NNPCL’s Dark Legacy: Corruption, Lies, and the Fuel Crisis

By Joachim Okhai.

“Corruption is a cancer that has crippled the growth of many developing countries and retarded prosperity in the global South.” John Dramani Mahama.

*”Corruption in the oil sector is not just a problem for the industry; it’s a problem for the entire nation, affecting everything from public health to education.”* ~ Anonymous.

Whenever the name NNPCL is mentioned the only picture that comes to mind is a dark tale of corruption, lies, and the saga of perpetual fuel crisis in Nigeria. It paints an ironic series of events of a company enmeshed in a never ending story of a cesspool of corruption.

NNPCL’s failure to address fundamental issues within the Nigerian petroleum sector, coupled with its alleged vile corrupt practices, has exacerbated the country’s energy woes.

NNPCL paints a story of a company who is a ‘judge and jury in its own case’ both as a regulator and a driver of a bankrupt behemoth in series of pretentious businesses which it drains the resources of Nigeria, a country which runs a monoproduct economy.

The gross allegations of corruption and mismanagement are so rife that if the government is not complicit in

NNPCL’s financial crimes against the Nigerian people, it ought to have taken decisive actions to investigate t tangible allegations of corruptions against it and hold those responsible accountable.

It is safe to say that it is only when that is done, that Nigeria’s hope to achieve a stable and sustainable energy future begin. Yet the big question on every Nigerian lip is; are the taste of the fruits of corruption such as the proceeds of fuel subsidy, contract scams, gross mismanagement and the ineptitude and incompetences of NNPCL’s leadership, from time immemorial, too sweet for the ruling class to act?

Only time can provide those needed answers which the suffering masses demand.

Furthermore, when we zoom in and take a critical look at the conundrum of the economic debilitating activities of The Nigerian National Petroleum Company Limited (NNPCL), we will realize that it’s operations from inception, have long been a subject of controversy and criticism, with unending allegations of systemic corruption, mismanagement, and deceit plaguing its operations and Nigeria’s economy by extension.

The recent fuel crisis in the country has only intensified these accusations, shedding light on the dark legacy of NNPCL.

I titled this article ‘NNPCL’s Dark Legacy: Corruption, Lies, and the Fuel Crisis’ because Nigeria is now at an economic precipice, and if NNPCL is not unbundled, its operations shrouded in corporate corruption shall doom us economically.

To further deepen this discourse, let us shed light on the current Fuel Crisis which NNPCL is completely complicit in.

There is nogainsaying that in recent months, Nigeria has faced severe fuel shortages, leading to long queues at petrol stations and skyrocketing prices.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has warned of a potential fuel scarcity across the country, attributing the crisis to the rising costs of petroleum products. According to IPMAN, the current pricing set by NNPCL for marketers is too high, with fuel being sold to marketers at ₦1,010 per liter, higher than the prices at NNPCL’s own retail outlets.

‘The lepros hand of Essau’ in all of this is the hidden Charges and Inflated Prices which stands as deliberate channels to feed the insatiable greed of the management of NNPCL, their cronies and those who they do their bidding in power.

Infact, The Coalition for Energy Reforms and Good Governance Advocacy has accused the Mele Kyari-led NNPCL of deliberate mischief and corruption. The coalition claims that hidden charges and taxes have been built into the cost of fuel, intentionally designed to inflate the price of Premium Motor Spirit (PMS) for local consumption. The price of PMS has risen from ₦568 to ₦1,075 within a year, a result of poor policies, mismanagement, and alleged corrupt practices.

Furthermore, the intentional failure to invest in local refineries or truly turn around existing refineries is another avenue of the gross deceptions of NNPCL.

That is to say one of the most glaring issues with NNPCL is its failure to prioritize investments in local refineries. Despite numerous promises to revamp and expand Nigeria’s refining capacity, little progress has been made. This reliance on imported fuel products has not only contributed to the fuel crisis but has also led to significant financial strain on the country.

Also, the issue of accumulated debt and lack of accountability is a deliberate invented misnormal that feeds a selected few with the proceed of corruption from the company. It has long been criticized for its lack of transparency and accountability. The company recently disclosed that it had accumulated a staggering $6 billion in debt, adding further pressure to the already strained fuel market.

Calls for an audit of NNPCL’s operations have grown louder, with civil society groups demanding an immediate investigation into the recent fuel price hike and the past and present subsidy regimes.

‘Human Cost’ is also a major issue of concern. The impact of NNPCL’s mismanagement and corruption is felt most acutely by ordinary Nigerians. The fuel crisis has led to increased transportation costs, affecting the prices of goods and services across the country. Many Nigerians are struggling to make ends meet, with the rising cost of living taking a toll on their daily lives.

Consequently more Nigerians are dying on a daily basis, while those that are sick and hungry have no medicines or food to survive.

The many allegations of all manner of financial atrocities and many more misconducts are inexhaustible to discuss.

The lies and deception which investigations have revealed are crippling and borders on vile misinformation as perpetuated by NNPCL officials.

There are instances where data manipulation and false reporting have been used to cover up mismanagement and theft. And that highlights the trust deficit this has created among the Nigerian populace.

As the perennial fuel crisis keeps fueling corruption and lies of NNPCL and how it directly contributes to no solution in sight about fuel shortages, inflated prices, and the economic hardship being faced by Nigerians.

In conclusion, let me opine that reforms which includes the dismantling of NNPCL can be the only solution amid the growing calls for change by Nigerians, the civil society, the media, and international bodies which must culminate in a push for greater transparency and accountability in a new and reformed energy establishment to completely phase out NNPCL.

While the reforms are important and should be urgent is because NNPCL performance compared to Saudi Arabia’s Aramco and Brazil’s Petrobras whose mandates and operations are similar; while NNPCL has declared its first profit in 44 years, amounting to N674.1 billion in 2021, Saudi Arabia’s Aramco, for instance, reported a net profit of $121.3 billion in 2023, despite a decrease from the previous year.

Lets save Nigeria’s Socio-Economic reality by killing NNPCL, and building a more transparent and accountable regulatory agency in it’s place to begin a full oil-economy which will lead to greater prosperity for all Nigerians.

#NNPCL #Nigeria #JoachimOkhaiThoughts #Fuel