List NNPCL on the Nigeria Stock Exchange, Atiku tell Tinubu

Atiku Abubakar, the presidential candidate of the Peoples Democratic Party for 2023, has urged President Bola Tinubu’s administration to list the Nigerian National Petroleum Corporation Limited on the Nigeria Stock Exchange as soon as possible.

According to the former vice president, this action complies with the requirements of the Petroleum Industry Act.

Following NNPCL’s recent decision to hand over control and management of the refineries in Warri and Kaduna to private operators, Atiku made this demand.

Atiku underlined in a statement released on Sunday by his media advisor, Paul Ibe, that NNPCL need to be listed on the stock exchange in accordance with the Petroleum Industry Act.

“Currently, the NNPCL claims to be private, but this is only a ruse to fool the feeble-minded because it remains the ATM of the Federal Government. Anything short of listing the NNPCL on the stock exchange is nothing but a cosmetic development,” he added.

He explained that this move would improve profitability, transparency, and corporate governance.

The statement read in part, “The Peoples Democratic Party (PDP) Presidential candidate said previous arrangements and concessions had not worked because of a lack of transparency in the contract award process as well as the failure of the government to attract investors.

“The former Vice President said that for such a deal to succeed at all, the Bureau of Public Enterprise (BPE) and a credible technical partner like Standard and Poor’s must be part of the process.

“Former President Olusegun Obasanjo revealed recently that even Shell, one of the world’s wealthiest oil companies, rejected the offer to operate Nigeria’s refineries. This is because the NNPCL has, for years, been a cesspool of endemic corruption.

“This is why over $20bn that has been spent on the refineries in the last 20 years has led to nowhere. It is also curious that a government that is still paying petrol subsidies is trying to make its refineries profitable. Which businessman will invest in a refinery that has been programmed to operate at a loss?”

Atiku questioned the viability of the NNPC’s new plan, noting that similar arrangements in the past had not been successful or profitable.

The Waziri Adamawa urged NNPCL to avoid making the contract process opaque as it did with OVH last year, which proved dubious and did not resolve the ongoing fuel scarcity.

He continued, “The management and operating approach has not always worked. The Manitoba Hydro International, which was handed to the Transmission Company of Nigeria, led to nowhere. Similarly, Global Steel Limited, which was handed to the Ajaokuta Steel Company, was not able to make the facility profitable.

NNPC tower

“The contract was questionably revoked by the Umaru Musa Yar’Adua administration, and Nigeria ended up paying Global Steel a compensation of nearly $500m while Ajaokuta remains comatose 17 years later.

“In 2022, Nueoil, an unknown and newly registered company, acquired OVH and Oando filling stations. Barely four months later, NNPCL Retail bought Nueoil and took control of all its assets, including the Oando filling stations.

“Barely eight months later, OVH turned around to take over NNPCL Retail. This convoluted transaction was done in order to hide the corruption involved. If this is the approach that the NNPCL wants to use in handing over its refineries to private hands, then Nigerians should not expect any positive development whatsoever.”