Inefficiency and corruption in NNPC explain Nigeria’s inability to meet OPEC quota
The Conference of Nigerian Political Parties (CNPP) has urged President Muhammadu Buhari to end the inefficiency and rampant corruption of NNPC Limited, formerly Nigeria National Petroleum Corporation (NNPC), if Nigeria ever meets its production quota of the Organization of the Petroleum Exporting Countries (OPEC) in the near future.
The CNPP, in a statement signed by its Secretary General, Chief Willy Ezugwu, said that continuing to blame the monetary policy of the Central Bank of Nigeria (CBN) as responsible for the continued collapse of the naira against the dollar is tantamount to taking the blame game. appointees in the Buhari administration too far, insisting that “the CBN cannot be blamed when the country does not meet its OPEC production quota as an economy that depends mainly on oil revenues raw.
The CNPP was reacting to media reports credited to the Minister of State for Petroleum Resources, Chief Timipre Sylva, who confirmed that Nigeria was not meeting its OPEC production quota due to oil theft.
Contrary to the Group Managing Director of NNPC Limited, Mallam Mele Kyari, who corroborated the Minister’s position and lamented that Nigeria is currently losing around $2 billion per month due to the activities of oil vandals, the CNPP noted that the “claim was intended to protect itself and the company’s management team from blame.
“The country obviously faces revenue issues as a mono-economy and the only viable sector to earn foreign exchange is run by corrupt appointees in the current administration.
“According to media reports, in June this year, Nigeria incurred an oil subsidy estimated at N2.1 trillion Naira in the first six months of 2022. This is in addition to crude oil which the NNPC traditionally trades illegally for support a corrupt. subsidy scheme.
“The World Bank said in its recent Nigeria Development Report that “due to the gasoline subsidy and low oil production, Nigeria faces a potential fiscal time bomb”.
“In 2022, the Federal Government initially planned N443 billion for gasoline subsidy between January and June, but National Assembly approval in April to subsidize the product up to N4 trillion this year .
“While we continue to fund corruption within the NNPC under the guise of gas subsidies, recent data from the NNPC’s submission to the Federal Accounts Allocation Committee (FAAC) showed that the NNPC has continued to be handicapped in meeting its remittance obligations and the blame on the grant burden.
“NNPC disbursed N327.06 billion in subsidy in May, which is a 20.4% increase from the previous month and the highest on record this year, just as the now renamed oil company has also paid 210.38 billion naira, 219.78 billion naira, 245 billion naira. 0.77 billion and 271.59 billion naira as gasoline subsidy in January, February, March and April, respectively.
“It is unfortunate that NNPC Limited has since inherited a management team that has failed in every way, including its inability to pay out revenues on time, lack of transparency in grant payments and gross inefficiency in income generation.
“It is worrying that the NNPC, for more than ten months, has been unable to meet the OPEC production quota due to gross inefficiency and corruption, but, as part of the game blame of President Buhari’s appointees, oil thieves must be held accountable in order to stay in office.
“It has become abundantly clear that we cannot continue to blame the monetary policy of the Central Bank of Nigeria (CBN) for the continued free fall of the naira or the sharp swings in the exchange rate against the dollar as the NNPC has consistently been unable to meet Nigeria’s OPEC production quota for months.
“The CNPP therefore urges President Muhammadu Buhari to take very decisive action to end the endemic corruption and blatant inefficiency of the NNPC if Nigeria ever manages to meet its production quota of the Organization of Exporting Countries. oil (OPEC) in the near future,” CNPP said. .