Former Vice President of Nigeria, Atiku Abubakar, has called for the listing of the Nigerian National Petroleum Corporation (NNPC) Limited on the Nigerian Stock Exchange (NGX) amid controversy surrounding the alleged privatization of the Warri and Kaduna refineries.
Paul Ibe, Abubakar’s spokesperson, disclosed this in a statement on Sunday, following accusations that NNPC Limited is attempting to transfer the operation and maintenance of the two refineries to private firms.
Quoting Atiku, Ibe emphasized that listing the national oil company on the stock market would foster much-needed transparency in the company’s operations and enhance corporate governance.
“Former Vice President of Nigeria Atiku Abubakar has demanded the immediate listing of the Nigerian National Petroleum Corporation Limited (NNPCL) on the stock exchange in line with the Petroleum Industry Act.
“Atiku said this in reaction to the decision of the NNPCL to hand over the Warri and Kaduna refineries to private operators who are expected to manage and operate them.
“The NNPCL is supposed to have been listed on the stock exchange in line with the Petroleum Industry Act. This would make the company more profitable and enhance transparency and corporate governance.
“Currently, the NNPCL claims to be private, but this is only a ruse to fool the feeble-minded because it remains the ATM of the Federal Government. Anything short of listing the NNPCL on the stock exchange is nothing but a cosmetic development,” the statement read in part.
Backstory
Nairametrics earlier reported that NNPC is seeking private firms to manage and maintain the operations of Warri and Kaduna refineries following decades of being in a moribund condition.
- In a circular issued by the oil company, the firm is expected to be qualified to ensure that the refineries produce petrol as well as foster energy security in the country.
- The circular further indicates that the tender process for the refineries will be handled as a single tender, conducted in three stages—Expression of Interest (EOI), Technical, and Commercial.
- According to the circular, this process will take advantage of all possible cost-saving opportunities related to the procurement of consumables, personnel management, and the use of systems such as Computerized Maintenance Management Software (CMMS) and Warehousing Management System (WMS).
- Moreover, this has been perceived as NNPC’s attempt to privatize the two moribund refineries, with many demanding that NNPC disclose to the public the full extent of the deal.
What you should know
The Kaduna and Warri refineries are two of the four refineries owned by the Nigerian National Petroleum Corporation (NNPC) Limited. These state-owned refineries, located in Port Harcourt, Kaduna, and Warri, have been a critical part of Nigeria’s energy infrastructure for decades.
- However, their lack of functionality has forced the country to rely heavily on imported refined petroleum products, significantly impacting the economy.
- Recently, NNPC’s Group Managing Director, Mele Kyari, assured the public that the Port Harcourt refinery would begin operations last month. He further stated that the refineries in Kaduna and Warri are expected to commence operations in the second half of 2025.
- Despite this optimistic projection, there is widespread skepticism due to previous unmet deadlines for the resumption of refinery operations.
This history of missed targets has led many to question the feasibility of the current timeline.
