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NNPC Ltd and challenges in the oil sector: Banire misconceives the facts, promotes biased views

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By Olufemi Soneye

 

 

In the face of the challenges in the oil sector, particularly the current tightness in the supply of petrol, it has become fashionable to blame the national oil company, the Nigerian National Petroleum Company Ltd (NNPC Ltd), for everything. Last week, it was Prof. Pat Utomi who railed and fumed at the NNPC Ltd calling it one of the most opaque and unreliable companies in the world. Before then, The Punch had published an editorial in which it described the NNPC Ltd as a danger to Nigeria. The latest of these vitriolic attacks is by Dr. Muiz Banire, a Senior Advocate of Nigeria (SAN), and former Commissioner of Transport and Environment, Lagos State, who contended in his column in The Sun that NNPC Ltd is the black hole of Nigeria.

Considering all that is going on in the petroleum sector, it would appear justifiable to call out the NNPC Ltd as some people have been doing in recent times. But most of the diatribes have been based on sentiments that are not rooted in facts. Railing at the NNPC Ltd without a thorough understanding of the issues that threw up the current challenges in the oil sector, as most of the commentators have been doing, will yield no good for the country. At this critical intersection, the task for all well-meaning Nigerians should be how to find lasting solutions to the mischiefs in the oil sector and not to look for scapegoats, as Dr. Banire has done.

According to Banire, Nigeria has been experiencing fuel scarcity since 1973 on the back of fuel subsidy and the NNPC Ltd is responsible for it. The assertion that the NNPC is responsible for this state of affairs is moot. The policy of fuel subsidy is not the preserve of the NNPC. Various administrations over the years have thought it wise to subsidize the cost of petroleum products for citizens. They came up with different methods of doing that. The role of NNPC Ltd has been to implement the policy as decided by government. At a point when the various administrations felt that the fuel subsidy policy had become a burden that should be done away with, they made it known. NNPC Ltd, as the national oil company, implemented it. This was the case in 2012 when the nation went up in protest against the decision of government to remove fuel subsidy. The same scenario repeated itself in 2019 when the then administration came up with the policy to remove fuel subsidy. NNPC Ltd is neither responsible for the policy of fuel subsidy or its removal.

It is very unfortunate that Dr Banire would descend to the level of castigating the NNPC Ltd for the fuel subsidy debacle that has plagued Nigeria and on the basis of that label the Company that has over the years patriotically borne the brunt of the fuel subsidy policy as a black hole. His analysis fails to take into consideration the huge challenges of products smuggling, pipeline vandalism, and crude oil theft that the company contends with daily, and in spite of which it manages to keep the nation going with crude oil production and fuel supply.

Barely three months after the Federal Government announced the removal of fuel subsidy, it became difficult for both major and independent petroleum products marketers to import petrol because of the foreign exchange policy. They could not source forex to continue to bring in petrol. Since then, NNPC Ltd has been importing the product and selling at almost half price in keeping with the provisions of the Petroleum Industry Act (PIA) which designates it as the fuel supplier of last resort. Yes, there have been supply hiccups here and there because of the financial constraints imposed by the transaction. Just imagine the hardship the nation would have suffered if NNPC Ltd was not there to play the role of supplier of last resort! NNPC Ltd is the reason Nigerians continue to enjoy lower pump price for petrol than they would ordinarily pay for the product. How then does such a company become a black hole?

For Banire, NNPC Ltd is responsible for everything that is wrong in the oil sector. He even blames smuggling and the unauthorized sale of petroleum products to street urchins who in turn trade it in the black market in jerrycans on the NNPC Ltd. But does he have evidence that the unpatriotic marketers who divert petroleum products meant for local consumption to neighbouring countries are staff members or representatives of the NNPC Ltd? Does he have any shred of evidence that the boys who sell fuel in the black market in jerrycans source their products from NNPC Retail Ltd.’s stations? The least one would expect from a lawyer of Banire’s standing is a fact-based and not speculative commentary.

The NNPC Ltd has turned a corner since 2018 when it began to prepare for the enactment of the Petroleum Industry Act, which was eventually passed into law in 2021. Apart from deepening its commitment to accountability and transparency by regularly publishing its audited annual financial statements, it has become a profitable company with undisputable growth trajectory. It recorded an unprecedented N3.29 trillion profit in its recently released 2023 audited financial report. But this fact is conveniently lost on Dr. Banire who insists that he has not seen any difference between NNPC as corporation and the commercially focused NNPC Ltd that was incorporated in 2021. Fortunately, it does not take Banire to see or believe that NNPC Ltd, as presently constituted, has broken away from its debilitating past for it to be true. He is at home with the legal maxim: “Res Ipsa Loquitur”, meaning the facts speak for themselves.

