By Abiola Olawale
Former Vice President Atiku Abubakar has called for the immediate listing of the Nigerian National Petroleum Company Limited (NNPC Ltd) on the stock exchange in line with the Petroleum Industry Act. This development has elicited mixed reactions from Nigerians.
Atiku, the 2023 presidential candidate of the Peoples Democratic Party (PDP), said the reason he maintains that it makes sense to immediately list NNPCL on the Stock Exchange is to foster much-needed transparency in the company’s operations and enhance corporate governance.
According to him, the call is imperative following the announcement of the NNPCl that it is currently exploring the transfer of the operation and maintenance of its two refineries to private firms-Warri and Kaduna refineries and petrochemicals.
Atiku, in a statement issued by his Media Adviser, Paul Ibe, emphasized that listing the NNPC Ltd on the Stock Exchange would make the company more profitable and enhance transparency and corporate governance.
The statement reads in part: “Currently, the NNPCL claims to be private, but this is 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.
“Former President Olusegun Obasanjo revealed recently that even Shell, one of the world’s wealthiest oil companies, rejected the offer to operate Nigeria’s refineries. This is because the NNPCL has, for years, been a cesspool of endemic corruption.
“This is why over $20bn that has been spent on the refineries in the last 20 years has led to nowhere. 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?”
This is coming after the NNPCL announced that it is seeking private firms to manage and maintain the operations of Warri and Kaduna refineries following decades of being in moribund condition.
The New Diplomat reports that the Kaduna and Warri refineries are two of the four refineries owned by the NNPCL.
However, their lack of functionality has forced the country to rely heavily on imported refined petroleum products, significantly impacting the economy.
