The former vice president of Nigeria, Atiku Abubakar, has criticized President Bola Tinubu’s order to the Central Bank of Nigeria (CBN) to take over the responsibility for crude oil sales proceeds from the Nigerian National Petroleum Company Limited (NNPCL).
Atiku, who is a presidential aspirant of the Peoples Democratic Party (PDP) in the 2024 general elections, said the directive was “illegal” and “arbitrary”. He argued that it undermines the operational independence of the NNPCL, which is a creation of the Petroleum Industry Act 2021 (PIA).
CBN lacks power to vet NNPCL transactions
Atiku asserts that the CBN lacks the legal authority or technical capacity to scrutinize NNPCL’s transactions, given that it is an independent limited liability company. He emphasized that the CBN ought to carry out its core functions as outlined in the Central Bank Act 2007, refraining from meddling in the affairs of state-owned enterprises.
Atiku also pointed out that the presidential directive is a violation of the principle of due process in public administration, as it bypasses the established oversight mechanisms for the NNPCL, such as the board of directors, the auditor-general, and the Nigeria Extractive Industry Transparency Initiative (NEITI).
He urged the federal government to respect the provisions of the PIA and allow the NNPCL to run as an independent company based on sound commercial objectives and in line with international best practices and standard principles of corporate governance.
Tinubu’s directive sparks controversy
Tinubu, a presidential aspirant of the ruling All Progressives Congress (APC) in the 2024 general elections, issued the directive on Monday, with the aim of enhancing the nation’s external reserves and foreign exchange flows.
He said the NNPCL and the Ministry of Finance had agreed to remit all their dollar revenues to the CBN, which would then convert them to naira and allocate them to the three tiers of government according to the revenue sharing formula.
The directive has sparked controversy and criticism from various stakeholders, including the opposition parties, the oil and gas industry, the civil society, and the public. Some have accused Tinubu of usurping the powers of the National Assembly and the Federal Executive Council, while others have expressed concerns about the implications of the directive for the economy, the fiscal federalism, and the transparency and accountability of the oil sector.
NNPCL seeks legal advice
Meanwhile, the NNPCL has said it is seeking legal advice on how to comply with the presidential directive, which it described as a “surprise”. Dr. Kennie Obateru, the NNPCL’s spokesperson, stated that the company did not receive prior consultation before the issuance of the directive, and it also lacked official communication from the presidency or the CBN regarding this matter.
Obateru emphasized the NNPCL’s commitment to fulfilling its obligations to the government and the public, while also safeguarding its interests and commercial reputation. He added that the NNPCL was also concerned about the potential impact of the directive on the exchange rate, the inflation, the foreign investment, and the confidence of the international oil market.
Although controversy and confusion surround the presidential directive, certain experts and analysts remain hopeful that a constructive resolution can be achieved. They said the directive could provide an opportunity for a dialogue and a review of the governance and management of the oil sector, which is the mainstay of the Nigerian economy.
They also called for a broader and deeper reform of the oil sector, which would address the challenges of corruption, inefficiency, environmental degradation, and social injustice.
Source: Punch
