A Nigerian energy expert, Kelvin Emmanuel, has frowned at the Nigerian National Petroleum Company Limited (NNPC), criticizing the its poor performance and its contribution to the depreciation of the naira.
Emmanuel, who is also the Chief Executive Officer of Dairy Hills, stated that NNPC remittances to the Central Bank of Nigeria (CBN) have drastically reduced, from $3 billion per month to barely 10% of that amount. This significant decline, Emmanuel argued, has had a devastating impact on the nation’s economy, particularly on the value of the naira.
“This explains why the currency has dropped by at least 90% in a decade,” Emmanuel said, highlighting the severe consequences of NNPC decline on the nation’s economy. “The company’s failure to meet its revenue targets and its inability to run itself successfully have contributed significantly to the economic challenges facing Nigeria today.”
Emmanuel’s comments raise critical questions about the purpose of a state oil company like NNPC if it cannot run itself successfully. His statement has sparked a conversation about the need for urgent reforms in the oil and gas sector to prevent further economic downturn.
The NNPC has faced criticism in recent times for its operational inefficiencies, lack of transparency, and failure to meet its revenue targets. Emmanuel’s comments underscore the need for the company to be overhauled and repositioned to drive economic growth and stability in Nigeria.
“Nigeria needs a functional and efficient national oil company that can compete with other international oil companies,” Emmanuel said. “The current state of NNPCL is unacceptable, and urgent reforms are needed to restore the company’s viability and contribute to the nation’s economic growth.”
The Nigerian government has been working to reform the oil and gas sector, including the passage of the Petroleum Industry Act (PIA) in 2021. However, the implementation of the reforms has been slow, and the sector still faces significant challenges.
Emmanuel’s comments highlight the need for the government to take bold steps to address the challenges facing the oil and gas sector. This includes ensuring transparency and accountability in the sector, promoting competition, and investing in infrastructure and human capital development.
As the Nigerian economy continues to face significant challenges, the need for urgent reforms in the oil and gas sector has become more pressing. Emmanuel’s comments serve as a wake-up call for the government and stakeholders in the sector to take bold steps to address the challenges facing the sector and restore the viability of NNPC.
SOURCE: foitball24hours