The alleged $1.1trillion crude oil diversion

THE allegation that about $1.1trillion worth of crude oil has been diverted by the Nigerian National Petroleum Corporation (NNPC) in the last one year is a grave one. The allegation, which emanated from the Peoples Democratic Party (PDP), a leading opposition party, maintained that 18 unregistered companies were used to lift and carry out the alleged diversion. The party also accused the All progressives’ Congress (APC)-led government of keeping mute over reports of monumental sleaze in the oil sector.  The magnitude of the alleged fraud and the timing of the release of the information on it are both significant. The size of the alleged sleaze is so huge that no responsible government can afford to ignore it. Even if the Federal Government is convinced that the allegation is false, it owes it a duty to Nigerians to debunk the allegation with proofs.And proofs usually come out after inquiry. Again, this allegation and the biting fuel scarcity that has subsisted beyond the officially-promised remediation period tend to lend credence to the existence of huge and fundamental challenges in the oil sector.Though without any explanation, the PDP has even claimed that there is a nexus between the lingering fuel scarcity and the alleged corruption in the oil sector.

Notwithstanding the source of this serious allegation and any suspicion about the motives behind it, the allegation should be thoroughly investigated. Indeed, in a government of change, allegations like this should be addressed with dispatch and without external prompting.  Having ridden to power largely on the crest of the positive public perception of his personal integrity and his promise to combat corruption, President Muhammadu Buhari should not brook or be seen to brook any form of corruption in his government. The president should realize that he will continue to be put on the spot time and again because the strongest asset at his disposal is his avowed anti-corruption stance.  The Federal Government must retool the management of its anti-corruption policy both in terms of its response time and thoroughness of inquiry into corruption matters within the government circles. This rejigging is imperative because once the government’s anti-graft war is successfully discredited; its legitimacy will become greatly impaired.And there would appear to be formidable forces working in that direction that no dispassionate observers can condemn because often times they have genuine axe to grind with the Federal Government’s handling of public resources, especially the oil sector-related funds. This is one compelling reason why the FG should quickly come clean on this allegation of official fraud in the sector.

The attention which the operation and management of the oil sector has attracted should be understood against the backdrop of its huge and significant contribution to the national economy. Today, oil is still the mainstay of the country’s economy and because in addition to collecting royalties, government is also participating directly in its production, oil will for a while continue to make enormous and direct contribution to the national coffers. The implication is that any issue around inefficiency and malfeasance in the oil sector impacts all tiers of government and indeed everyone.  Thus, it should not be surprising and the Federal Government should not take it badly that many people and groups are showing more than a passing interest in what goes on in the oil sector. On the contrary, the Federal Government should ensure that the sector operates more transparently and act with dispatch when flags are raised on the integrity of the sector operators and managers. For instance, the NNPC needs to operate with improved levels of prudence, efficiency, transparency and accountability. A situation where NNPC operates largely as a detached government parastatal that is unaffected by rules and regulations guiding other  government agencies can only raise suspicions of, and encourage,  wrongdoings.  Of course, there will be wolf criers and alarmists with less than altruistic motives; it is the duty of the government to put a lie to mendacious information through prompt, independent and painstaking inquiries.

To be sure, we see allegations for what they are; mere accusations yet unproven. But it is usually tidier to ascertain the veracity of any claim no matter how seemingly frivolous, especially where the critical stakeholders are all Nigerians whose interest necessarily transcends the ego of the ‘accused’.  For instance, in the matter at issue, it would appear somewhat difficult to fathom how the PDP came up with a figure of $1.1trillion. On the face of it, all related statistics in terms of daily oil production quantum and the average international price over the referenced period could not have possibly yielded the staggering number but that cannot be sufficient justification to discountenance the allegation. A more professional and thorough inquiry may yield much more valid outcomes than the perfunctory observation noted above. We urge that the PDP’s allegation be investigated without further delay because even if it turns out that the PDP’s story is embellished, the NNPC cannot claim that it does not have challenges, at least not in the face of the lingering nationwide fuel scarcity.