Atiku Abubakar condemns ‘unlawful’ takeover of crude oil sales proceeds

Former Nigerian Vice President Atiku Abubakar has condemned the recent directive by the Federal Government, transferring control of crude oil sales proceeds from the Nigerian National Petroleum Corporation Limited (NNPCL) to the Central Bank of Nigeria (CBN).

Abubakar asserts that this move, while lacking transparency, also violates the legal status and operational independence of the NNPCL.

The directive, issued by the President, mandates the NNPCL to submit receipts for crude oil sales to the CBN for vetting and documentation.

Abubakar contends that this arbitrary order undermines the principles of due process in public administration and contradicts the provisions of the Petroleum Industry Act 2021 (PIA), which established the NNPCL as an independent limited liability company.

The PIA, signed into law on August 16, 2021, outlines the formation, structure, governance, and operation of the NNPCL.

Abubakar emphasizes the need for the government to respect the law and allow the NNPCL to function independently, adhering to international best practices and standard principles of corporate governance.

Highlighting the potential consequences, Abubakar warns that any attempt to compromise the operational independence of the NNPCL could hinder investment opportunities and diminish its global standing in the Petroleum Industry.

Moreover, he points out that the Central Bank Act 2007 does not grant the CBN the authority to vet transactions or control internal audits in state-owned enterprises, public or private.

Abubakar advocates for allowing the CBN to fulfill its core functions as dictated by existing laws.

To ensure transparency and accountability in NNPCL’s operations, Abubakar proposes monitoring its bank accounts for crude sales proceeds, suggesting collaboration with the Nigeria Extractive Industry Transparency Initiative (NEITI) and the CBN.

He also recommends a careful selection and potential reconstitution of the NNPCL board, possibly including representatives from the CBN and NEITI.

As the controversy unfolds, Abubakar’s strong stance underscores the potential ramifications of the government’s decision on the Nigerian petroleum industry.