14-03-03 This article does not intend to address the numerous leakages and unorthodox practices that exist at the NNPC in siphoning the resources of Nigeria. It is a contribution to the specific controversy between the NNPC led by Jackson Gaius-Obaseki and the Revenue Mobilization Allocation and Fiscal Commission, (RMAFC) headed by Engr. Hamma Adama Tukur.
As a public affairs commentator, I observed with keen interest the fact that Engr. Tukur has consistently for over six months now posed very simple, specific questions to the NNPC hierarchy and until today, those specific questions remain valid and unanswered. It has been noted from the defenders of the NNPC position that Engr. Tukur's claims that a princely sum of N 300 bn went missing from the NNPC's account, were at best mere insinuations that have no basis.

Also cast in this mould are the issues of Nigeria's OPEC quota being 1.7 mm bpd and not 1.8 mm barrels, and the fact that government's shares in the joint venture operations is 53 % of Nigeria's OPEC quota and not 60 % as claimed by RMFC. These naturally are intended to confuse the general public as stakeholders. It is not N 300 bn but probably N 200 bn that is actually or might be the correct figure.
However, it is instructive to note that it was nowhere stated that N 300 bn went missing from the NNPC account. Equally instructive is the fact that the explanation of the OPEC quota or less percentage share holding of the NNPC in the joint venture, or the fact that a top government delegation visited Tukur to explain to him how NNPC is being run could convince an apprentice. Simply put, they cannot be deemed satisfactory in addressing the problems with the NNPC management of our domestic crude allocations.

For the avoidance of doubt, the issue at hand is that Tukur's commission observed that the NNPC short-changed the nation to the tune of an estimated N 300 bn in 2002 alone through the management of its domestic crude oil allocation. The way this happened is simple as presented by thecommission and corroborated by the Minister of Finance who has also been calling for the probe of NNPC's books.
The whole of 2002 witnessed the allocation of 445,000 bpd of crude oil to the NNPC at the rate of $ 18 per barrel. This was to enable enough supplies and at the regulated price of N 26/litre. However, for the better part of 2002 petrol was sold at N 60/litre at Aba, Wukari and Bauchi which was above what was being sold at the unregulated international market. Presently, 4.5 litres is sold at $ 1.8 in Washington DC translating to N 50/litre.

In the whole of 2002 our refineries did not receive up to 223,000 bpd out of the 445,000 barrels duly allocated to them as crude oil to refine. Constrained by capacity utilisation, not hampered by lack of raw materials but by deliberate non-functioning of machinery. Statistics also exist on this fact. For example, in January, February and March 2002 NNPC received 39,002,554 barrels of crude oil and only 19,710,668 was refined to be consumed at home, while the balance of 19,291,886 barrels was exported, representing 50 % of its allocation.
In the whole of 2002 NNPC sold the excess crude oil at the spot market price being a minimum of $ 30 per barrel as against what Nigerians are selling it to them at $ 18 per barrel, thus, finding a lucrative business. The profit NNPC reaped from this is estimated to be N 300 bn in 2002 and it pays it into its accounts in CBN. This business money is managed by Joseph Sanusi, Jackson Obaseki, and Olusegun Obasanjo only, to the exclusion of the Federal Ministry of Finance. Yet, budgets are not implemented through releases to various sectors of the economy.

Nigerians, including the Minister of Finance are not satisfied with the management of this money despite the publishing of its doctored, shadow accounts and this displeasure is being ventilated through no other person than the distributor of our moneys to all tiers of government, Engr. Hamma Adamu Tukur.
The pragmatic understanding of the fears being expressed by RMAFC is not the missing of N 300 from the NNPC account like it was in the case of N 2.8 bn. The NNPC is short-changing the nation to an extent that our refineries are not working, fuel scarcity is becoming the order of the day. It is indeed the poor management of the affairs of the NNPC that is causing the present queues in the filling stations while NNPC is blaming it on panic buying and an arranged DPR strike to cover its inefficiency and corrupt practices.

