Despite publishing the 2018 audited report of its subsidiaries, the Nigeria Natural Resource Charter (NNRC), on Monday, said the Nigerian National Petroleum Corporation (NNPC), was still lacking in transparency and accountability.
This was even as it called for holistic improvements across the National Oil Company (NOC).
The institute in a statement, issued by its Program Coordinator, Ms Tengi George-Ikoli in Abuja, said the Corporation has consistently and still under-performing against an established global benchmark.
Although she commended the NNPC for its commitment to its Transparency, Accountability and Performance Excellence (TAPE) agenda, with the publication of its 2018 audited report, it stressed the need for greater transparency and accountability.
She noted that over the years, the NNPC had consistently under-performed against the NNRC’s global best practice benchmark for optimal national oil company performance which prescribes that national oil companies be accountable to their citizens and government, with well-defined mandates and an objective of commercial efficiency.
Her words: “Holistic improvements across the National Oil Company (NOC) will ‘require clear and appropriate decisions and role of the NOC and how it is financed, corporate governance systems that limit political interference and allow for efficient oversight, and a commitment to transparency and accountability.
“It is expected that the NOCs that will succeed in maximising their potential enterprise value, and thus maximise their revenue contribution to the nation, will be those who succeed at building strong governance along with capital and operational excellence into their culture.”
Similarly, she decried the huge losses incurred by the country’s refineries, stating that unless NNPC’s refineries operate at a minimum of 90 per cent capacity, they would continue to lose money.
“Comparing Norway’s Equinor and NNPC, performance records show that Equinor’s three refineries averaged 92.8 per cent capacity utilisation in 2018 while NNPC’s three refineries recorded 11.21 per cent. A 2015 comparison of average refinery capacity utilisation in the USA of 90.98 per cent and Nigeria of 4.88 per cent is even worse.
“In the area of revenues accruing to government, NNPC’s performance compared to Petrobras (of Brazil), or Petronas (of Malaysia) shows gross inefficiency. Even when benchmarked with similar national oil companies in Africa such as Sonatrach of Algeria and Sonagol of Angola, the NNPC still falls short on different counts,” she said.