The Integrity Youth Alliance, comprising over 25 youth organizations, has called on a former governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, to stop being ignorant about the transparency and accountability brought to the Nigeria National Petroleum Company Limited under Mallam Mele Kyari.
In reaction to the recent outburst by Sanusi slamming NNPC Limited as the “most opaque oil company in the world,” the Board Chair of the Alliance, Comrade Adewole Kehinde, said that it is unfortunate that Sanusi is blind and deaf to the massive transformation under Mal Mele Kyari at NNPC Limited.
“Kyari has been instrumental in championing transparency and accountability in the NNPC, promoted the passage of the Petroleum Industry Act (PIA) 2021, and drove the transition to NNPC Limited.
“Nigerians could attest to the fact that under Kyari’s leadership, NNPC declared its first profit in 44 years and achieved numerous milestones, such as the public disclosure of NNPC accounts, Adewole said.
He went further: “In August 2020, NNPC became an Extractive Industries Transparency Initiative supporting company, joining a group of over 65 extractive companies, state-owned enterprises, commodity traders, financial institutions, and industry partners who commit to observing the EITI’s supporting company expectations.
“NNPC has been working with the Nigeria Extractive Industries Transparency Initiative (NEITI) on an action plan to routinely disclose information, and the company has published some of the data required by the 2019 EITI Standard on its website.
“The business’s dedication to its transformation into a more transparent national oil company is demonstrated by these disclosures. More momentum will be added to NNPC’s corporate objective of increased accountability and transparency through adherence to the EITI, which aligns with company expectations. Consolidated group-level financial statements, contracts controlling petroleum exploration and production, and revenues and payments to the government are the three areas where openness can be improved.
“As per the record, the NNPC has been receiving praise from all over the world. Former NEITI Executive Secretary Waziri Adio praised the NNPC’s decision to support the EITI, saying that it is a significant turning point in the company’s, Nigeria’s, and the nation’s quest for transparency. NPC joining the EITI as a supporting company is one such example. Given the importance of NNPC to the nation and the industry, this is the case. We applaud this audacious pledge, NEITI. As we collaborate with NNPC to turn its professed dedication to accountability and transparency into real, long-lasting actions and outcomes, we will keep up our efforts.”
On Sanusi’s question that says, “We are no longer paying subsidies, so where are the dollars? We are bold to say that in its determination to support Nigeria’s currency by arresting its free fall, NNPC Limited secured a $3 billion emergency loan from the African Export-Import Bank (Afrexim Bank) to stabilize the country’s volatile foreign exchange market.
“It was agreed upon that the NNPC Limited would be able to assist the federal government with its continuing monetary and fiscal policy changes intended to stabilize the exchange rate market by receiving an immediate payout.
“Nigeria imports a lot of fuel, amounting to $20 billion annually, and the paucity of foreign cash has made it more difficult, driving up the cost to as much as N617 per litre.
“The national oil firm had already obtained a $5 billion corporate finance commitment from Afrexim Bank to finance significant developments in Nigeria’s upstream industry, more than a year before the current agreement.
“It was anticipated that the agreement would increase the nation’s foreign exchange reserves and support the naira’s value relative to the dollar.
“The previous agreement was to be funded through a forward sale arrangement with the delivery of 90,000 to 120,000 barrels per day to be delivered to the lender over a four- to eight-year period.
“It is high time the former Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, wakes up to reality and supports the administration of President Bola Ahmed Tinubu as well as the performance management of the NNPC Limited to move the nation forward, as now is the time, Adewole said.
