The Independent Petroleum Marketers Association of Nigeria (IPMAN) has criticized the Nigerian National Petroleum Company Limited (NNPCL) for securing a loan of $3 billion to stabilize the Naira.
IPMAN Chairman in Rivers State, Dr. Joseph Obele, in a statement made available to NATIONAL ECONOMY in Port Harcourt yesterday, described the action of NNPCL as “the highest degree of abuse of power and arbitrary allocation of funds.”
Obele stated that with the development, it has become clear that the principles of division of labor as stipulated by law have been dismantled.
The IPMAN Chairman, who said NNPCL was supposed to focus on energy security while the Central Bank of Nigeria (CBN) focuses on financial security, 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 $3 billion 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 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 #1 trillion Naira 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.”
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