The massive elephant within the room, By Ehi Braimah

…it’s mistaken and superfluous to even recommend that those that criticise NNPCL are “deliberately mischievous” or “standing details on their heads” or “need to be within the good books of the general public.” Possibly Soneye doesn’t even know that the general public picture of NNPCL is in tatters – that’s if there’s nonetheless any semblance of any public picture left, other than the brilliant colors of its emblem, which was launched with a lot fanfare with billions of naira in a serious rebranding effort two years in the past, and regardless of how he tries to spin the NNPCL story, it’s going to all the time be a tough promote.

Not too long ago, Olufemi Soneye, the chief company communications officer of the NNPC Restricted, utilised his “right-of-reply” privilege to debunk the assertions made by Dr Muiz Banire, a Senior Advocate of Nigeria (SAN), when he described NNPCL because the “black gap of Nigeria” in an opinion piece.

To the perfect of my data, Dr Banire shouldn’t be the one one who is anxious concerning the state of affairs in Nigeria’s oil trade. A number of public affairs commentators and anxious Nigerians, in addition to stakeholders, have used the radio, tv, newspapers (print and on-line) and the social media to specific their views, both for or towards NNPCL – a fully-owned authorities oil firm. When is NNPCL – the large elephant within the room – going public?

I perceive Soneye’s troublesome place as spokesperson of NNPCL, however I’m positive many Nigerians will not be swayed or satisfied by his clarification. He tried to color an image of what’s going on at NNPCL, particularly on points regarding petrol shortage, which has grow to be a lifestyle for us, and the failed makes an attempt to take away subsidy funds previously.

Nevertheless, it’s mistaken and superfluous to even recommend that those that criticise NNPCL are “deliberately mischievous” or “standing details on their heads” or “need to be within the good books of the general public.” Possibly Soneye doesn’t even know that the general public picture of NNPCL is in tatters – that’s if there’s nonetheless any semblance of any public picture left, other than the brilliant colors of its emblem, which was launched with a lot fanfare with billions of naira in a serious rebranding effort two years in the past, and regardless of how he tries to spin the NNPCL story, it’s going to all the time be a tough promote.

I don’t envy Soneye, however he has a job to do. A really troublesome job certainly. This is similar oil firm that originally denied that it was owing suppliers when the story first broke. There was actually no level in being economical with the reality within the first place. However because it turned out, NNPCL admitted in an announcement that it was going through “monetary constraints,” and certainly petroleum merchandise suppliers have been being owed about $6.8 billion as a result of it pays to import these merchandise, slightly than making our refineries work.

This debt burden – amongst others – is liable for the lengthy and winding queues at petrol stations, the place productive man-hours are misplaced, with the ensuing unfavourable impact on our financial system. After mendacity shamelessly, NNPCL ought to apologise to Nigerians for its dangerous behaviour.

So, who’s liable for the perennial gasoline shortage? Who was additionally liable for importing dangerous petrol that broken our autos and turbines two years in the past? Had been there any sanctions or consequential administration?

Soneye can fee a notion audit on NNPCL and inform the entire world the findings. I’m not too positive he would fancy the report. He reacted to the views of Dr Banire and Pat Utomi, a professor political financial system, as a result of he couldn’t ignore them, understanding absolutely effectively that they’ve “robust” voices within the court docket of public opinion, along with their stature within the society as public intellectuals and thought leaders.

Soneye can’t, in good conscience, say that these two gents don’t know what they’re saying. NNPCL can’t rule out extra “vitriolic assaults” as the times go by; that will be mere wishful pondering when everybody is anxious about vitality safety. NNPCL is the one holding the keys and padlock to our oil quarters.

I don’t know whether or not Soneye was anticipating PUNCH to bathe praises on NNPCL or garland the oil operator with medals of extraordinary achievements within the newspaper’s editorial. Wouldn’t that be slightly farfetched? Does he really perceive the heritage and editorial coverage of the newspaper that’s over 50 years outdated?

