Within the face of the challenges within the oil sector, significantly the present tightness within the provide of petrol, it has turn out to be modern in charge the nationwide oil firm, the Nigerian Nationwide Petroleum Firm Ltd (NNPC Ltd), for every little thing. Final week, it was Prof. Pat Utomi who railed and fumed on the NNPC Ltd calling it one of the vital opaque and unreliable corporations on the earth. Earlier than then, The Punch had printed an editorial wherein it described the NNPC Ltd as a hazard to Nigeria. The most recent of those vitriolic assaults is by Dr. Muiz Banire, a Senior Advocate of Nigeria (SAN), and former Commissioner of Transport and Setting, Lagos State, who contended in his column in The Solar that NNPC Ltd is the black gap of Nigeria.
Contemplating all that is happening within the petroleum sector, it will seem justifiable to name out the NNPC Ltd as some individuals have been doing in latest instances. However a lot of the diatribes have been primarily based on sentiments that aren’t rooted in details. Railing on the NNPC Ltd and not using a thorough understanding of the problems that threw up the present challenges within the oil sector, as a lot of the commentators have been doing, will yield no good for the nation. At this crucial intersection, the duty for all well-meaning Nigerians must be how you can discover lasting options to the mischiefs within the oil sector and to not search for scapegoats, as Dr. Banire has achieved.
In line with Banire, Nigeria has been experiencing gasoline shortage since 1973 on the again of gasoline subsidy and the NNPC Ltd is liable for it. The assertion that the NNPC is liable for this state of affairs is moot. The coverage of gasoline subsidy isn’t the protect of the NNPC. Numerous administrations over time have thought it sensible to subsidize the price of petroleum merchandise for residents. They got here up with completely different strategies of doing that. The position of NNPC Ltd has been to implement the coverage as determined by authorities. At a degree when the varied administrations felt that the gasoline subsidy coverage had turn out to be a burden that must be achieved away with, they made it identified. NNPC Ltd, because the nationwide oil firm, carried out it. This was the case in 2012 when the nation went up in protest towards the choice of presidency to take away gasoline subsidy. The identical state of affairs repeated itself in 2019 when the then administration got here up with the coverage to take away gasoline subsidy. NNPC Ltd is neither liable for the coverage of gasoline subsidy or its elimination.
It is rather unlucky that Dr Banire would descend to the extent of castigating the NNPC Ltd for the gasoline subsidy debacle that has plagued Nigeria and on the idea of that label the Firm that has over time patriotically borne the brunt of the gasoline subsidy coverage as a black gap. His evaluation fails to consider the massive challenges of merchandise smuggling, pipeline vandalism, and crude oil theft that the corporate contends with each day, and despite which it manages to maintain the nation going with crude oil manufacturing and gasoline provide.
Barely three months after the Federal Authorities introduced the elimination of gasoline subsidy, it grew to become tough for each main and impartial petroleum merchandise entrepreneurs to import petrol due to the overseas trade coverage. They may not supply foreign exchange to proceed to usher in petrol. Since then, NNPC Ltd has been importing the product and promoting at nearly half value consistent with the provisions of the Petroleum Business Act (PIA) which designates it because the gasoline provider of final resort. Sure, there have been provide hiccups right here and there due to the monetary constraints imposed by the transaction. Simply think about the hardship the nation would have suffered if NNPC Ltd was not there to play the position of provider of final resort! NNPC Ltd is the rationale Nigerians proceed to get pleasure from decrease pump value for petrol than they might ordinarily pay for the product. How then does such an organization turn out to be a black gap?
For Banire, NNPC Ltd is liable for every little thing that’s fallacious within the oil sector. He even blames smuggling and the unauthorized sale of petroleum merchandise to road urchins who in flip commerce it within the black market in jerrycans on the NNPC Ltd. However does he have proof that the unpatriotic entrepreneurs who divert petroleum merchandise meant for native consumption to neighbouring international locations are employees members or representatives of the NNPC Ltd? Does he have any shred of proof that the boys who promote gasoline within the black market in jerrycans supply their merchandise from NNPC Retail Ltd.’s stations? The least one would count on from a lawyer of Banire’s standing is a fact-based and never speculative commentary.
The NNPC Ltd has turned a nook since 2018 when it started to organize for the enactment of the Petroleum Business Act, which was ultimately handed into legislation in 2021. Other than deepening its dedication to accountability and transparency by often publishing its audited annual monetary statements, it has turn out to be a worthwhile firm with undisputable progress trajectory. It recorded an unprecedented N3.29 trillion revenue in its not too long ago launched 2023 audited monetary report. However this reality is conveniently misplaced on Dr. Banire who insists that he has not seen any distinction between NNPC as company and the commercially targeted NNPC Ltd that was integrated in 2021. Happily, it doesn’t take Banire to see or imagine that NNPC Ltd, as presently constituted, has damaged away from its debilitating previous for it to be true. He’s at house with the authorized maxim: “Res Ipsa Loquitur”, which means the details converse for themselves.
Whereas one can not dissuade individuals like Dr. Banire from criticizing the NNPC Ltd, they need to chorus from standing details on their heads all as a result of they need to be populist or be within the good books of the general public. In addition to, the Banires of this world must also not be deliberately mischievous of their assertion that the NNPC Restricted is exercising an overbearing affect on the regulators. One expects that given the extent of their academic accomplishments, they need to have the capability to analysis very nicely into the topic issues of their editorial interventions in order that they don’t argue, assert and progress in error(s). Within the corollary, it’s both Banire is mischievous or ignorant in regards to the assertion he made in his write-up that the NNPC influences the the Nigerian Upstream Petroleum Regulatory Fee (NUPRC) and the Nigerian Midstream Downstream Petroleum Regulatory Company (NMDPRA) who’re the 2 impartial regulators. If he lacks a transparent information of the workings of the sector, he must be humble sufficient to hunt clarifications so he could possibly be nicely knowledgeable. NNPC Restricted is an operator-with various refineries below its purview. The Port Harcourt refinery will quickly take off. As a matter of reality, the refineries below the NNPC are operators and are subsequently topic to the regulatory framework and laws set out by the NMDPRA. The operator(s) can not, subsequently, train overbearing affect on the regulators. That is commonsensically unattainable. Pure and easy.
Soneye, is the Chief Company Communications Officer of the NNPC Ltd
