Senate Probes NNPC's N210 Trillion as New CEO Ojulari Faces Challenges
The Nigerian Senate's Public Accounts Committee is currently scrutinising the Nigerian National Petroleum Company Limited (NNPCL) over alleged financial irregularities. This investigation, spanning from 2017 to 2023, could lead to increased financial oversight and potential regulatory changes, affecting NNPCL and its international partners. Meanwhile, NNPCL's new CEO, Bayo Ojulari, faces challenges in reforming the company, with questions raised about his connections and prudence.
Ojulari's task is daunting, given the company's past reputation as a 'caretaker-eating animal'. His predecessor, Ibe Kachikwu, even threatened to resign due to the government's failure to address NNPC's issues. Now, Ojulari must tackle these challenges with the support of the board and President Buhari. The recent loan failure involving Saudi Aramco and the sale of ExxonMobil assets to Seplat have added to his difficulties.
The Senate's investigation centres around alleged discrepancies in NNPC's audited financial statements, with insinuations of over N210 trillion unaccounted for. This follows former Governor Nasir El-Rufai's accusation that NNPC operates as a 'parallel government'. Meanwhile, the Petroleum Industry Act (PIA) aims to make the oil and gas sector more investor-friendly, but faces obstacles such as regulatory bottlenecks and infrastructure deficits.
Questions have also been raised about Ojulari's connections to former Vice President Atiku Abubakar, following Haske's company providing jets for NNPCL's board retreat in Kigali, Rwanda. Haske, a contractor allegedly linked to Ojulari in deals worth $21 million or $31 million, has provided services for NNPCL for nearly 20 years.
The ongoing investigation into NNPC's financial affairs could lead to significant changes in the company's operations and its international partnerships. Meanwhile, Bayo Ojulari continues to face challenges in reforming the company, with questions about his connections and the political naivety that has hindered his efforts. The success of his reformist agenda will be crucial for Nigeria's oil and gas sector and its economic future.
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