Don't Miss


Home   >   Business   >   Industries   >   Energy   >   Stop direct crude allocation to NNPC – ANEEJ

Stop direct crude allocation to NNPC – ANEEJ

By on August 21, 2015

The Africa Network for Environment and Economic Justice has asked the Federal Government to stop direct crude allocation to the Nigerian National Petroleum Corporation.

In a statement on Tuesday, ANEEJ Executive Director, Mr. David Ugolor, said, “We call on the government to cancel the direct crude allocation to the NNPC.

“According to a report by the Natural Resource Governance Institute, the NNPC sells 639,983 barrels per day to unidentifiable companies in a Joint Venture equity oil arrangement that smacks of mismanagement and lack of accountability.

Formed nearly 38 years ago, the NNPC has been mired in allegations of corruption, mismanagement and lack of transparency in its financial obligations to the Nigerian state.

It added, “If indeed the NNPC must begin to do things differently, a minister of petroleum can no longer sit on the board of the NNPC as chairman.”

The group observed that dwindling fortunes of Nigeria and the mismanagement of oil proceeds underscored the importance of reorganising the NNPC for optimum efficiency.

On August 4, President Muhammadu Buhari relieved Dr Joseph Dawha of his appointment as the Group Managing Director of the NNPC.

He subsequently appointed former Executive Vice Chairman and General Counsel of Exxon-Mobil (Africa), Dr Emmanuel Kachichuwku, as Dawha’s replacement.

ANEEJ also welcomed the appointment of the new Group Managing Director for the NNPC, saying that the alleged plan to split the NNPC in two may introduce the much-needed reform that the oil and gas industry in Nigeria truly needs.

“We also task the new NNPC GMD with developing a clear revenue collection framework and introducing the selling of crude to end users rather than to governments and briefcase companies,” Ugolor said.

 

[Punch]