Sanusi Expresses Concerns Over NNPC’s Accountability After Subsidy Removal
In a thought-provoking address at the Bank Directors Summit organized by the Bank Directors Association of Nigeria, former Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, has raised critical concerns about the accountability of the Nigerian National Petroleum Corporation Limited (NNPC). Sanusi, who served as CBN governor from June 2009 to February 2014, cautioned against President Bola Tinubu occupying the office of the Minister for Petroleum Resources, suggesting it would hinder scrutiny of the NNPC’s operations.
Sanusi, known for his outspoken views, labeled the NNPC as the “most opaque oil company in the world” during his speech. He particularly highlighted the issue of foreign exchange remittance, expressing doubt about the NNPC’s ability to bring in sufficient dollars into the government coffers following the removal of the fuel subsidy.
“The exchange rate needs to be stabilized, and we have to address the fundamental question: why is there no money coming in? Why is the NNPC not able to bring in dollars?” Sanusi questioned. He emphasized the necessity of shedding light on the NNPC’s operations, calling for transparency in oil production, export, and revenue utilization.
The former Emir of Kano underscored the significance of having a separate minister for petroleum, distinct from the president, to ensure accountability and avoid a situation where questioning the NNPC’s actions could be perceived as an attack on the president. He stressed the importance of having a buffer and an accountable minister who can be held answerable by Nigerians.
Sanusi delved into his history with the NNPC, highlighting its lack of audit for 15 years during his tenure at the Central Bank. He reiterated the need for a thorough audit to trace the flow of funds from oil production to export and subsequent returns.
“The NNPC is the most opaque oil company in the world. We paid N11tn in subsidy, and there is no accountability up till now. The National Assembly called the NNPC to bring the documents, but they refused,” Sanusi remarked.
In addition to his concerns about the NNPC, Sanusi addressed the proposed amendment of the Central Bank of Nigeria Act. He expressed his view that there is nothing wrong with the existing act, emphasizing that changing the law is not the solution. Sanusi warned against undermining the independence of the central bank by subjecting it to political control.
President Bola Tinubu, who was represented by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, responded to Sanusi’s concerns. Tinubu affirmed the administration’s commitment to follow the law and implement policies that address short-term liquidity challenges and long-term structural changes in the financial system.
The Bank Directors Association of Nigeria Chairman, Mustafa Chike-Obi, concluded the summit by advocating for consultation with banks in the formulation of regulations, emphasizing the need for collaboration between the government and banks to achieve economic growth and reforms.
As Sanusi’s remarks reverberate through the economic and political spheres, the NNPC remains focused on its mission, according to Chief Corporate Communications Officer Olufemi Soneye. He noted that everyone is entitled to their opinion, and the NNPC’s concentration is on delivering energy security, managing ongoing projects, and implementing reforms.
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