Former Vice President Atiku Abubakar has called on the federal government to immediately list the Nigerian National Petroleum Corporation (NNPC) Limited on the stock exchange, as mandated by the Petroleum Industry Act (PIA).
In a statement released on Sunday, Atiku reacted to the NNPC’s decision to transfer the management and operation of the Warri and Kaduna refineries to private operators.
On August 30, NNPC announced its intention to engage reputable operations and maintenance (O&M) companies to take over the Warri Refining and Petrochemical Company (WRPC) and the Kaduna Refining and Petrochemical Company (KRPC).
Atiku emphasized that listing the NNPC on the stock exchange is crucial for ensuring the company’s profitability and fostering national development.
“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. “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 also criticized the NNPC for shielding the Tinubu government’s inconsistent subsidy policies, raising concerns about the company’s independence as required by the PIA.
Atiku argued that past arrangements and concessions have failed due to a lack of transparency in contract processes and the government’s inability to attract credible investors. He stressed the importance of involving the Bureau of Public Enterprise (BPE) and a reputable technical partner like Standard and Poor’s (S&P) in future deals.
“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,” he noted. “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.”
Atiku questioned the logic of trying to make the refineries profitable while still paying petrol subsidies, arguing that no businessman would invest in a refinery programmed to operate at a loss.
He also cited the failed experiences of Manitoba Hydro International with the Transmission Company of Nigeria and Global Steel Limited with Ajaokuta Steel Company as examples of why the manage-and-operate approach has not been successful in the past.
Atiku further advised the NNPC to avoid making the contract process opaque, as he claimed it did with the OVH deal last year, which he described as dubious and ineffective in addressing fuel scarcity.
“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,” Atiku explained. “Barely eight months later, OVH turned around to take over NNPCL Retail. This convoluted transaction was done to hide the corruption involved.”
He concluded by warning that if the NNPC follows a similar approach in privatizing its refineries, Nigerians should not expect any positive outcomes.
