NNPC not fit for global competition -Gov Fashola

The Governor of Lagos State, Babatunde Raji Fashola, SAN has noted that the Nigerian National petroleum Corporation (NNPC) was less than suitable to compete with its global competitors.

The Governor who spoke at the George Etomi & Partners (GEP) Speaker-Series in Lagos over the weekend, observed that the NNPC is in dire need of an overhaul in personnel, to enable it drive the desired change needed for the development of the petroleum sector.

“The problem is not our ‘GIFT’ of oil, the problem is us,” he stated. “It is how we have responded to its abundance in our land that has caused us so much pain and loss. In seasons of almost one and half to two decades each, we have had one large scandal after the other which has left us as a people with our hands soiled in oil in utter embarrassment to put it mildly.

“I was a student when the N2.8 billion oil scandal broke in the early eighties. By the 1990s, the numbers were now in billions of dollars, I think about $12 billion, aka the gulf war windfall.

“Of course today, it is now $20 billion that we are asking to be accounted for over only a period of 19 months.

He noted questions continually asked in local and international circles as to why the NNPC is not as efficient as its global competitors. “The Corporation requires reform, especially in terms of personnel. The existing personnel should be replaced with more committed professionals.”

Explaining the level of our vulnerability, Governor Fashola stated, “We import the final products of a resource that is under our land. Imagine if those we import from suddenly become angered and refuse to export to us. Imagine how vulnerable the giant of Africa would be. Add this to our importation of food. It does not look good. Nigeria is heading in the wrong direction.”

Reiterating this position, Former Minister for State for Petroleum, and Partner, Ajumogobia & Okeke, Odein Ajumogobia, SAN warned that if Nigeria fails to efficiently manage its production of oil, as consumption grows, Nigeria may find itself as a net importer of oil, which will have an adverse effect on the economy.

“It is hard to imagine life without oil. Nigeria’s oil industry was set up for what we were doing 50 years ago, and still doing 50years later. The value of oil is in derivatives. With the sort of reserves we have, we will soon run out of oil for a very long time,” he explained.

Fielding questions from participants on the chance of thieves carting away 400,000 barrels of oil every day with Ghana producing just about 150-160 barrels, Odein stated, “With the sort of technology we have today, stolen barrels of oil can be easily traced, so I really don’t see why this is still going on and even on a greater scale.

Governor Fashola further called for significant reforms in the industry by legislations such as the Petroleum Industry Bill, “perhaps not in the model of the current draft, he noted, “but rather one which infuses more transparency into the acquisition process of oil assets, eliminates rent seeking and collection, and focuses on local value added capacity across the spectrum as part of the pre-conditions for participation.”

To drive home his message, Governor Fashola further urged legal practitioners to desist from elevating talk shows on TV as against the proper practice of law as it should be.

“We know the problems; we have so much left undone; so why are we on TV shows every single day displaying and arguing about all sorts?” He asked.

The theme of the lecture was described as timely; given the central role oil has played in the economic life of this country with all of its negative import.

Theodora Kio-Lawson