Atiku Abubakar Criticizes Federal Government's Directive on Crude Oil Revenue Remittance

 Atiku Abubakar Criticizes Federal Government's Directive on Crude Oil Revenue Remittance

Former presidential candidate Atiku Abubakar has criticized the federal government's directive to remit revenue from crude oil sales to the Central Bank of Nigeria (CBN), terming it illegal. Atiku argues that the move violates the legal status of the Nigerian National Petroleum Company Limited (NNPCL) and jeopardizes the company's autonomy. According to him, state-owned enterprises should not be subjected to arbitrary orders and should maintain control over their finances within the bounds of their establishment laws.

Key Points:

1. Legal Inconsistencies: Atiku Abubakar contends that the government's decision to shift control of NNPCL's finances to the CBN lacks legal and ethical grounds. He emphasizes that the move contradicts the provisions of the Petroleum Industry Act (PIA), which establishes the NNPCL as an independent limited liability company.

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3. PIA Provisions: Atiku highlights that the PIA extensively outlines the formation, structure, governance, and operation of the NNPCL in Sections 53 to 65. He asserts that the government should adhere to these legal provisions and allow NNPCL to function as an independent company with a focus on sound commercial objectives and international best practices in corporate governance.

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5. Context of the Directive: Earlier reports indicated that President Bola Tinubu directed NNPCL to remit all proceeds from crude oil sales to the CBN. The move was seen as a measure to enhance transparency and accountability in the oil and gas sector. However, Atiku challenges the legality and ethical foundation of such a directive.

6. Support for the Directive: On the other hand, Senator Ali Ndume, the chief whip of the Senate, supports the government's decision, describing it as constitutional. He believes that the move will promote accountability, and he suggests that other government agencies generating revenue should follow a similar process.

The debate surrounding the directive reflects the broader discussions on governance, transparency, and adherence to legal frameworks in Nigeria's oil and gas sector. Atiku's stance underscores the need for a legal and procedural foundation for such directives to ensure compliance with established laws.