Roundabout
the same time, Nigeria found out that BP was breaking the sanctions imposed on
Ian Smith and Southern Rhodesia by supplying petroleum products to that illegal
regime. The Federal Government in retaliation nationalized BP in Nigeria, that
is, bought the 60 per cent shares held by BP since BP had previously divested
itself of 40 per cent of its shares to Nigerians. The Federal Government also
took over the Port Harcourt refinery, which was operated by BP.
The
government vested the BP shares it bought in NNPC. Esso decided to pull out of
the distributive oil trade and all its shares were bought over by the Federal
Government. Shell (National) was the largest distributor of refined products,
followed by Mobil, then African Petroleum, which had taken the old identity of
British Petroleum. This then was how NNPC almost inadvertently got into the
petrol distribution business. Before long a large chunk of the petroleum
outlets business was with NNPC – AP, Shell (National) Esso, Texaco etc. NNPC
did not exhibit any great interest in running these Federal Government assets
as represented by the companies running petrol filling stations, except
sometimes sending NNPC staff to run these companies.
In total the
NNPC had control of over 700 filling stations throughout Nigeria. At that time,
fuel (PMS) was supplied to the station through trucking contractors, who
ensured that each filling station received its products. In the 70s, a network
of pipelines and tank farms were established all over Nigeria, thus further reducing
the necessity of tankers. In addition, railways carried much of the petroleum
products.
The
experience of Petrobras and Petrominas soon hit NNPC when some of
its leaders decided that NNPC, being an oil company, it should also have
outlets. Petrobras and Petrominas have the largest network of filling stations
in Brazil and Malaysia. They circumstances of Petrobras owning these outlets
were quite different from Nigeria. Brazil had developed the use of alcohol in
place of petrol for the cars manufactured in Brazil and this had to have
outlets to sell alcohol for their cars and vehicles etc.
However in
Nigeria, in pursuit of some half-baked policy that NNPC must be in all aspects
of the industry, NNPC officials started itching to get into the business of
petrol filling station just as it had gone into the refining of crude oil (and
had failed). But that failure did not teach NNPC lessons as to limiting itself
to what it can do and do it well. Since it was receiving 400, 000 barrels of
oil per day for its refineries it continued to do so even when its refineries
were not working. Thus started the genesis of oil subsidies. Government had
also decided to privatise its holdings in the oil distribution companies: thus
BPE was to dispose of government shares in AP (Okocha, then Femi) National
(Mike) Texaco (Dantata) Esso, Agip (Tinubu) etc.
This brings us
to the issue of failing policy cycles or mission creep, which goes nowhere. In
the midst of the scandal of subsidies, shortages and unprecedented cheating, NNPC
embarked again in the business of owning and operating petrol stations. If this
had been their intention all along, why did they allow BPE to sell what has now
become Oando, Forte Oil, Conoil etc. outlets? They already owned it – all they
needed to do was to change the logos to NNPC filling stations and they would
have had nearly 700 petrol stations.
They sold
these, have built several new ones all over the country and now want to build
another 109. One can smell a fat rotten rat of contract awards, leakages etc.
Anyone who has a petrol station knows that it is a rogue’s gallery: owners must
watch constantly and even so, bribery, theft, chicanery are by-words for petrol
forecourts. Why should a leaky organisation like NNPC, which ought to be
reduced, made more efficient, want to go into a business that cannot bring it
any kudos but would further damage its reputation because there is no way NNPC
running petrol stations would not be corrupt and unprofitable. Why put your
hand in a nest of bees?
The acute
fuel shortages at Christmas had become an annual event. No one understands why
but everyone is convinced it is manipulated so that owners of petrol stations
and importers of fuel make a lot of money. When a group is making money in
Nigeria, every conceivable trader, vendors etc. would use the fuel shortage to
make extra money. Why can we not solve this yearly scourge we bring to
ourselves?
This is how
ridiculously and dangerously we have politicized everything that happens in
Nigeria. NNPC has to be careful, to make plans in advance so that the usual
Christmas fuel violatity is stopped. It must rethink its policy to venture into
retail marketing of petroleum products. It is merely stocking up for an
inevitable scandal. (Source: Guardian)
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