Victor EzejaFormer Vice President, Atiku Abubakar, has highlighted the need for the Nigeria National Petroleum Company Limited (NNPCL) to be listed on the Nigerian Stock Exchange (NGX).
Atiku, who pointed out that listing NNPCL on the stock market is in line with the Petroleum Industry Act 2021, emphasised that it would foster transparency and make the national oil company more profitable.
Join our WhatsApp ChannelAtiku made the call through a statement on Sunday from his media adviser, Mr Paul Ibe.
“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,” part of the statement read.
The presidential candidate of the Peoples Democratic Party (PDP), in the 2023 election said while the national oil company claims to be private, it is, however, “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.”
The call comes as NNPCL announced its willingness to hand over the Warri and Kaduna refineries to private operators who would operate and manage them.
The national oil company on Thursday, called for tenders from reputable and credible Operation and Maintenance companies to manage the company, citing that the decision is in line with the quest to meet the country’s fuel supply needs.
Atiku, however, said the NNPCL had demonstrated lack of transparency in the award of contracts for similar engagement in the past, hence the reason they did not work, and consequently they were unable to attract foreign investors.
He stressed that for such arrangement to succeed, the Bureau of Public Enterprise (BPE) and a credible technical partner like Standard and Poor’s must be part of the process.
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Highlighting NNPCL’s inefficiency, the former vice president said the Federal Government has spent over $20 billion on rehabilitation/maintenance of the refineries in the last 20 years but nothing came out of it.
“It is also curious that a government that is still paying petrol subsidy is trying to make its refineries profitable. Which businessman will invest in a refinery that has been programmed to operate at a loss?,” Atiku queried.
He expressed doubt about the feasibility of the NNPC’s latest plan, as according to him, such arrangement has not been profitable.
He further said NNPCL should not make the contract process opaque like it did with OVH in 2023, which according to him, was not only dubious but has still failed to boost the NNPCL’s petrol sufficiency as shown in the months of fuel scarcity.
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.
