- Atiku Spits Fire, Says FG’s ‘Action’ Is Illegal
- It’s An Arbitrary Order Capable Of Undermining Operational Independence Of NNPCL
- FG Must Respect Provisions Of Law And Allow NNPCL To Run As An Independent Company
While uncertainty and confusion continue to trail the alleged order given to the Nigerian National Petroleum Corporation (NNPC Limited) for the state oil company to transfer crude oil proceeds from the oil company to the Central Bank of Nigeria (CBN), fresh controversy has emerged on the case.
Former Vice President and the Presidential Candidate of the Peoples Democratic Party (PDP) has described the move as illegal in its application.
Atiku, while bemoaning the opaqueness that has accompanied the move, lampooned the Federal Government for not providing clarity on the issue.
READ ALSO: CBN Gives Banks Today To Sell Excess Dollars
He disclosed further that without prejudice to the possibility of any good that was intended in the decision of the Federal Government, the presidential directive is a violation of the legal status of the NNPCL.
Atiku’s position was contained in a lengthy post on his X previously known as Twitter platform on Thursday.
“Without prejudice to the possibility of any good that was intended in the decision of the Federal Government to make the Central Bank of Nigeria (CBN) take over the responsibility for crude oil sales proceeds from the NNPC Limited, it must be clearly stated that the action is not legal in its application.
Although, as usual, of the current administration, little has been communicated to the public about explaining details of the decision.
According to what is publicly available, the President has issued a directive that henceforth, the NNPCL would submit receipts for crude oil sales to CBN for vetting and documentation” he began.
Continuing, Atiku stated that whatever may be the merit of the new arrangement, the presidential directive is a violation of the legal status of the NNPCL.
READ ALSO: Ndume Admits Daughter’s Employment at CBN Yet Opposes Relocating FAAN and Apex Bank
“It is an arbitrary order capable of undermining the operational independence of the NNPCL.
By this order, Mr. President has wrested control of the finances of the NNPCL and donated the same to the Federal Ministry of Finance and the Central Bank of Nigeria.
This is an unprecedented act, without any legal or ethical basis. It is also a violation of the principle of due process in public administration.
State-owned enterprises are not subject to such arbitrary orders and have full control over their finances within the confines of their respective establishment laws.
The NNPCL is a creation of the Petroleum Industry Act 2021 (PIA), which was signed into law by the President of the Federal Republic of Nigeria on 16 August 2021.
The PIA makes extensive provisions for the formation, structure, governance, and operation of the NNPCL as an independent limited liability company in Sections 53 to 65 of the Act.
The government must, therefore, respect the provisions of the law 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.
Only then would the new NNPCL grow into a formidable institution with track records, requisite technical and financial capacity, and readiness to operate in public space.
READ ALSO: Senate Chief Whip, Ndume, Supports Tinubu On Payment Of Crude Oil Sales Into CBN
Any attempt to undermine the operational independence of the NNPCL will be a hindrance to any chances of attracting investments and attaining global relevance in the Petroleum Industry”.
Atiku added that “Let it also be stated that the Central Bank Act 2007 does not confer on the Central Bank of Nigeria, any responsibility for vetting the transactions of, or formulating and maintaining the internal controls and internal audits in state-owned enterprises, public or private.
The CBN should be allowed to perform its core functions as provided in the extant law.
To enhance transparency and accountability in the operation of the NNPCL, its bank accounts for crude sales proceeds (for example at Morgan Stanley) and the entire crude sales conversion circle can be trailed by Nigeria Extractive Industry Transparency Initiative (NEITI) and CBN.
Amongst other supportive measures to enhance transparency, the NNPCL board members can be better selected and reconstituted to include, if desired, representatives of the CBN and NEITI”.
It would be recalled that there have been reports that President Bola Tinubu had ordered the CBN to take over the responsibility for crude oil sales proceeds from NNPCL.
Under the new arrangement, NNPCL will be expected to submit receipts for crude oil sales to CBN for vetting and documentation.
The NNPCL which has been in control of crude oil sales, only renders accounts to the Federal Government while retaining the proceeds.
The development has been shrouded in some confusion as there have been no clear cut statements from the Federal government, CBN or NNPCL regarding the move.