While one cannot dissuade people like Dr. Banire from criticizing the NNPC Ltd, they must refrain from standing facts on their heads all because they want to be populist or be in the good books of the public. Besides, the Banires of this world should also not be intentionally mischievous in their assertion that the NNPC Limited is exercising an overbearing influence on the regulators. One expects that given the level of their educational accomplishments, they should have the capacity to research very well into the subject matters of their editorial interventions so that they do not argue, assert and progress in error(s). In the corollary, it is either Banire is mischievous or ignorant about the assertion he made in his write-up that the NNPC influences the NUPRC and the NMDPRA who are the two independent regulators. If he lacks a clear knowledge of the workings of the sector, he should be humble enough to seek clarifications so he could be well informed. NNPC Limited is an operator-with a number of refineries under its purview. The Port Harcourt refinery will soon take off. As a matter of fact, the refineries under the NNPC are operators and are therefore subject to the regulatory framework and regulations set out by the NMDPRA. The operator(s) cannot, therefore, exercise overbearing influence on the regulators. This is commonsensically impossible. Pure and simple.

Soneye, is the Chief Corporate Communications Officer of the NNPC Ltd

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Opinion

Maryam Abacha:A Mixture Of A Mother And A Motherlode

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By Bala Ibrahim.

As the world commiserates the demise of Pope Francis, the leader of the Roman Catholic Church, who died at 88, the need has arisen, for us to revisit our conscience, by touching on the kindness of God. Nature is kind, very kind indeed, and it has demonstrated this benevolence in many ways, including the creation of queens with quick quirk and quintessential qualities. Also, in God’s limitless love for humanity, he built in some people, a combination of certain qualities, that cover colour, character and features or form, that give a pleasing sense of aesthetic sight. You may call it beauty. A beauty that resonates on the surface, to the applaud and appreciation of all, including those that may not necessarily believe in God. On the inside also, he gives some the comport of compassion, concern or care for others, in ways that conform with the commendable code of conduct. You may also call it spiritual beauty, which essentially means the internal radiance and character that transcends physical appearance. Internal beauty reflects the connection or association with virtue, inner goodness, and divine dedication. Such merger or mixture of beauty, (the outer and the inner), are rare and immeasurable for us as mortals. It touches on the individual’s sense of feelings and emotions, as well as his or her propensity to get or give joy and kindness. People that are fortunate with such endowment, always take delight whenever possible, to alleviate the suffering of others. And I make bold to say that nature has been particularly kind to Hajiya Maryam Abacha, by making her our mother and a motherlode, with internal and external beauty that radiate repeatedly.

According to Helen of Troy, the renowned most beautiful woman in Greek mythology, the only lasting beauty is the beauty of the heart. This is so because beauty, particularly the inner beauty, encapsulates the idea that kindness, compassion, and integrity, are far more enduring and valuable than outward appearance. These qualities, which mother Maryam has in abundance, highlight the power of inner strength and beauty as a source of lasting attractiveness and the influence to better the lives of others. Yes, outer beauty attracts, but inner beauty captivates. Outer beauty pleases the eye, but inner beauty captivates the heart. Mother Maryam’s inner beauty has been the driver for her ardent desire to render self-less service to humanity. She is always in a hurry to help.

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Mother Maryam’s history cannot be written without reference to the role she played in the development of the Jam’iyyar Matan Arewa (a Northern Women NGO) which resulted, among other projects, in the building of an Orphanage/Nursery School in Kaduna in 1973. Equally, Maryam Abacha, along with the wives of other senior military officers, helped in the re-activation of the moribund Army Officers’ Wives Association (NAOWA) and emerged as its 12th National President from 1985-1990. As First Lady, when her husband, late Gen. Sani Abacha was Head of state, Her Excellency, Mrs. Maryam Abacha, initiated the Family Support Programme (FSP), which focused on the family as a nucleus of social growth and development. The program focused on Health, Education, Agriculture, Income Generation, Disability, and Destitution among others. With that, she gave priority to public enlightenment and stimulated Government’s interest in the various FSP Action Areas, through the sponsorships of seminars and workshops on health; HIV/AIDS; Domestic violence; Disability; Destitution and Street Begging; Culture and Tradition as they relate to the sustenance of interest in traditional music.

