Almost every group managing director of the Nigerian National Petroleum Corporation (NNPC) has promised to make landmark reforms that would revolutionise the oil and gas industry, but unfortunately, those promises ended up as mere expressions of desires.
For instance when Emmanuel Ibe Kachikwu became the group managing director of NNPC in 2015, his first major pronouncement was to the effect that the downstream sector of the petroleum sector would be deregulated, Petroleum Industry Bill (PIB) would be passed and the refineries would be up and running again. Unfortunately, he was swallowed in the political intrigues of the powers that be.
These promises marked the less than flattering legacies of the two men who ran NNPC before Mele Kyari.
When Maikanti Baru came on board, he promised to end importation of petroleum products by making the refineries work, alas he was wrong. Today, the refineries are not working while the import bills continue to rise at the expense of other critical sectors of the economy. The Petroleum Industry Bill was passed by the National Assembly but the president refused to give his assent.
Agitation for subsidy removal by well meaning Nigerians and international organisations that mean well for the Nigerian economy has remained a constant decimal.
Observers have said that all these issues persist till date because of lack of political will by the executive arm of government to tackle them headlong, lack of sincerity or both.
Part of the reasons why the government is not acting on some of these according to industry observers is because the various governments that have been in power, including the incumbent All progressive Congress headed by President Muhammadu Buhari have allegedly been entrenched in corrupt practices.
The NNPC has been reputed as the cash cow of all the governments that come to power till date. But they heap the whole blame on NNPC. As if it would act without directives from the presidency.
A question often lingers; can corruption thrive in NNPC without the active support of the executive arm of government?
Now Mele Kyari, the newly appointed group managing director is also following the familiar terrain with promises to fix the refineries and stop importation of petroleum products, and ensure that the PIB is passed.
However, it remains to be seen if Kyari who has been praised by NEITI and other international agencies for his transparency, will be able to succeed where others have failed. The same government that appointed the previous NNPC group managing directors is the one he has to work with. So what will he do differently that would ensure refineries, which have been challenged in the last 20 years would be resuscitated within the next three and half years?
During the Society of Petroleum Engineers (SPE) conference and exhibition in Lagos he was frank to admit that his organisation is challenged and it needs to get its act together. He said,‘’Today, NNPC is challenged by the reality of our environment. Because our refineries are not operating optimally and today we have become a net importer of petroleum products. It is a very big shame for us as a nation and as professionals. We can give excuses, but whether you are a chemical engineer or Petroleum Engineer it is a shame that this nation is a net importer of petroleum products and we are going change it”.
According to Diran Fawibe, chairman and chief executive officer of International Energy Services (IES), the lack of political commitment and tenacity of purpose by the executive arm of government, rank high among reasons the refineries are not working.
He said even when the repairs are budgeted for, the amount of money that would be released might be too small to meet the needs of the refineries.
Another industry operator who retired from NNPC was of the opinion that politicians will not allow Mele Kyari to work even if he wants to.
According to him, too much of political interference from politicians who want to bring products into the country may make the comments by Mele Kyari end up being mere expressions just like his predecessors.
Another thing he said, is that the actual amount that can really bring the refineries on stream may be considered too much, therefore the management of the refineries may begin to make some short cuts, thereby compromising the required work.
