Again, NNPCL in eye of the storm – Dr. Muiz Banire

Some few months ago, I had cause to comment on the activities of the Nigerian National Petroleum Company Limited (NNPCL) in a very innocent and objective manner. Hardly had I published the discourse than I was taken up by the spokesman of the company, alleging my ignorance of the subject. As I was sure of my assertions in the said intervention, I put up a reply, in which I not only fortified my position but also further exposed the iniquities of the company. Nigerian National Petroleum Corporation, as it was then christened, was the state organization in charge of the country’s petroleum and its products. It was a historically and patently fully state-owned corporation, managed exclusively by the government. Upon the enactment of the Nigeria’s Petroleum Industry Act, the Corporation transformed into a limited liability company.

The impression sought to be given then and till now, is that the corporation is distinct from the government thenceforth. In fact, in response to the continuous agitation of the citizens, the government response has been, and is still that it is not in control of the NNPCL. In doing this, however, the government will appear to be shielding the company over its iniquities. Interestingly, the shareholders of the NNPCL remains ‘the Ministry of Finance Incorporated’ and ‘Ministry of Petroleum Incorporated’, both being government entities. How do you then isolate the company from the government in that circumstance? Who are the members of the management of the company? are they not the carry-over of the erstwhile corporation? Who ‘appointed’ or retained the Directors? Is it not the same government? What then really is the difference between the corporation and the company?

Nothing really to mind. It is simply an old wine in a new bottle. This makes it difficult for the government to exculpate herself from the failures of the company. Before I delve further into this conversation, let me promptly say to the spokesman of the company and other goons that are likely to rise up in solidarity with the company, either out of ignorance or motivation, that I come in peace. I mean no harm. I have actually struggled to resist intervening again in the affairs of the company but unfortunately, it is inevitable due to the challenges continuously thrown up by the operations of the company. As a Yoruba man, Ai si nbe, ni ai ba won da si (it is while absent that one contributes not to an issue on ground) and b’a wi, a ku, b’a si wi, a ku (whether we speak (against evil) we will die; if we do not speak, we still will die). It is, therefore, better to stand by the truth and the people. To this end, let me appeal to the government to disentangle itself from the company and fully deregulate and commercialize the company, to avoid the stains and dent brought upon it by the company. Continuous retention of the management of the company amounts to keeping bad company.

This is my innocent counsel to the government and the President, more so when he is reputed to be the substantive Minister of Petroleum. Oga mi, I beg, extricate your office and self from this monster of a company. The time to act is now! I wish I could engage directly but the gatekeepers are doing a good job of shielding the office from genuinely concerned Nigerians. Thank God, this alternative is still available and potent. Having said this, what now prompted this conversation? It is simply the celebration and de-celebration of the much-trumpeted resumption of activities at the Port Harcourt Refinery.

All the above truly turned out to be lies. Thus, the blogger/commentator insisted that nothing new was going on at the Port Harcourt refinery. This position was to be further corroborated by a communal stakeholder, Timothy Mgbere, in the location of the refinery who boldly stated that not only was what we watched on the national television, cosmetic, it was just a circus involving the distribution of old stock to about six trucks.

The unfolding events is now turning the entire experiment into a hoax. With the above piece of information, I was still doubtful of the picture painted as I had no means of ascertaining same. My skepticism was reinforced by the counter-offensive issued by the spokesperson of the company who described the position of the community stakeholder as a product of crass ignorance.

Ordinarily I ought not to believe the spokesperson as it was in the same pedestrian manner, he dismissed my comments at a time. As if to justify my suspicion of the statement from the NNPCL, there came the report from the Punch Newspaper, one of the most credible news mediums around. This is the last straw that broke the camel’s back as the correspondent who visited the refinery audaciously informed us that only old stock of less than six trucks was loaded and that no operation was ongoing at the refinery for whatever reason. This has been admitted, by way of another falsehood, in a December 2, 2024 news publication that the “Port Harcourt Refining Company (PHRC) has clarified that its operations have been scaled down, not completely halted, as part of ongoing upgrades to improve its facilities”. Laughable. With this, as the Yoruba proverb goes, o jo gate, ko jo gate, o fi ese mejeji tiro which literally means whether the accusation is true or not, the posture of the object is a testimony to its fact.

Let me even step further, the expectation by Nigerians that even if the refinery resurrects, the implication must be the crashing of the extant prices of petroleum products, no matter how small. This again is not to be as the prices even appear higher. What is therefore the essence? As I opined at the inception of this discourse, I was reluctant to engage the company but for the fact that truth must be spoken particularly when it significantly affects one. As at date, my family consume fuel of not less than a million naira monthly. This implies that I am groaning under an unsustainable circumstance. For decades now, it seems NNPC, or NNPCL, as the case may be, has never been in the news for any positive reason. Like the proverbial tortoise that is the protagonist of all negative stories and hence reflected in the Yoruba proverb, oro gbogbo kii se lori alabaun (all stories begin and end with the tortoise), the NNPCL has acquired this nefarious fame. It is either for non-remittance into the federation accounts, incapacity to account for crude-non-auditing of its accounts, incapacity to secure pipelines or products, struggle with the Dangote Refinery, oil subsidy scam, or unfair pricing and exploitation of the masses.

The only time that it now seems to have recorded some accolades, is greeted with controversy bothering on fraud. The corporation, now company continues to be in the news for wrong reasons. I believe it is advisable for the company to, at this stage, surrender, by this, I mean the management. Honestly, from the ‘little’ I know about the industry, I strongly suspect that the refineries that are under the so-called rehabilitation are obsolete and unserviceable again. It is either we balkanize and sell the parts, or best sell them in entirety to a willing buyer or buyers, not even concession. Hopefully, the entity acquiring will be able to deploy private sector capacity to really resurrect the refineries. The good news is that there are so many modular refineries even coming up, let us continue to encourage investment in the area and stop grandstanding with resuscitating the refineries that the government lacks the capacity to maintain and sustain. We need to stop throwing good money into bad projects. Imagine the huge sums already consumed in the turn-around maintenance or rehabilitation of the refineries. I am of the view that it probably would have been better since to construct a new refinery with the sum. It is economically unsound to continue along this perilous route. Except there is more to it, let wisdom prevail. That corruption in the industry is unparallelled is no news again. I wonder why my friend, the EFCC Chairman or that of the other anti-corruption agency has not peeped into the nefarious activities of the company. I hope none of them is awaiting my petition or that of any other Nigerian. I believe that most Nigerians have now resigned to hopelessness than to waste the little precious time writing petitions that eventually will not birth any meaningful outcome. It is, therefore, a challenge to the anti-corruption bodies. Just recently, without a petition, and out of concern, the Economic and financial crimes Commission is now uncovering so much as it pertains to the Transmission Company of Nigeria. NNPCL deserves the same treatment urgently, if we are to believe that there is still no sacred cow in the country. This much I opined during the reign of Emefiele but was ignored.

Contemporary events are now validating my observations then. This is not likely to be different ultimately. This is my little intervention today, hoping to say more in reply to any expected rejoinder.