NNPC: Curse Or Blessing? -By Abdu Abdullahi

The analytical question fits Nigerians as we are renowned for fantastic labeling of institutions, often unworthy of their names in mission value and goal achievements. That is why today, the Ajaokuta Steel Company is an ill omen for our development, a victim of the political vultures for more than 40 years. The Ajaokuta’s intimidating name and its sordid affair are a dramatisation of Shakespeare’s keen intelligence. Poor Ajaokuta! It is infrastructurally awesome but very negative in meaning, having been subjected to the process of bastardization even after reaching 95 of its completion. This unprecedented development decadence can be tolerated only in Nigeria, and happy we remain.

What about the Nigeria National Petroleum Company (NNPC)?  Of course, it is the winning team of disfiguration of ‘what is in a name.’ Does it worth its conceptual meaning vis-a-vis the statutory functions for which it was established? Raise as many questions as possible. You will be taunted by the probable harsh lambasting. Wise men opine that learning from the experiences of others is the key source of development. We shall look into this later with a view to answering the thematic concern of the title of this piece. But before then, let’s have a cursory look at the NNPC, correlating its name with its ‘dysfunctional and smeared’ image.

Established in 1977, the NNPCL has been an economic phenomenon, symbolising national asset and wealth to fix Nigeria on the path of sustainable development. It is entrusted with harnessing Nigeria’s oil and gas reserves for sustainable development. It also explores, produces, refines oil, markets and retailes petroleum products among others. These and others are the conglomerate of the NNPC. But is the company living up to our expectations? The NNPCL and the rest of us are enmeshed in deep crisis of expectations.

Nigeria’s uncommon dream of economic prosperity through the NNPC is still unrealisable after all these years. With its unsurmountable proclivity towards corruption, it functions as the heart of Nigeria’s corruption, evoking the question of oil corruption as Nigeria’s prophet of doom. Many see it as a deliberate conversion to a corruption industry, deployed as a conduit for self enrichment.

Over the years, there have been diverse corruption shenanigans, with staggering figures diverted from the sales of oil by reactionary elements. This is the fundamental feature of  NNPC’s scandalous epidemic. In 2013, the then CBN governor, Sanusi Lamido Sanusi, revealed that the NNPC did not remit 48.9 billion dollars accrued from the sales of oil to the Central Bank. Till date, no single individual has been arrested in connection with that alleged treasury looting. Who will tell me that looting does not pay in Nigeria?

2011 was another bad year in the history of oil corruption in Nigeria. It was the year we witnessed the huge 1.7 trillion naira subsidy overpayment scandal. Up to now, the major culprits have not been prosecuted. There was another shocking revelation in 2012. An audit for the ministry of finance done by renowned audit and advisory consultancy, KPMG exposed monumental corruption, financial malfeasance and other financial distortions in the NNPC. Thank God that Dr. Ngozi Nweala is still alive. She was a witness to that outrageous scam.

When the EFCC prosecuted some individuals and firms as accomplices in the theft of 115 million dollars from the NNPC, it was bewildering how its deployment was for the 2015 elections. In March 2016, the company failed to pay government 16 billion dollars which accounted for two-thirds of the government’s spending. Elder statesman Chief Edwin Clark once alleged that a syndicate of military officers, working in cahoots with disgruntled officials of the NNPC were behind the theft of crude oil running into trillions of naira over the years.

On several occasions, some top management staff of the NNPCL have been accused of awarding fraudulent multi-billion dollars contracts without recourse to procedure and due process. This is how systematic and organic corruption ruins the name of the company. Thus, in the NNPC, brinksmanship is very high while statesmanship is acutely low. Under the NNPC, financial discipline is minor whereas fiscal felony is predominant. Who can heal the NNPCL of this financial bleeding?

Meanwhile, blessed are the Saudi Arabia’s Aramco and Brazil’s Petrobas. They are the equivalent to our NNPC. They are examples of the NNPC with similar mandates. However, the NNPC has not been able to compete with them in terms of profits, nor has it been capable of attracting sizeable investment for sustainable national development.

Aramco made history in December 2019 by listing on the Saudi stock exchange market. This ensured more profits which led to raising 29.4 billion dollars on the Saudi stock exchange market. Similarly, Petrobas also listed its shares on the Brazil stock exchange market to ensure profit maximisation. Currently, the organization has an investment of 8.8 billion dollars.

To make NNPCL make profits like its successful colleagues, on September 20, 2021, it transitioned to a limited company with a similar goal of increasing profits. However, a review of the financial statements of the NNPCL shows that this move is yet to yield fruits. For the meantime, keep a date with the unfolding episodes in the NNPC. More shocking revealations are forthcoming as GMD Mele Kyari himself exploded recently that he would let the cat out of the bag when the right time comes.

Saudi Arabia through Aramco invested heavily on Chinese refineries in 2023. Aramco completed its purchase of a 10 percent stake in China’s Rongsheng petrochemical company for about 3.6 billion dollars. The deal will see Aramco supply about 480,000 barrels per day of additional crude oil to Rongsheng-affiliated refineries. But Nigeria’s NNPCL could only meet up with the Dangote refinery share of 7.2 percent instead of the agreed 20 percent.

While the NNPCL is afflicted by the virus of competitive corruption for self enrichment, Brazil’s Petrobas strategic plan for the 2024-2028 period forsees investments of around 102 billion dollars, an increase of 31 percent. With this increase in investment, the company estimates the generation of 280,000 direct and indirect jobs per year. In Nigeria, if the NNPC had invested massively on agriculture to diversify the economy, the current food crisis would have been a forgone conclusion. It should have also made significant investment on mineral resources exploration.

When are we going to develop a visionary NNPCL committed to public service, financial transparency and national development?