Atiku Criticizes Tinubu’s Directive on NNPC, Deems it Illegal

Former Vice President Atiku Abubakar has strongly criticized President Bola Tinubu’s recent directive instructing the Central Bank of Nigeria (CBN) to take control of crude oil sales proceeds from the Nigerian National Petroleum Company Limited (NNPCL). Atiku, in a statement, deemed the move illegal, asserting that it undermines the operational independence of the NNPCL.

Tinubu’s directive mandates the NNPCL to submit receipts for crude oil sales to the CBN for vetting and documentation. Atiku argued that this order violates the legal status of the NNPCL, portraying it as an arbitrary decision that compromises the operational autonomy of the company. He contended that such a directive effectively shifts control of the NNPCL’s finances to the Federal Ministry of Finance and the CBN.

Referring to the Petroleum Industry Act 2021 (PIA), Atiku emphasized that the NNPCL, established as an independent limited liability company, should be allowed to operate in accordance with the provisions of the law. The PIA outlines extensive provisions for the formation, structure, governance, and operation of the NNPCL in Sections 53 to 65 of the Act.

Atiku stressed the importance of adhering to the law and permitting the NNPCL to function independently based on sound commercial objectives, international best practices, and standard principles of corporate governance. He argued that only through such autonomy can the NNPCL develop into a formidable institution with the technical and financial capacity required for global relevance in the petroleum industry.

Furthermore, Atiku pointed out that the Central Bank Act 2007 does not assign the responsibility to the CBN to vet transactions or formulate and maintain internal controls and audits in state-owned enterprises, public or private. He advocated for the CBN to adhere to its core functions as outlined in the extant law.

To ensure transparency and accountability in the NNPCL’s operation, Atiku proposed that the Nigeria Extractive Industry Transparency Initiative (NEITI) and the CBN monitor its bank accounts for crude sales proceeds. Additionally, he recommended the better selection and reconstitution of the NNPCL board members, potentially including representatives from the CBN and NEITI.