Therefore, I will differ from the usual debate in establishing figures and define the RMAFC position of short-changing, to mean leakages, stealing and a systematic fraud that is being perpetrated by the NNPC using its existing statue and specifically to enrich highly favoured individuals to the detriment of the majority of Nigerians.
It is true that the statue establishing NNPC allows it to maintain the CBN accounts. However, the constitution of the Federal Republic of Nigeria also voided this arrangement by directing that all monies accruing to Nigerian government should go to the federation account first and latter to be appropriated. Therefore, the National Assembly has a duty to look and rectify all the identified lapses that encourage the existence and continuing fraud at the NNPC.

Two Nigerians whom I respect in their intellect and investigations convinced me that there is massive fraud through leakages in the NNPC on the domestic crude oil utilisation and importation of refined products into the country. Professor Jibril Aminu, the Nigerian Ambassador to the United States of America, whilst commenting on the availability of petroleum products and the disappearance of fuel queues has equivocally asked, "At what cost are we having the products?"
It was Sam Nda Isaiah in his Monday column on February 3, 2003 that X-rayed the leakages and fraud in the NNPC by reporting that shortly before Obasanjo came upon us like a storm on May 29th 1999, the country was importing petroleum products at the cost of $ 234.00 per ton during Abacha and Abdulsalami regimes, but shortly after Obasanjo assumed office, this was reviewed upward without rhyme or reason to $ 569.55 per ton, a whopping 143 % increase.

What a lucrative business! Is there any surprise that our refineries are not working? I expected Justice Akanbi, if he is above board to have invited Sam and Obaseki on this fundamental fraud and leakages in the NNPC. For all the talk of transparency and the following of procedures and statue establishing the NNPC, the compliance to procedure is least obtainable in the NNPC than any other government agency.
Statutorily, it is not the responsibility of NNPC headquarters to import refined products as their advertisement always calling for tender is showing. It is the responsibility of its subsidiary company, PPMC, a limited liability company with a bona fide Board. The PPMC would have been allowed to determine its market requirements, advertise for tender, select the competitive offer and only when the limit of approval is above its board, then arecommendation to the NNPC Board is forwarded through the Managing Director of NNPC to the President for approval.
However, it is very glaring even when influential people like Ciroma Keffi is chairing the board of PPMC, the issue of fuel importation is personally handled by Dr Jackson Obaseki and probably the Presidency using the CBN account at inflated price of $ 569.55 per barrel when the on-going market landing price is within $ 300 per barrel.

This is what RMAFC called short-changing the nation and not the missing of N 300 bn in NNPC account as the picture is being painted. The issues are that we are not getting value for our money and few people are getting rich. This dislocation is what Engr Tukur has been fighting to block.
As usual of Nigerians, this fundamental national issue that should make Presidents and Head of such corporations resign is being reduced to blackmail. Somebody wrote that the issues of account with CBN and missing 300 bn naira broke shortly after the NNPC said it had no budget to meet the demands of the commission for sponsorships to Qatar, Indonesia, Mexico and Venezuela on first class tickets and two months estacode to go and study the management of oil operations.

Can you resolve these rubbish diversionary tricks with the pedigree of the commission and the resources at their disposal? The fact remains that NNPC accounts must be probed and all their budgetary requirements must go through federation account for appropriation. NNPC cannot fund its operations from first line charge.
It is unconstitutional. Nor should NNPC be allowed to keep a separate account in CBN for the mismanagement of our crude oil. When are we going to change our systems to work like other nations we envy? Why should we continue to import from refined petroleum products, rice, beans, chicken, fertilizer, toothpick and yet, 9 out of every 10 graduates in Nigeria today have no job?

Today, there is increasing poverty, weak productive base, collapse of infrastructure, high crime rate indicating 2/3 of Nigerians living less than $ 1 per day. Yet, we have parasite elites, people with 50 exotic cars with N 50 bn in their account without a factory to produce a toothpick. How much does it take to establish a new refinery by the way?
It is only Nigerians that can decide.