By Samson Ike
As the custodian of Nigeria’s vast hydrocarbon resources, the Nigerian National Petroleum Company Limited (NNPCL) which is expected to be the guarantor of energy security, the engine for economic growth, and the catalyst for industrial transformation has become a symbol of corruption, incompetence, and systemic failure, under the leadership of Mele Kyari. The latest manifestation is the NNPCL’s deliberate effort to stifle the growth and survival of local refineries, a move that has once again led to the reconsideration of Nigeria’s dependence on imported petroleum products.
Being one of the world’s largest oil-producing countries, it is expected of Nigeria to naturally be a net exporter of refined petroleum products. However, despite being endowed with abundant crude oil reserves, the reality is starkly different. Nigeria remains heavily reliant on imported refined products to meet the domestic energy needs of the country. This dependency is not a result of natural constraints but man-made, a consequence of institutional sabotage and deliberate policy failures that were orchestrated by the NNPCL under Mele Kyari’s Leadership. One that could be tagged: “the NNPCL anti-local refinery agenda,” a gross betrayal of National interest.
However, one of the most conspicuous examples of this sabotage is the recent suspension of the naira-for-crude deal with Dangote, BUA, and other local refineries. This policy is not only absurd but also economically untenable. It defies logic for local refineries, which are supposed to be the backbone of Nigeria’s energy security, to be subjected to the vagaries of foreign exchange markets to access crude oil produced within the country. It is an incontrovertible absurdity.
It is important to understand that the NNPCL’s deal allowed local refineries to pay for crude oil in naira while servicing the needs of the general populace. A continuation of this deal would be a lifeline for these refineries, a move which would help in their finance management, and enable them to bypass the dollar scarcity that has plagued Nigeria’s economy. The decision to suspend this deal, however, is a clear indication that the NNPCL is more interested in frustrating local refineries than in supporting them.
With this decision made, the NNPCL has effectively pulled the rug from under the feet of local refineries, leaving them at the mercy of a volatile foreign exchange market. This move is not just ill-advised; it is a deliberate act of economic sabotage. This decision, shrouded in secrecy and driven by questionable motives, is a betrayal of the Nigerian people and a slap in the face of a nation striving for self-sufficiency in its energy sector. It is time to ask: What does the NNPCL want again? And why does it seem hell-bent on frustrating the growth of local refineries?
The tenure of Mele Kyari as the Group Chief Executive Officer of the NNPCL has been a complete disaster over the years. The NNPCL has been a definition for corruption, inefficiency, and mismanagement under his leadership. With all the recent happenings in Nigeria’s oil and gas sector, one can easily come to a verifiable conclusion that Kyari’s incompetence is very much evident in the fact that, despite the billions of dollars spent on the rehabilitation of Nigeria’s refineries, not a single one has been brought back to full operational capacity, and the much-touted revival of Nigeria’s indigenous refineries remains a pipe dream, a mirage that continues to elude the Nigerian people.
For the Tinubu-led administration, Kyari remains an inherited bane from the previous administration, and he must be flushed for the sector to be healthy. His corruption is very glaring. His leadership has been known for a series of scandals, including the infamous importation of adulterated petroleum products, subsidy fraud, and the mismanagement of crude oil swap deals. These scandals have not only cost Nigeria billions of dollars in lost revenue but have also exposed the people of Nigeria to serious health hazards like respiratory diseases and other health problems.
On a scrutiny of the NNPCL’s policies, it appears very meticulously orchestrated to thwart the progress of local refineries for a particular hidden agenda. The dollar-denominated crude procurement, which the local refineries are compelled to engage in, would exacerbate their operational cost leading to a financial strain, and rendering them less competitive. This NNPCL’s strategy ostensibly perpetuates Nigeria’s dependency on imported petroleum products, thereby sustaining the lucrative corrupt profits made on importation by some high-level cabals.
Furthermore, the NNPCL’s anti-local refinery policies are a medium to stifle the growth of Nigeria’s domestic refining capacity, thereby depriving the country of the economic benefits that would accrue from a robust local refining industry. Undoubtedly, it is general knowledge that the establishment of local refineries would create thousands of jobs, stimulate economic growth, and reduce Nigeria’s dependence on imported products. Yet, under Kyari’s leadership, the NNPCL has done everything in its power to frustrate the efforts of local refineries to achieve these objectives.
It is clear that Kyari’s continued leadership in the NNPCL is untenable, and the crescendo of discontent has culminated in vehement calls for his resignation. His leadership is a disaster to Nigeria’s global status, and his continued presence at the helm of the NNPCL is a threat to the nation’s economic and energy security.
Therefore, to avert further catastrophe, it is obvious that the NNPCL must replace its present leader with someone who will institute comprehensive reforms, prioritise the revitalisation of local refineries, and eradicate the pervasive corruption that has stymied progress in protecting Nigeria’s national interest. It needs a leader who will ensure that Nigeria’s vast hydrocarbon resources are used to benefit the Nigerian people, rather than being squandered through corruption and mismanagement.
As it stands, the NNPCL’s war against local refineries is a betrayal of Nigeria’s national interest and evidence of the failure of Mele Kyari’s leadership. Under his watch, the NNPCL has become a tool for economic sabotage, a vehicle for corruption, and a symbol of incompetence. The policies made under Kyari have systematically undermined the viability of local refineries, perpetuated economic dependency on fuel imports, and engendered widespread corruption. We ask ourselves, of what use is a leader, without evidential growth and progress to show for his work?
What many Nigerians don’t understand is this: our indigenous refineries are not only competent, they are also fully capable of meeting domestic demands, and they have demonstrated their capacity to compete on a global scale if given the necessary support. The suspension of the naira-for-crude deal is a calculated move to cause a financial strain for the refineries’ operators and a direct attack on the refineries’ viability. The message is clear: the NNPCL does not want Nigeria to refine its crude. If urgent steps are not taken to reverse this catastrophic decision, Nigeria will once again in no time be plunged into an era of crippling fuel scarcity, unbearable pump prices, and unnecessary reliance on foreign refiners.
The exigency of this situation necessitates Mele Kyari’s immediate resignation and the implementation of reforms to salvage Nigeria’s refining industry. Kyari’s resignation is not just a matter of honour; it is a necessity for the survival of Nigeria’s oil and gas sector. Only then can Nigeria hope to achieve energy security, economic growth, and industrial transformation. The clarion call for accountability and transparency must resonate across all strata of governance to restore the integrity of Nigeria’s oil and gas sector.
The time for change is now. The time for accountability is now. Nigerians deserve transparency and justice. Mele Kyari must go.
Ike PhD wrote this piece from Zaria, Kaduna State.