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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.

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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

Opinion

Beyond the Godfather’s Shadow: Why Governor Abba Kabir Yusuf Chose Kano Over a Provincial Presidential Quest

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​By Kabiru Sani Dogo Maiwanki

​The recent pronouncements by Senator Rabiu Musa Kwankwaso regarding Governor Abba Kabir Yusuf’s strategic political recalibration have finally stripped away the façade, exposing the profound ideological fissures within the NNPP hierarchy. In a caustic address delivered Saturday evening, the Senator characterized the Governor’s newfound autonomy as a “betrayal” of a far more egregious nature than that of his predecessor, Abdullahi Ganduje. However, in this vitriolic attempt to cast himself as the victim of political infidelity, Kwankwaso inadvertently betrayed a disconcerting truth: he viewed the incumbent administration not as a sovereign executive entity, but as a subordinate instrument of his personal political estate.

​Senator Kwankwaso remarked that, as a presidential hopeful, his fundamental expectation was that the administration he purportedly “installed” would function as a geopolitical centrifuge—a financial and logistical catalyst designed to project the Kwankwasiyya hegemony into neighboring Northwestern territories. He expressed profound chagrin that, over two years into this mandate, the machinery of the Kano State government has not been weaponized to “conquer” even Jigawa State for his political brand. This revelation is remarkably candid; it implies that the Senator’s patronage of the current administration was never rooted in the socio-economic advancement of the Kano populace, but was instead a cynical stratagem to treat the state’s commonwealth as a private war chest for a singular, ego-driven presidential odyssey.

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​By resisting this role, Governor Abba Kabir Yusuf has committed what Kwankwaso perceives as an unpardonable “sin,” but what objective observers must recognize as a courageous act of institutional integrity. The Governor’s refusal to allow the Kano State treasury to be cannibalized for regional political expansion is a resounding victory for fiscal prudence and administrative transparency. It represents a principled rejection of the archaic practice where public commonwealth is weaponized to bolster the narrow political interests of a singular godfather at the expense of the citizenry.

​The depth of the Senator’s desperation is now laid bare for all to see. In a striking reversal from his usual posture of absolute authority, Kwankwaso has been reduced to making public appeals for reconciliation. His recent plea—openly asking anyone with access to the Governor to “beg him to come back”—reveals a leader who has finally grasped the magnitude of his loss. It is the sound of a man who realizes that the “innocent aide” he once underrated has not only secured his independence but has taken the soul of the movement with him.

​It is therefore essential for Kwankwaso and other political leaders who pride themselves on their political stature to realize that there is a limit to how long they can continue to deceive and exploit their followers. Respect must be reciprocal; whether between a leader and the led, there is a definitive limit to the amount of insult, manipulation, and contempt any person can endure.

Whenever you push a supporter to the brink and their patience finally runs out, the consequences of their anger will certainly be unpleasant for those in power.
​For the well-meaning people of Kano, this is a moment to offer unalloyed commendation. Governor Abba deserves praise for his steadfastness in protecting the state’s allocations and for prioritizing the welfare of the masses over the expansionist agenda of a political empire. Abba Kabir Yusuf has chosen to be the custodian of the people’s trust rather than a puppet for personal ambition, and in doing so, he has redefined the essence of leadership in Kano.

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Opinion

From Zamfara roots to national vision: Aliyu Muhammad Adamu, seasoned media leader, returns home to serve his people.”

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Aliyu Muhammad Adamu was born on 29th December 1982 in Tsafe Local Government Area of Zamfara State, into the respected Adamu Joji family.

He hails from a lineage that includes notable family members such as Alhaji Sanda Adamu Tsafe (Sarkin Yakin Tsafe), Alhaji Aliyu Adamu (Danmadami), Alhaji Sani Adamu, Hajiya Khadija Adamu (Gwoggo Dala), and Hajiya Amina, among others.

His father, Muhammad Adamu (popularly known as Nata’ala), later relocated to Kano State in pursuit of business expansion. As a result, Aliyu and his siblings were raised in Kano, where he began his early education at Da’awa Primary School, Kano.

Driven by a strong connection to his roots, Aliyu returned to Zamfara State for his secondary education, attending Unity Secondary School, Gummi. He subsequently gained admission into Bayero University, Kano (BUK), where he obtained both his Diploma and Bachelor’s Degree, graduating in 2010.

