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Stakeholders in the country’s economy have slammed the Nigerian National Petroleum Company Limited (NNPCL) over its crude oil swap loan of $3billion from Afreximbank.
The NNPC explained that It took the loan to stabilise the volatile foreign exchange market in Nigeria.
But stakeholders lamented that the new loan has ballooned the nation’s debt profile, wondering why the NNPC should usurp one of the roles of the Central Bank of Nigeria as a stabiliser of the nation’s exchange rate.
They also told Sunday Independent that the NNPCL has violated its role as contained in the Petroleum Industry Act by dabbling into financial or monetary issues.
Sunday Independent quoted ex-Vice President Atiku Abubakar’s aide, Phrank Shaibu, knocking the NNPC over the loan that supposedly usurps CBN’s powers
He said the NNPC loan is fraudulent, noting that it was a gimmick to force the naira to appreciate at the parallel market.
He argued that such monetary policy was CBN’s responsibility and not NNPC’s.
He said Tinubu’s administration detained the suspended CBN governor, Godwin Emefiele, for taking $7.5 billion forex loans from JP Morgan and Goldman Sachs to defend the naira.
“Now, Tinubu’s administration claims to have done the same thing by forcing the NNPCL to take a loan of $3bn to defend the naira,” he said.
The Rivers State chapter of the Independent Petroleum Marketers Association of Nigeria (IPMAN) described the action of NNPCL as the highest degree of abuse of power and arbitrary allocation of funds.
Its Chairman Dr. Joseph Obele, in a statement at the weekend, stated that with the development, it had become clear that the principles of division of labor as stipulated by law have been dismantled.
He said NNPCL was supposed to focus on energy security while the Central Bank of Nigeria (CBN) focused on financial security.
He therefore accused the company of failing to secure the energy sector by its inability to refine crude oil in Nigeria.
He said: “NNPC securing a loan of $3billion to stabilize the Naira is the highest degree of abuse of power and arbitrary allocation of funds.
“It is now clear that the principles of division of labor as stipulated by law have been dismantled.
“It is an act of omission or an unlawful act done in an official capacity by NNPC.
“The NNPC loan press statement has triggered scholars of the oil and gas sector to research to ascertain how financial stability concerns the duties of NNPC.
“The least educated person can tell you that the duties of NNPC, amongst many, include focusing on energy transition while ensuring domestic energy security by ensuring a regular supply of products.
“On the other side, the responsibilities of CBN are to be proactive in providing a stable framework for the economic development of Nigeria through the effective, efficient, and transparent implementation of monetary policies and protecting the Naira against international currencies.
“In summary, NNPC is supposed to focus on energy security while CBN focuses on financial security.
“NNPC has failed in securing the energy sector by its inability to refine crude oil in Nigeria, yet they are intruding into the responsibilities of the CBN.
“Under NNPC, Nigeria is the only OPEC member nation that owns refineries yet is unable to refine one liter locally.
“They couldn’t secure our reputation among OPEC member nations, but they are promising to secure the Naira. It is so funny, and this can only be possible in Nigeria.
“NNPC has the right to secure loans, and in any case, if they don’t have the need for the loan, they should channel it to hungry Nigerians.
“They should have used the loan to build modular refineries and repair our refineries that will employ millions of Nigerians.
“Stakeholders are still confused to agree with realities that NNPC actually needed a loan at a time they told us that over N1trillion has been saved from subsidy removal, at a time they said Nigeria will have excess money because of fuel subsidy removal.
“As we speak, thousands of contractors that have executed jobs for NNPC over the past one or two years are lamenting delays in contract payment.
“NNPC didn’t borrow to pay those contractors, yet they are borrowing to do the job of CBN.
“The instability of our economy is a result of misplaced priorities and lack of vision. This unfruitful approach of NNPC is one of such.”
Martin Onovo, a Petroleum Engineer and former presidential aspirant under the umbrella of National Conscience Party, told Sunday Independent that the action of the NNPC was a misplaced priority.
The NNPCL, he said, should clean its rot and clearly play its roles effectively instead of needless intervention on monetary issues.
Kunle Olubiyo, a power sector advocate, in a chat with Sunday Independent, flayed the NNPC for bastardizing the original intentions of the Petroleum Industry Act (PIA).
He added: “NNPC Limited Is probating and reprobating. The present NNPC Limited is assuming the mindset of the old NNPC and at the same time playing the role of the new NNPC Limited.” (Sunday Independent)