The story of NNPCL will fill a e-book, and it might be a best-seller, relying on who the writer is. Whether or not NNPCL is a “cesspool of corruption” or a “hazard” to Nigeria, Soneye ought to perceive that Nigerians are uninterested in the shenanigans, and lack of transparency and accountability of the gasoline supplier of final resort.

Shortly earlier than former President Olusegun Obasanjo left workplace in 2007, he needed a remedy for a nagging migraine that had refused to go away. The migraine was recognized as Nigeria’s 4 moribund refineries. Based on Obasanjo, he invited Shell Petroleum to run the refineries, even with the supply of an fairness stake, however the oil large refused, citing causes that included large corruption within the oil trade.

Obasanjo’s nagging migraine elevated, however he couldn’t imagine his luck when Alhaji Aliko Dangote and Mr Femi Otedola, two outstanding billionaires, arrange Blue Star Consortium to amass stakes within the Port Harcourt and Kaduna Refineries – 51 per cent for Dangote and 21 per cent for Otedola. They have been able to “change the sport and rework Nigeria’s vitality panorama” for an funding of $750 million in each refineries.

The deal was made on Obasanjo’s watch just for it to be reversed by his successor, late Umaru Yar’Adua, in an “completely obnoxious” method, as Otedola described it.

When Obasanjo learnt of the reversal, he went to ask Yar’Adua – who was then President on the time – why he took the choice, thereby irritating the imaginative and prescient of Dangote and Otedola. Yar’Adua advised Obasanjo that the henchmen at NNPC and different vested pursuits assured him that they might repair the refineries. We at the moment are in 2024. Are the refineries working? That assurance given 17 years in the past entered a mysterious voicemail.

In a viral video, the late Chief MKO Abiola, who was the presumed winner of the annulled 12 June, 1993 presidential election, stated that he would demystify the “layers of thriller” round NNPC by making it extra clear and accountable after being sworn into workplace. Abiola promised to publish the worth of each day sale of Nigeria’s crude oil, however he died underneath mysterious circumstances as he fought to reclaim his mandate. That was 31 years in the past.

The testimonies of Obasanjo and Abiola are simply two examples that underscore the pressing must elevate the veil of opaqueness surrounding NNPCL. At a time Nigerians are struggling to outlive, one other layer of hardship was added – Nigerians in quest of petrol sleep at filling stations as a result of NNPCL can’t assure vitality safety.

The Guardian Weekend of seven–8 September did a superb reporting on NNPCL. Based on the newspaper, after spending about $3 billion on Flip Round Upkeep (TAM) on Nigeria’s 4 refineries within the final three years, NNPCL has not been in a position to give Nigerians one drop of petrol, but there are large wage payments and worker advantages paid yearly working into billions of naira. The failure of NNPC, and now NNPCL, it have to be said for the umpteenth time, is rooted in allegations of mind-boggling corruption, poor company governance and political interferences.

There are two refineries in Port Harcourt, one in Warri, and one in Kaduna. It was the 61-year-old Port Harcourt refinery that obtained approval of $1.5 billion in 2021 for whole rehabilitation. The Warri refinery is 46 years outdated, whereas the Kaduna refinery is 44 years outdated. The Kaduna and Warri refineries additionally obtained about $1.5 billion in 2021 after the Federal Govt Council (FEC) accepted the contract awards in August 2021. The 4 refineries have an put in capability of 445,000 bpd distributed as follows: Port Harcourt refineries (210,000 bpd), Warri (125,000 bpd), and Kaduna (110,000 bpd).

These refineries are simply waste pipes. Should you examine their file of money owed within the 2022 audited assertion of the corporate, the Port Harcourt refineries are owing N806 billon, the Warri refinery is indebted to the tune of N597 billion, whereas the Kaduna refinery is owing N487 billion. Even when the refineries have been shut down, the losses continued to mount. I’m positive Soneye will agree with me that it is a poor rating card by any customary. If NNPCL have been a non-public sector firm, all the administration would have been fired a very long time in the past.

