Tinubu Asking NNPC To Submit Receipts Of Crude Sales To CBN Is Illegal – Atiku

Posted by African Examiner Featured, Latest Headlines, News Across Nigeria Friday, February 2nd, 2024

(AFRICAN EXAMINER) – Former Vice President Atiku Abubakar has criticized the recent decision by the Federal Government, led by President Bola Tinubu, to instruct the Central Bank of Nigeria (CBN) to take control of crude oil sales proceeds from the Nigerian National Petroleum Company Limited (NNPCL).

Atiku in a statement on Thursday via his official Facebook page, asserted that this move is illegal and undermines the operational independence of the NNPCL.

President Tinubu’s directive, according to available information, mandates the NNPCL to submit receipts for crude oil sales to the CBN for vetting and documentation.

Atiku contended that this directive violates the legal status of the NNPCL, portraying it as an arbitrary order that jeopardizes the operational autonomy of the company.

The former Vice President argued that the president’s order essentially wrests control of the NNPCL’s finances and allocates it to the Federal Ministry of Finance and the CBN.

The PDP Presidential Candidate deemed this unprecedented act as lacking legal and ethical justification and a violation of due process in public administration.

Citing the Petroleum Industry Act 2021 (PIA), Atiku emphasized that the NNPCL, established as an independent limited liability company, must be allowed to operate according to the provisions of the law.

The PIA outlines extensive provisions for the formation, structure, governance, and operation of the NNPCL in Sections 53 to 65 of the Act.

Atiku stressed the importance of respecting the law and allowing the NNPCL to function independently based on sound commercial objectives, international best practices, and standard principles of corporate governance.

According to him, only through such autonomy can the NNPCL evolve into a formidable institution with the technical and financial capacity needed for global relevance in the petroleum industry.

Furthermore, Atiku highlighted that the Central Bank Act 2007 does not confer the responsibility on the CBN to vet transactions or formulate and maintain internal controls and audits in state-owned enterprises, public or private. He advocated for the CBN to adhere to its core functions as outlined in the extant law.

To ensure transparency and accountability in the NNPCL’s operation, Atiku suggested that its bank accounts for crude sales proceeds, including those at institutions like Morgan Stanley, can be monitored by the Nigeria Extractive Industry Transparency Initiative (NEITI) and the CBN.

Additionally, he recommended better selection and reconstitution of the NNPCL board members, potentially including representatives from the CBN and NEITI.