunity to operate Nigeria’s refineries due to the long-standing corruption issues within the NNPCL,” Atiku added.
He pointed out that over $20 billion has been spent on the refineries over the past two decades without yielding results, questioning the logic of a government still paying petrol subsidies while trying to ensure refinery profitability. “Who would invest in a refinery designed to run at a loss?” he asked.
Atiku challenged the viability of the NNPC’s latest strategy, recalling past failures in similar management arrangements. He cited the unsuccessful partnership with Manitoba Hydro International for the Transmission Company of Nigeria and the lack of profitability from Global Steel Limited’s management of the Ajaokuta Steel Company. “In fact, the contract was controversially revoked by the Yar’Adua administration, leading to Nigeria compensating Global Steel nearly $500 million while Ajaokuta remains inactive 17 years later,” he said.
He concluded by advising the NNPCL to avoid making the contract process as opaque as it did with OVH last year, which not only lacked credibility but also failed to resolve the ongoing fuel scarcity issues in the country.
