Former presidential candidate Atiku Abubakar has expressed alarm over what he views as a “illegal” move by the Federal Government to transfer control of crude oil sales proceeds from the Nigerian National Petroleum Company Limited (NNPCL) to the Central Bank of Nigeria (CBN), calling into question recent government actions. In addition to having no legal basis, Atiku argued that this judgement puts the NNPCL’s operational independence in jeopardy.
The President’s instruction issued by the Federal Government requires the NNPCL to provide the CBN with documentation and vetting of its crude oil sales receipts. Atiku Abubakar contends, however, that this action goes against the NNPCL’s legal standing because it is an arbitrary directive that compromises the business’s operational independence.
Atiku emphasized that state-owned businesses, such as the NNPCL, should have complete control over their finances while staying within the bounds of their individual establishment laws. He claimed that these businesses are not susceptible to capricious orders. According to Sections 53 to 65 of the Petroleum Industry Act 2021 (PIA), the NNPCL was established to function as an autonomous limited liability corporation.
The former contender for president pleaded with the government to uphold the legal requirements and permit the NNPCL to function autonomously under the direction of sensible business goals and global best practices in corporate governance. He stressed that any attempt to undermine the NNPCL’s operational independence could make it more difficult for it to draw in investments and become globally recognised in the petroleum sector.
Atiku also emphasized that the CBN is not given the jurisdiction to approve transactions, create and uphold internal controls, or conduct audits in state-owned businesses under the terms of the Central Bank Act of 2007. He argued in favour of President Tinubu letting the CBN carry out its legally mandated primary duties.
Atiku Abubakar suggested rather that the Nigeria Extractive Industry Transparency Initiative (NEITI) and the CBN track the company’s bank accounts for the profits from the sale of crude oil in order to improve accountability and transparency in the NNPCL’s activities. He also recommended that President Tinubu reorganise the NNPCL board to include CBN and NEITI representatives.
Atiku Abubakar’s strong critique clarifies what he sees as a violation of moral and legal standards in the latest decision over the NNPCL’s finances. It will be interesting to watch how the government handles these accusations as the discussion progresses and whether any changes are made to comply with corporate governance guidelines and regulatory frameworks. Keep checking back for more details as this story develops.
