In December 2023, the Lagos Chamber of Commerce and Industry (LCCI) echoed a sentiment long held by many Nigerians and reaffirmed by the World Bank: the Nigerian National Petroleum Company Limited (NNPCL) and other Government-Owned Enterprises (GOEs) have been plagued by opacity and inefficiency. “We share similar views with the World Bank on the opacity and underperformance of the NNPC and other GOEs,” said Chinyere Almona, Director-General of the LCCI, in a statement that should have served as a wake-up call for the NNPCL to embrace transparency and accountability.
The ongoing fuel scarcity, worsened by soaring prices, has left many Nigerians questioning the effectiveness and integrity of the NNPCL. With the country heavily reliant on imported refined fuel, frequent shortages and price hikes are becoming an unfortunate norm.
“When the frog in front falls into a pit, others behind take caution.” The NNPCL is the “frog in front,” and its current trajectory serves as a warning to other stakeholders in the oil sector.
The calls for transparency are not new, but they are becoming more urgent. Many, like Banire, have pointed fingers at the NNPCL for being responsible for the systemic issues in Nigeria’s oil sector. From fuel smuggling to the black-market trade of petrol, the NNPCL is often seen as the root of the problem. Banire’s frustrations are not unfounded, but his sweeping claims beg for clarity and evidence. Do unpatriotic marketers who divert fuel meant for Nigerians to neighbouring countries act on behalf of the NNPCL, or are they simply exploiting the system’s weaknesses?
Just when the decibels got high, that NNPCL should come out clean on its dealings, it announced vacancies and Nigerians crashed the application portal in no time, applications flooding right left and centre. Has there been any hiring so far? Your guess is as good as mine.
A few weeks ago, the NNPC Limited released its 2023 Audited Financial Statement (AFS), and it almost felt like a joke. Still, I thought it was a good step forward. They declared a net profit of ₦3.297 trillion for the financial year ending December 2023. I gave them credit—small wins should be celebrated, right? After all, that was a 28% increase (over ₦700 billion) compared to the 2022 profit.
However, just days later, fuel suppliers turned their backs on NNPCL due to a $6 billion (₦9.9 Trillion) debt for PMS (petrol). This raises a serious question: What kind of audit fails to account for such a massive financial obligation?
Regardless of the answer, one thing is clear: the NNPCL must embrace greater transparency to restore trust and improve the affordability, access, and availability of Premium Motor Spirit (PMS) across Nigeria.
Why Transparency Matters
An Itsekiri adage says, “If the root of the tree is strong, the branches will flourish.” In the case of the oil sector, the NNPCL is the root. If it continues to operate behind closed doors, hiding crucial details about fuel imports, costs, and pricing mechanisms, the entire sector will remain brittle. The Nigerian public deserves to know the true cost of the fuel they consume and the factors driving price fluctuations. Transparency would also serve as a deterrent to corruption, allowing for more effective regulation of marketers and depots.
Furthermore, the public’s growing frustration over the handling of fuel distribution is a sign that a reckoning is on the horizon. Without transparency, the NNPCL will continue to lose credibility, and the public’s trust will erode further. To put it bluntly, “If the snake doesn’t show its tail, you can’t tell its length.” The NNPCL must show its tail—open its books—to allow Nigerians to fully grasp the scale of the challenges facing the sector.
Fuel smuggling and black-market sales are part of the tangled web that prevents affordable access to fuel in Nigeria. Reports of marketers diverting petroleum products to neighbouring countries are troubling, and the NNPCL cannot continue to turn a blind eye. The government must enforce stricter measures to curb these illegal activities, but such measures must be supported by a transparent system that allows the public to hold marketers accountable.
A more transparent NNPCL would help curb the illegal sale of petroleum products by creating a more robust monitoring system. The river that forgets its source will dry up. The source of Nigeria’s fuel supply is the NNPCL, and without transparency and accountability, the sector risks drying up entirely. NNPCL must open its books!
Restoring Affordability and Access
Nigerians are being forced to pay exorbitant fuel prices, with many filling stations charging between ₦1,000 and ₦1,300 per litre. The effects of this are felt not only at the pump but throughout the economy, as transportation costs soar and the cost of living rises. Transparency within the NNPCL could help stabilise prices by revealing where inefficiencies and corruption lie. NNPCL could help restore some semblance of affordability to the fuel market by addressing these issues head-on.
Moreover, improved transparency would allow the government to better regulate the sector, ensuring that fuel imports meet domestic demand and that pricing mechanisms are fair and consistent. Without such measures, the current crisis will only worsen, and Nigerians will continue to bear the brunt of a system that fails them.
Our elders are wont to say, “It is the calm and silent water that drowns a man.” The silence of the NNPCL on the current fuel crisis is deafening, and its lack of transparency threatens to drown the nation in an ocean of unaffordable fuel prices, scarcity, and distrust. NNPCL must heed the calls for transparency and open its books. Only then can Nigeria begin to restore the affordability, access, and availability of PMS, and ensure that the oil sector works for all Nigerians, not just a select few.
