Sanusi Warns Tinubu Against NNPC’s Lack of Transparency Business
Former CBN governor Sanusi Lamido Sanusi has advised President Bola Tinubu to appoint a minister of petroleum resources who can hold the NNPC accountable for its oil revenues and operations.
Sanusi, who spoke at the Bank Directors Summit in Abuja on Thursday, said the NNPC was the most opaque oil company in the world and had failed to remit enough foreign exchange to the government despite the removal of fuel subsidy.
He said the idea of the president becoming the petroleum minister was not a good idea, as it would make it difficult for anyone to question the NNPC’s activities. He cited the example of his predecessor, ex-President Muhammadu Buhari, who held the position for eight years and faced no scrutiny.
Sanusi also criticized the monetary policies of the last eight years, which he said had led to rising inflation and economic downturn. He called for a stable exchange rate and a proper audit of the NNPC to track the country’s daily oil production, export, and revenue. He said he was suspended as the CBN governor for raising these issues and vowed to continue asking them until the NNPC fixed them or until he died.
Sanusi also urged the National Assembly to resist the pressure to amend the CBN Act and the BOFIA, saying they were among the best central banking laws in the world. He said the problem was not with the rules but with the implementation and the lack of consultation with the stakeholders. He said the banking sector must shore up its trust deficit in the eyes of the public and partner with the government to achieve the objectives of growth and reforms.
President Tinubu, who was represented by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the government was working on addressing the challenges facing the financial system and the foreign exchange market. He said the government would ensure to follow the law and do the right thing, but it would take time to adjust. He also revealed plans to develop a financial regulatory framework to develop the country’s economy.
The NNPC, however, said it was focused on delivering its mandate and would not respond to every individual’s opinion. It said it was working on delivering energy security, managing ongoing projects, and implementing reforms. The NNPC has been accused of corruption and mismanagement of the country’s oil wealth for decades, with several reports and investigations exposing its shady deals and practices.
However, the corporation has also claimed to be making efforts to improve its transparency and accountability, such as publishing its audited financial statements, reducing its operational costs, and increasing its remittances to the federation account.
The oil and gas sector is vital for Nigeria’s economy, as it accounts for about 90% of its foreign exchange earnings and 60% of its government revenue. However, the sector has also been plagued by insecurity, environmental degradation, regulatory uncertainty, and infrastructural decay.
The government has been trying to reform the sector through the Petroleum Industry Bill, which aims to overhaul the legal and fiscal framework of the industry and create a conducive environment for investment and development. The bill, which has been pending for over a decade, was recently passed by both chambers of the National Assembly and is awaiting the president’s assent.
The bill is expected to address some of the issues raised by Sanusi and other stakeholders, such as the governance and accountability of the NNPC, the fiscal terms and incentives for the operators, the host community development, and environmental protection. The bill is also expected to unlock the potential of the sector and enhance its contribution to the national economy and the welfare of the citizens.
Source: Punch
