IPMAN Criticises NNPCL Over $3bn Oil-for-Cah Loan To Stabilise Naira

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has criticised the Nigerian National Petroleum Company Limited (NNPCL) for securing a loan of $3 billion from Afreximbank for the purpose stabilising the Naira.

IPMAN chairman in Rivers State, Dr. Joseph Obele, in a statement made available to LEADERSHIP in Port Harcourt on Friday, described the action of NNPCL as “the highest degree of abuse of power and arbitrary allocation of funds.”

Obele stated that with the development, it has become clear that the principles of division of labour as stipulated by law have been dismantled.

The IPMAN chairman, who said NNPCL was supposed to focus on energy security, while Central Bank of Nigeria (CBN) focuses on financial security, accused the oil company of failing to secure the energy sector by its inability to refine crude oil in Nigeria.

He said: “NNPC securing a loan of $3 billion for the purpose stabilising the Naira is the highest degree of abuse of power and arbitrary allocation of funds. It is now clear that the principles of division of labour as stipulated by law has been dismantled.

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“It is an act of omission or unlawful act done in an official capacity by NNPC.The NNPC loan Press statement has triggered scholars of the oil and sector to a research to ascertain how Financial stability concerns the duties of NNPC.

“The least educated person can tell you that the duties of NNPC amongst many include focusing on energy transition while ensuring domestic energy security by ensuring regular supply of products.

“On the other side, the Responsibilities of CBN is to be proactive in providing a stable framework for the economic development of Nigeria through the effective, efficient and transparent implementation of monetary policies and protecting the Naira against international currencies.

“In summary, NNPC is supposed to focus on energy security, while CBN focuses on financial security. NNPC has failed in securing the energy sector by it’s inability to refine crude oil in Nigeria, yet they are intruding into the responsibilities of the CBN.

“Under NNPC, Nigeria is the only OPEC member nation that owned refineries, yet unable to refine one liter locally. They couldn’t secure our reputation among OPEC member nations, but they are promising to secure the Naira. It is so funny, and this can only be possible in Nigeria.

“NNPC has the right to secure loans and in any case, if they don’t have need for the loan, they should channel it to hungry Nigerians. They should have used the loan to build modular refineries and repair our refineries that will employ million of Nigerians.

“Stakeholders are still confused to agree with realities that NNPC actually needed a loan at a time they told us that over #1 trillion Naira has been saved from subsidy removal, at at time they said Nigeria will have excess money because of fuel subsidy removal.

“As we speak thousands of contractors that have executed jobs for NNPC over the past one or two years are lamenting delayed in contract payment, NNPC didn’t borrow to pay those contractors, yet they are borrowing to do the job of CBN.

“The instability of our economy is as a result of misplaced priorities and lack of vision. This unfruitful approach of NNPC is one of such.”