The Chairman of Alliance for Economic Research and Ethics Ltd, Dele Oye, has condemned the Federal Government for celebrating recent reforms in the country’s energy sector, stressing that such moves by the government have nothing to do with the daily struggles of Nigerians.
Reacting to a 13-page report by the Office of the Special Adviser to the President on Energy entitled “Nigeria’s Energy Sector Reforms: A Three-Year Review (2023 – 2026),” Oye lamented that the Federal Government’s claims about reforms in the energy sector do not jell with the challenges faced by individuals and corporate organisations in the country. He stated that Nigerians are continuing to struggle with high fuel prices, inconsistent power supply and increasing cost of production.
According to Oye, under the surface of the government’s euphoric rhetoric, there is a worrisome financial development in Nigeria National Petroleum Company Limited (NNPC Limited), which now owes its companies N30.3 trillion, compared to N17.78 trillion recorded in 2023.
This increase, according to him, amounts to nearly 70 percent, taking into account that NNPC Limited has recently published its 2024 financial year end statement.
It is a concern he highlighted regarding how such an escalation begs many pertinent questions on issues of inefficiency, governance, and sustainability within the energy reform process that is underway.
Breaking down the numbers, Oye explained that the state oil refineries in Nigeria have the largest amount of debts.
The Port Harcourt Refining Company owed N4.22 trillion; Kaduna Refining & Petrochemical Company owed N2.39 trillion; and Warri Refining & Petrochemical Company had N2.06 trillion despite expensive rehabilitation work and minimal production over many years.
Also, he added that NNPC Trading SA, the trading arm of the corporation, was in debt for N19.15 trillion, more than twice compared to the amount last year at N8.57 trillion.
The implication in Oye’s analysis is that, despite the positive reform activities being highlighted, there is a continued deterioration in the financial situation of the energy sector.