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After completing his National Youth Service Corps (NYSC), Aliyu faced the realities of life with resilience and determination, navigating through challenges that shaped his character and leadership capacity. In 2014, he returned to Zamfara State and began his professional career in the media industry with Gamji Television and Radio.

Through dedication, hard work, and professional excellence, he served the organization for nearly ten years, rising through the ranks to become the General Manager of the station, an achievement that underscored his leadership, administrative competence, and commitment to public communication.

In 2023, Aliyu voluntarily resigned from the media organization and relocated to Kano State in pursuit of broader opportunities and personal development. Today, driven by a renewed sense of purpose and a lifelong commitment to his people, Aliyu Muhammad Adamu is preparing to return to his hometown to seek the support and mandate of his people. His aspiration is to represent our parents, brothers, and sisters at the federal level, with a clear vision of contributing meaningfully to the development, unity, and overall progress of Zamfara State.

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Opinion

Opinion:The Anatomy Of A Hoax- Setting The Record Straight On Governor Abba Yusuf

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​By Ahmed Badamasi Tsaure

​The recent wave of political “scoops” regarding the purported defection of Governor Abba Kabir Yusuf of Kano State to the All Progressives Congress (APC) has moved beyond mere speculation into a coordinated campaign of character assassination. Most notably, reports by Daily Nigerian claiming the Governor’s move was “postponed” are masterpieces of fiction, designed to paint a sitting Governor as indecisive and subordinate. As a witness to the political realities in Kano, I find it necessary to dismantle these fallacies with the facts that the purveyors of this rumor have conveniently ignored. In Nigerian politics, defection is a statutory process requiring a formal resignation from one’s current party. To date, Governor Abba Kabir Yusuf has not submitted any resignation from the New Nigeria Peoples Party (NNPP). To claim that a “finalized arrangement” for a Monday registration existed is a procedural hallucination; one cannot join a new house without first stepping out of the old one.
​Furthermore, the narrative suggests the Governor’s plans were shelved because he failed to seek the “blessings” of local APC bigwigs. This is a laughable distortion of executive power. History is replete with Governors who defected based on executive conviction without the interference of local APC “big wigs.” We have seen this with the Governor of Delta vs. Senator Omo-Agege, the Governor of Bayelsa vs. David Lyon and Minister Heineken Lokpobiri, the Governor of Rivers vs. Nyesom Wike, and the Governor of Plateau vs. the current National Chairman of the APC. More recently, the defections of Governors like Dave Umahi (Ebonyi), Ben Ayade (Cross River), and Bello Matawalle (Zamfara) proved that when a Governor moves, he does so as the new leader of the party in his state. It is also historically hypocritical to label such a move as “betrayal.” When Rabiu Musa Kwankwaso defected from the PDP to the APC in 2013, he did not seek permission from any person or leadership—he led a rebellion based on his own conviction. If it was “principled politics” for the godfather then, it cannot be “betrayal” for the Governor now.

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​What, then, remains for a Governor who already holds the overwhelming mandate of his people? It is a known fact that Governor Abba Yusuf moves with the ironclad support of almost 95% of the Kano State House of Assembly, 50% of the National Assembly members from the state, all 44 Local Government chairmen, and the entire grassroots party structure. The desperate attempt by the NNPP National Working Committee to dissolve the Kano executive committees is a futile, “too-late” maneuver that only confirms their loss of control. When a Governor commands such total loyalty, he does not ask for permission; he leads. The defection of Governor Abba Kabir Yusuf is inevitable if he so wishes, as he carries the entire political soul of Kano with him.
​The theory that the APC postponed this move because Senator Kwankwaso is not coming along simply does not hold water. Kwankwaso’s refusal to join the APC is a settled matter; it is alleged the President offered him a ministerial position or the Chairmanship of the soon-to-be resuscitated Petroleum Trust Fund (PTF), both of which he rejected after his demand to join the Presidential ticket was denied. Using this stalemate as a pretext for the Governor’s “indecision” is a transparent lie aimed at making the Governor look like a political appendage. It is disheartening to see Daily Nigerian abandon objective journalism to frame the Governor as a “betrayer.” If Governor Abba Yusuf chooses to move, he does so as a leader of a massive political movement. The media must stop concocting stories to mislead the public. Governor Abba Kabir Yusuf remains focused on his mandate. These rumors are merely the desperate gasps of those who wish to see Kano in perpetual turmoil.

​Ahmed Badamasi Tsaure writes from Shanono Local Government, Kano State. He can be reached at ahmedtsaure28@gmail.com.

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