Pursuant to the successes recorded in these endeavours, First Lady Maryam, persuaded the Federal Government to establish the Federal Ministry of Women Affairs and Social Development in January 1995. The Federal Ministry is the focal point for articulating development issues that affect women and children in Nigeria. It is in this context that she led the Nigerian delegation to the 5th African Regional Conference on Women, held in Dakar in 1994, and to the 4th World Conference on Women, held in Beijing, China in 1995. At the Beijing Conference, mother Maryam Abacha, was appointed as one of the conference Vice Presidents by the UN. Also, because of her appeal for global peace, in her address at the conference, she was appointed as the leader of the Africa First Ladies Peace Mission Committee by the African First Ladies Committee on Peace. As part of her renewed efforts to improve the quality of life for Nigerian Families, and in consonance with Nigeria’s Vision 2020 program of development, mother Maryam launched the socio-economic aspects of the FSP called, Family Economic Advancement Programme (FEAP) on 3rd March 1997. The program was designed to empower all families who constitute the local producers of goods, services, and potential entrepreneurs in the area of establishment of cottage industries.

9Maryam Abacha founded the National Hospital Abuja (originally known as the National Hospital For Women And Children) and established the African First Ladies Peace Mission. In recognition of her consistent and dedicated humanitarian services, Maryam Abacha received numerous merit awards from numerous organizations, locally and internationally.

Mother Maryam resides in Kano, Kano state, Nigeria. Apart from being the foster mother of the nation, she is the biological mother of three daughters and seven sons.

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Opinion

Why Governor Abba Yusuf deserves more recognitions for leadership resilience

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National Forum of Kano Indigene Lawyers has canvassed for additional profound decorations of Governor Abba Kabir Yusuf, in recognition of his leadership style that resonate resilience and dedication to quality governance.

Satisfied with the unwavering commitment and doggedness of the state government, towards transformative administration, the group affirmed that Governor Yusuf stands out in the crowd.

The forum rejoiced over recent flurry of encomiums on Governor Yusuf over series of awards from reputable corporate organizations, who accorded him the honors for his meaningfully impact on the socio-economic well being of Kano citizens.

However, the group, in a statement by it’s national coordinator posited that Governor Yusuf deserves more recognition for demonstrating exceptional disposition during the tense situations that played out around Sallah festivities in Kano.

The group said when the plot to take advantage of recent Sallah Durbar tussle to unleash provocation, and subsequently declare state of emergency, Governor Yusuf was never saturated with overwhelming endurance and resilience, which eventually triumphed over the evil plot.

He said for that alone, Governor Yusuf deserves another gold medal for exhibiting high level of wisdom and emotional resilience, which enabled him to overcome the tribulation.

“It was a week of glamour for Governor Abba Kabir Yusuf whose unwavering dedication to human and social economic development in Kano state were noticed and rewarded by array of meritorious awards.

“From Leadership newspapers, Abuja; Vanguard newspapers, Lagos and African Heritage Concept, Marrakech in Morocco, Governor Yusuf received distinguished accolades and applause for redefining governance in Kano.

“The shinning week began on Tuesday 9th, April, with the prestigious Leadership Governor of the Year 2024 named after Governor Yusuf in recognition of his outstanding contributions to education sector in Kano.

“No doubt, the leadership award was a validation of Governor Yusuf’s bold reforms in education and repositioning of the sector after years of neglect by the immediate past administration.

“Besides, Governor Yusuf was particularly commended by the Leadership newspaper for going extra miles with allocation of 31% of the state’s annual budget to education, surpassing the UNESCO benchmark”.

The statement further reads : “The celebration of the peoples Governor returned to Eko Hotel, Victoria Island, Lagos, where Yusuf earned another encomium as Governor of the year 2024 “Good Governance” category on the stable of Vanguard Newspapers.

“In Lagos, the man of the moment was recognized for his administration’s transformative achievements in the education and healthcare sectors.

” 24 hours later, the out pour of admiration moved to the city of Marrakesh, Morocco, where African Heritage Concept Magazine bestowed Governor Yusuf with another honor where distinguished African leaders and policy influencers were celebrated.

