Why NNPCL ‘performs woefully’ in oil & gas sector –Governor

*Governor Nasir El-Rufai of Kaduna State emphasises except the Federal Government hands off the Nigerian National Petroleum Company Limited, the state oil firm will continue to ‘perform woefully’

Alexander Davis | ConsumerConnect

The Federal Government has failed in the management of Nigeria’s oil and gas resources over the years.

Governor Nasir El-Rufai of Kaduna State stated this Thursday, in an interview on Channels TV monitored in Lagos.

ConsumerConnect reports Governor El-Rufai said this on the occasion of the 2022 KadInvest programme, an annual event organised by the Kaduna State Investment Promotion Agency.

Governor Nasir El-Rufai of Kaduna State

He described the Nigerian National Petroleum Company Limited (NNPCL) as the West African country’s biggest problem.

The Federal Government incorporated the NNPCL as an enterprise designed for full commercialisation with the promulgation of the Petroleum Industry Act (PIA) 2021.

The company later became fully commercialised July 2022.

The Kaduna State Governor stressed the state oil company should be privatised.

He also noted that the NNPCL is making profit without paying dividends to its shareholders.

According to El-Rufai, even with its commercialisation, nothing has changed with the way the company is being run.

The Nigerian National Petroleum Company, however, since its commercialisation July this year, has not remitted monies to the Federation Account.

The company reportedly said that it was using its earnings to fund subsidy payments in the economy.

But the governor further said: “Nothing has changed; they are still taking our money, declaring profit that we don’t see the dividends.

“This year, NNPC has not brought N20,000 to the Federation Account. We are living on taxes.”

El-Rufai stated: “It is PPTs, royalties, income tax, and VAT that is keeping this country going because NNPC claims that subsidy has taken all the oil revenues. I don’t believe it.”

The governor, therefore, observed except the Federal Government hands off the NNPC, the company will continue to perform woefully.

Whatever government manages fails, he declared.

In a comparative analysis, the governor as well cited the thriving telecoms industry, entertainment, FinTech as sectors that are doing well without the Nigerian Government’s involvement.

El-Rufai restated that it is high time the government left the oil and gas sector for the private sector to manage.

“I am giving this example so that when I say government should get out of oil and gas, people should not think it is crazy; it is not.

“There is no reason why the Nigerian Government should still be in the oil and gas sector.

“It should just get out, it has failed. By every measure it has failed,” he said.

Besides, the Kaduna State Governor urged total privatisation of the power sector, as he stated that the government should quit the vital sector of the economy.

El-Rufai added: “The government should get out of everything that is left of electricity, leave it to the private sector, create the environment, the money will come.

“We did it in the telecoms sector.”