“What’s the way forward for NNPC refineries?” The Guardian Weekend requested. Is there certainly a future after what we’ve witnessed within the final 40 years? The newspaper quoted Dr Muda Yusuf, the chief govt of the Centre for the Promotion of Non-public Enterprise (CPPE), as follows: “NNPC lacks the capability to successfully handle vital oil sector belongings, together with the refineries. The excessive requirements seen in different nationwide oil firms equivalent to Saudi Aramco and Petrobas are lacking in NNPC’s operations. Merely injecting extra money into the sector is not going to clear up its issues.”

Dr Yusuf went on to suggest that the Nigeria Liquefied Pure Fuel (NLNG) mannequin be adopted to handle the 4 refineries. Certainly, speaking about options, NNPCL shares must be listed on the inventory trade, the place authorities management must be diluted to no more than 25 per cent.

As of 2021, NNPCL had 7,338 employees. The 4 moribund refineries spend N68 billion yearly on salaries and over N500 billion on worker advantages in a single 12 months. In 2022, the worker advantages stood at N266.923 billion, but it surely rose dramatically to N583.797 billion in 2023 – that’s greater than double, a rise of about 118 per cent, in line with the audited statements launched final month.

The assertion additionally revealed that the corporate’s basic and administrative bills elevated from N1.704 trillion in 2022 to N2.991 trillion in 2023 – a rise of 70 per cent. Is that this how they spend our cash at NNPCL?

Nigeria is a serious oil producer with 4 refineries, however in almost 30 years, we’ve been importing petroleum merchandise which are closely subsidised. If Nigeria is flat broke right this moment, it’s primarily as a result of large subsidy rip-off and oil theft which are perpetrated by the enemies of Nigeria. Personally, I really feel ashamed that we’ve been unable to handle our oil belongings. Whereas monumental oil thefts, subsidy scams and smuggling have posed important challenges, NNPCL continues to multiply its personal issues.

The majority of our crude dedicated to ahead gross sales by NNPCL is creating provide challenges to native refineries with our each day oil manufacturing at only one.3 million bpd. Final 12 months alone, over N7 trillion was spent on subsidy funds, and this determine is more likely to go greater this 12 months. In six months from January to June, 2024, our petrol import invoice is already at N5.8 trillion.

NNPCL is now trying to find non-public companies (Operations and Upkeep (O&M) firms) to function the Kaduna and Warri refineries. That is like historical past repeating itself if we recall the Blue Star Consortium story, when the sale of each refineries to Dangote and Otedola 17 years in the past was reversed. I might be glad if the nationwide oil firm is ready to signal an O&M deal for the 2 refineries. By the way in which, we should thank Dangote Refinery for coming to the rescue of NNPCL after a collection of oily twists and turns.

Going ahead, NNPCL ought to flip a brand new web page, and deliberately search to have a clear break from the previous. For instance, as an alternative of constructing unrealistic projections, it’s higher for the refineries being rehabilitated and revamped to start operations earlier than any public bulletins are made. That strategy can be a greater public relations technique.

Soneye, be part of me and my colleagues as we advocate for a greater Nigeria. That’s what we’re doing underneath the auspices of Naija Occasions Journalism Basis (NTJF), the nonprofit arm of Naija Occasions, our on-line newspaper. We’re guided by three beliefs: constructing robust establishments, upholding the rule of regulation and defending the general public curiosity.

We should not have every other nation to name our personal, besides Nigeria. We should subsequently be part of palms within the process of nation-building and make Nigeria, the greenest nation in Africa, realise its full potential.

Ehi Braimah is a communications strategist and writer/editor-in-chief of Naija Occasions and Lagos Submit, and he might be reached at whats up@neomedia.com.ng.