“Yusuf, was recognized on the continental stage with the prestigious African Good Governance Award 2025, in honour of his visionary leadership and commitment to people-centered governance and excellence in leadership, and public service.

” More over, we are of the firm conviction that Governor Yusuf deserves another award of excellence for distinctive emotional intelligence and purposeful leadership he displayed at the heat of Eid-il-Fitr Sallah Festivities in the state.

” When it was evident the plot to take advantage of Sallah Durbar around the prolong emirship, tussle to unleash violent provocation in Kano. It was a well calculated plot to give undue opportunity to declare state of emergency. Yet, Governor Yusuf was never saturated with overwhelming endurance and resilience which eventually overwhelmed the evil plan”.

Usman Imam Tudun Wizirchi Esq
Chairman

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Opinion

Inside My Conversation With A Kwankwasiyya Disciple -Hamisu Hadejia

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Last week, I rang my friend who is a Kano-based Kwankwasiyya disciple to know more about the rumour I heard about RMK joining APC. Though not in the inner sanctum of the Kwankwasiyya Movement himself, I knew my friend would know something I didn’t.

I rang because I could not, on my own, see any sincere, Talakawa-centric, Arewa-benefitting or pan-Nigerian justification for Madugu to make such a move.

For I know, at the popular level, which is what matter most to me, it is indisputable that all PBAT’s neoliberal, IMF-inspired economic policies have succeeded in are plunging the poor and middle class deeper and deeper into unprecedented hunger and poverty—so Kwankwaso’s justification cannot be framed as pro-poor or Talakwa-centric.

At the regional level, everyone knows that after Arewa contributed at least 60% of the votes that brought him to power, PBAT has turned around to not only bite the fingers that fed him but also actually cut off those fingers in a manner that defies all logic, commonsense, and rationality— so Kwankwaso’s justification can neither be generally framed as Arewa-centric nor particularly pro-Kano.

My contact (who I am sure will read this) minced no word in confirming to me that yes the rumour I had heard wasn’t groundless before going further to educate me about Kwankwaso’s or Kwankwasiyya’s calculations (aka justifications) for such a consideration (if not a decison).

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“Hamisu, I have no doubt about the sincerity of your interventions which I’ve been following closely, however, I’ll tell you this: while ordinary folks like you and I have our eyes on 2027, politicians like Kwankwaso and others have their eyes on 2031”, he kicked off as I listened with rapt attention.

“Kwankwaso”, he argues, “sees this moment as the opportunity to build the bridges which he would require to actualise his presidential ambition in 2031.” Put in simpler terms, Kwankwaso wants to help PBAT today in anticipation of PBAT paying him back tomorrow in 2031 “ when it will be the north’s turn” to produce Nigeria’s president.

“By hook or by crook,” he added, “Tinubu will bring himself back to power in 2031”. This, according to him, is the reality that Kwankwaso sees and wants to tailor his moves to fit in.

Unable to challenge my friend’s analysis of the Realpolitik behind RMK’s imminent political moves, I now asked about where the poor and Arewa stand in all of this. Here my friend bursts out laughing hilariously before bringing the example back home to me:

“Hamisu, Aminu Ringim (NNPP’s 2023 guber candidate in Jigawa) with his red cap went up and down towns and villages in Jigawa pulling impressive crowds across the state. But what did we end up with? Just one state House of Assembly member!”.

“The reality is,” he continued, “in today’s Nigeria, a politician needs that elite connection to actualise his ambitions. Look at Buhari as an example.”

So I was thoroughly lectured by Sidi.

My take from the chat is: While RMK is grass-rooted and genuinely cares for the poor as seen in many of his pro-poor initiatives, he seems to have now—for public good or ill—found out that there is a point up to which Takawa’s love and support can take a politician. Beyond this point, what matters most significantly, RMK appears to have now discovered, is intra and inter elite alliances. Call it the eliticization of Kwankwaso. Call it Realpolitik. Call it what you may!

Later I thought about other people such as the current NSA who also allegedly has ambitions for the presidency and is no doubt a close PBAT’s ally. What of Nasir Ahmad El Rufa’i’ and his hitherto cosy relationship with PBAT and how it all ended up in tears and regrets. Isn’t RMK taking the risks of squandering his goodwill to join a bandwagon under which he might be thrown the El-Rufai style?

Hamisu Hadejia Wrote From London

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