“Cesspool of Endemic Corruption” – Atiku Calls for Listing of NNPCL on Stock Exchange

Former Vice-President Atiku Abubakar has once again voiced his concerns over the Nigerian National Petroleum Corporation Limited (NNPCL), describing it as a “cesspool of endemic corruption” and calling for immediate reforms to ensure transparency and accountability.

Atiku, who was the presidential candidate of the Peoples Democratic Party (PDP) in the last election, voiced his concerns through his Media Adviser, Mr. Paul Ibe. He emphasized the importance of listing NNPCL on the stock exchange, arguing that this action would make the company more profitable and accountable.

“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,” Atiku stated.

He further accused the NNPCL of continuing to serve as the Federal Government’s “ATM,” despite its claims of being a private entity.

“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,” Atiku added.

Atiku also questioned the independence of NNPCL, as mandated by the PIA, pointing to the company’s role in providing political cover for the Tinubu administration’s inconsistent policies on fuel subsidies. He highlighted the lack of transparency in previous arrangements and concessions, which have failed to attract investors due to opaque contract processes.

In a pointed critique of the NNPCL’s operations, Atiku referenced former President Olusegun Obasanjo’s recent revelation that even Shell, one of the world’s leading oil companies, had declined to operate Nigeria’s refineries.

“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,” Atiku stated.

He also noted that over $20 billion spent on refineries in the last 20 years had yielded no significant results, questioning the logic behind trying to make these refineries profitable while still paying petrol subsidies.

“Which businessman will invest in a refinery that has been programmed to operate at a loss?” he asked.

Atiku expressed skepticism about the NNPCL’s current strategies, citing past failures of similar “manage and operate” approaches, such as Manitoba Hydro International’s handling of the Transmission Company of Nigeria and Global Steel Limited’s management of Ajaokuta Steel Company. He noted that these initiatives led to substantial losses and compensation payments, without achieving their intended goals.

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

Atiku’s criticism comes on the heels of NNPCL’s recent admission that it owes substantial debts to international oil traders, a fact it had previously denied. For months, NNPC maintained that it did not owe $6.8 billion to these traders, nor was it paying subsidies on petrol, even as fuel scarcity gripped the nation. However, as the crisis deepened, the corporation was forced to acknowledge its financial obligations and the role these debts played in the fuel shortages.

Atiku also took aim at the NNPC’s involvement in ongoing subsidy payments, which he claims are being concealed under the guise of other financial obligations.

In his campaign as the presidential candidate of the Peoples Democratic Party (PDP), the former Vice President had repeatedly vowed to sell off NNPC, citing its pervasive corruption as a significant barrier to Nigeria’s economic development. He argued that privatization was the only way to ensure that the company could operate efficiently and transparently, free from political interference and the entrenched corrupt practices that have plagued it for years.

Atiku urged the NNPCL to avoid repeating past mistakes, particularly in the handling of contract processes, such as the one involving OVH last year, which he described as dubious and ineffective in addressing fuel scarcity. He advised that future contracts be conducted transparently to ensure better outcomes for the country.