The Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company Limited, Mele Kyari on Wednesday said he has received several death threats from people who are not happy with efforts being made by the federal government to ensure increased transparency, accountability as well as an end to crude oil theft which has seen country recording severe revenue losses.
The revelation by Kyari came just as Nigeria’s oil production has started rebounding as production rose above one million barrels per day (bpd) for the first time since July this year, with daily output for October standing at an average of 1,014,485bpd.
Kyari who made this known while delivering his keynote address in Abuja, at a special summit on legislative transparency and accountability organised by the House of Representatives Committee on Anti-corruption, lamented that Nigeria was losing up to 700,000 barrels of crude daily to oil thieves.
The GCEO at the event which had as its theme: “Enhancing transparency and accountability in the oil and gas sector,” spoke on several key issues bedeviling the petroleum industry.
On crude oil theft, Kyari lamented that the scale of theft was enormous and that the NNPCL had taken down thousands of illegal refineries in the past 45 months.
“Lastly, this industry is in shortfall of a change. I have several death threats to myself. This is the cost of change, when people walk away from things they are used to, to something that’s new, something that will take away value and benefit from them, they will react,” he said.
He, however, said they have been able to restore two trunk lines and have also involved private security contractors who are complementing government security agencies to curb the menace.
On the NNPCL returning to profitability, Kyari explained that in 2018, the company made a loss of N803 billion, which was reduced to N1.3 billion by 2021 and a profit of N687 billion same year.
On why fuel subsidy payment was necessary, the GCEO said, “We need to understand what this subsidy means, today. When petrol comes into this country, we transfer to the marketers at N113 for us to realise the price of N165 per litre. This is reality. So, that means whatever is the cost, anything after that value is subsidy. So, someone has to pay for it. So every difference between 113 and that value is subsidy.”
Kyari also said the NNPCL was open to forensic auditing. This, he said would enable Nigerians know what the national oil company was doing.
In his remarks, the Executive Secretary of Nigeria Extractive Industries Transparency Initiative (NEITI), Ogbonnaya Orji, disclosed that between 1999 and 2020, Nigeria has earned $741.74 billion from oil and gas alone.
He, however, lamented that the data was not being properly used, urging the National Assembly to debate the report laid before the parliament at plenary.
This, he said would, “help in forum like this to be speaking from data and from a point of knowledge.”
Orji said, “NEITI annually, engage the companies to establish what exactly have they paid the government in terms of taxes, royalties, rents, concessions.
Also, the Chairman of Economic and Financial Crimes Commission, (EFCC), Abdulrasheed Bawa, who was represented by the Commission’s Head of Operations, Michael Wetcas, lamented that the complexities in the operations of the oil and gas industry renderers it vulnerable and highly susceptible to money laundering.
According to him, the petroleum industry is characterised by several players and dealers in the supply chain, thus creating avenue for fraud and distortions.
The EFCC Chairman while urging the National Assembly to extend oversight function on the increasing crude oil theft, said the commission was engrossed in the investigation of allegations of crude oil theft in addition to fighting corruption.
He urged government on instituted measures aimed at enhancing transparency in the oil include full disclosures of NNPC Joint Venture arrangements and established clear institutional responsibilities for revenue assessment, collection and report.
On his part, the Chairman, Independent Corrupt Practices and Other Related Offences Commission (ICPC) Prof. Bolaji Owasanoye, was of the view that poor governance structure in the sector has over the years fuelled many anomalies including the menace of Illicit Financial Flows in the sector.
He therefore recommended, “consistent and transparent audits, review and update of contract negotiation practice. More importantly we must discard completely confidential clauses that forbid operators or government from disclosing terms negotiated with parties.
“Given the fact that these agreements are about natural resources being public patrimony and assets confidential clauses that fuel corruption and abuse should be totally outlawed and to strengthen transparency we need legislation for statistical reporting for all oil, gas, and mining companies to publicly disclose revenue received and paid.”
Earlier, in his opening remarks, the President of the Senate, Ahmed Lawan said the initiative by the House committee on Anti-Corruption was a welcome development in the light of recent experience where revenues from oil have been declining because of the lack of transparency
Lawan, who was represented by Chairman Senate Committee on Anti-Corruption and Financial Crimes, Suleiman Kwari added that it has become even more worrisome given the place of oil and gas in the nation’s revenue earnings; theft of oil has been alarming, resulting in inability to meet our production quota.
On his part, the Speaker of the House of Representatives, Hon. Femi Gbajabiamila said due to theft and various acts of economic sabotage, the country has been victim of bad actors determined to achieve great personal wealth at collective expense.
Gbajabiamila therefore said the summit is particularly important for legislators and policymakers to gain valuable insights into the issues and achieve clarity on the actions to take to achieve greater transparency and accountability in the oil and gas industry.
