Victor EzejaFinancial analyst and educator, Kalu Aja, has asserted that the Nigeria National Petroleum Company Limited (NNPCL) could have become at least a mini ARAMCO if it was set up like the Nigeria Liquefied Natural Gas (NLNG) Limited.
Aramco is the Saudi Arabian Oil Group.
Join our WhatsApp ChannelMr Aja said NLNG is the most successful public-private sector investment in Nigeria today.
According to him, the secret of NLNG’s success is the structure of ownership which sees Nigeria’s federal government having only 49 per cent stake with no total control of the management.
In a post on his verified X handle on Tuesday, Mr Aja said no corporate entity operated by the government has ever been efficient.
“I challenge you to show me any entity operated by the government of Nigeria that is efficient,” he stated.
He said NNPCL should have been privatized some decades ago to allow private investors to run it efficiently while the government collects taxes.
“NNPC should have been sold decades ago, and Nigeria simply enjoying dividend and tax revenues.
“Today NNPC is reduced to a hedge fund, that exists to borrow, with no functional refineries.
“In 2024, I still see Ministers wasting time to revive a government-owned and obsolete steel plant. The civil service as economic managers has not done a great job.”
His comment was in reaction to reports that the national oil company has begun export of Liquefied Natural Gas to Japan and China.
The NNPC Chief Corporate Communications Officer, Olufemi Soneye, who announced the development in a statement on Monday, said it is executed on a Delivered Ex-Ship basis.
He said the milestone was achieved through the collaboration of two of its downstream subsidiaries which include NNPC LNG Ltd and NNPC Shipping Ltd.
READ ALSO: NNPC Begins Gas Exports To Asia, Targets New Markets
NLNG is an incorporated Joint Venture company with NNPCL having 49 per cent, Shell Gas B.V. , 25.6 per cent; TotalEnegies Gaz & Electricité Holdings, 15 per cent; and Eni International, 10.4 per cent.
NLNG’s governance structure is such that guarantees having an independent Board of Directors that take effective business decision for the company.
“This structure has supported the achievement of the company’s vision of being a global company, helping to build a better Nigeria, as well as other critical success factors such as funding, transparency, accountability, sustainability, reliability and growth in the company, making NLNG arguably the most efficiently run Nigerian business in the industry,” according to a note on the company’s website.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
