Former Vice President Atiku Abubakar has called for the immediate listing of the Nigerian National Petroleum Corporation Limited (NNPCL) on the stock exchange, as mandated by the Petroleum Industry Act (PIA). This demand is coming in the wake of the NNPCL’s decision to hand over the management of the Warri and Kaduna refineries to private operators, a move that has sparked controversy and raised questions about the company’s independence and governance.
Atiku argued that the NNPCL’s recent decision to privatize the operations of the two major refineries underscores the need for greater transparency and accountability in the management of the nation’s oil resources. He believes that listing the NNPCL on the stock exchange would compel the company to adhere to stricter financial and operational standards, thereby reducing the influence of political interests on its operations.
In his statement, Atiku expressed concern that the NNPCL continues to shield the government of President Bola Tinubu from the backlash of policy inconsistencies, particularly in relation to the payment of subsidies on petroleum products. According to Atiku, this protective stance by the NNPCL raises serious doubts about its claim to operate as an independent and private entity as stipulated by the PIA. He noted that, “The NNPCL is supposed to have been listed on the stock exchange in line with the Petroleum Industry Act. This would make the company more profitable and enhance transparency and corporate governance.”
The PIA, which was signed into law in 2021, aims to overhaul the petroleum sector by ensuring that the NNPCL operates as a commercial entity, free from political interference. However, Atiku argued that the current structure of the NNPCL, which he described as a façade, does not align with the provisions of the PIA. He criticized the corporation for masquerading as a private company while still functioning as a tool for the federal government to access funds at will. He stated, “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.”
The former Vice President also expressed skepticism about the viability of the NNPCL’s latest privatization plan, highlighting that similar initiatives in the past have not yielded the desired outcomes. He referred to previous efforts to rehabilitate Nigeria’s refineries through private partnerships, which have largely been unsuccessful. According to Atiku, the NNPCL’s plan to hand over the refineries to private operators without clear and transparent guidelines is likely to result in the same failures as previous attempts.
Atiku further advised the NNPCL to avoid making the contract awarding process opaque, as it did with the OVH Energy deal last year. He criticized the manner in which the NNPCL handled the OVH contract, suggesting that it lacked transparency and accountability. Atiku’s call for greater transparency in the NNPCL’s operations is part of his broader push for reforms in Nigeria’s oil sector, which has long been plagued by corruption, inefficiency, and a lack of accountability.
Atiku’s call for the listing of the NNPCL on the stock exchange is not new. He has been a vocal advocate for reforms in the oil and gas sector, arguing that such changes are necessary to improve governance and attract investment. He believes that by listing the NNPCL on the stock exchange, the company would be forced to operate under market rules, which would enhance its efficiency and profitability. This move would also provide the public and investors with better insight into the company’s financial health and operations.
Moreover, listing the NNPCL on the stock exchange would align it with global best practices. In many oil-producing countries, state-owned oil companies are listed on the stock exchange to promote transparency and good corporate governance. For instance, Saudi Aramco, the state oil company of Saudi Arabia, went public in 2019, and this has helped to improve its transparency and operational efficiency.
Atiku’s demand has sparked discussions among stakeholders in the oil and gas sector, with many expressing support for his call for greater transparency and accountability. However, some stakeholders have argued that listing the NNPCL on the stock exchange would require significant restructuring and regulatory adjustments, which could be a lengthy and complex process.
Critics of the NNPCL have long argued that the company operates with a lack of transparency, making it difficult for the public to hold it accountable. The NNPCL has often been accused of being a conduit for corruption and mismanagement in Nigeria’s oil sector. By listing on the stock exchange, the company would be required to publish its financial statements regularly, which would allow for greater scrutiny of its operations and reduce opportunities for corruption.
In addition to calling for the NNPCL to be listed on the stock exchange, Atiku also emphasized the need for the company to adopt international best practices in its operations. He urged the NNPCL to be more transparent in its dealings and to ensure that all contracts are awarded through a competitive and open process. He believes that this would not only enhance the company’s credibility but also attract more investors to the Nigerian oil sector.
The privatization of Nigeria’s refineries has been a contentious issue for many years. The Warri and Kaduna refineries, along with the Port Harcourt refinery, have been operating below capacity for decades, leading to a reliance on imported refined products. Despite several efforts by successive governments to rehabilitate these refineries, they have continued to underperform, resulting in huge financial losses for the country. Atiku’s call for privatization is seen by some as a pragmatic approach to resolving the longstanding inefficiencies in the refinery sector.
