Dr. Agbai Eke Agbai, a scholar and researcher, says the Nigerian National Petroleum Company Limited (NNPCL) has been unfairly criticised for its alleged failure to remit oil revenue to the federation account.
During an event on Saturday in Abuja, Agbai explained that while the NNPCL has been solely responsible for subsidising petrol for Nigerian consumers, the company’s profits, which should have been directed to the Federal Government for developmental projects, are instead used to cover the massive costs of the petrol subsidy.
This, he argued, has led to misplaced criticisms that the NNPCL is withholding oil revenue, when in reality, the funds have been used to shield Nigerians from the actual market cost of fuel.
He added that this has resulted in revenue losses or reduction in the national oil firm’s profits, which could have been used for developmental projects.
The event, hosted by Chief James Ume, Chairman of Unubiko Foundation and publisher of NewsNGR newspapers, was held at The Wells Carlton Hotel and Apartments in Asokoro, Abuja. It celebrated Dr. Agbai’s recent completion of a second PhD from Nasarawa State University, Keffi, focusing on “International Maritime Security and Nigeria’s Economic Coastal Areas.”
Agbai, who is the Vice President of the Center for Policy and Foreign Engagement, said in his remarks: “By right, the subsidy (payment) is supposed to be shared between the federal, state and local governments but today, NNPC is responsible for paying these subsidies and the consequence of that is the profit made by NNPC which should have been passed on to the government for the purpose of developmental projects has been taken away.
“Another shocking thing is that when these oil marketers get these subsidized PMS, instead of selling to Nigerians, they will export it to nearby African countries to sell at exorbitant prices just to double, triple or quadruple their profits. This is the height of greed and lack of patriotism. Based on what I found out about the industry, Nigeria has become a crime scene.”
The scholar shared statistics of how Nigeria lost 65.7 million barrels of crude oil due to the shutdown of the Trans-Niger pipeline, which is capable of producing 180,000 barrels per day.
“Nigeria lost 65, 700,000 barrels of crude oil, following the shutdown of the trans-Niger pipeline which produced 180,000 barrels of crude per day (bpd). Converting it into currency, it means Nigeria lost $5.4bn as a consequence please do the calculations as students of mathematics.
“Apart from the revenue losses and how they affect our GDP, investments and environmental oil spills and contamination, the huge security concerns, militancy, kidnapping and violence, Nigeria is facing a very tough time. In the course of this research, I came to appreciate the monumental challenges confronting the NNPC.
“I will share some of my findings. This is an intellectual exercise and I will share my findings relating to fuel subsidy and the NNPC. NNPC has been the entity paying for Nigeria’s subsidies. The price of crude oil is internationally fixed and it is same with refined products, the Premium Motor Spirit (PMS) popularly called petrol. when the products are imported, the landing cost will be such that it is too expensive for Nigerian
Chief Ume, in his remarks, acknowledged the efforts of the Federal Government and NNPCL in securing oil facilities through multi-stakeholder collaborations.
The publisher also expressed excitement at Dr Agbai’s latest achievement, noting that the research on effects of pipeline vandalism is a big addition to the discourse on Nigeria’s oil and gas sector.
“He (Dr. Agbai) did a very huge research work on the adverse effect of inadequate security to secure our maritime system.
“See what is happening in the Niger-Delta region where the Nigerian National Petroleum Company Ltd is doing a lot of work to ensure that we secure our oil facilities. The vandalism causes a lot of degradation of the environment, and losses in terms of economic numbers are so huge. I’m proud of him and what he has done. At his age, he still took out time to add yet another feather. He has a first PhD and still went for a second. It is a thing of passion,” he said.
Ume added, “I think the Federal Government is doing a lot because it is glaring what the effect is on our country. The FG, through the NNPCL, the relevant security agencies and Tantita Security, has secured multi-stake security collaborations. We now have the Army, Navy, Police and DSS trying to ensure we secure our maritime facilities. I also believe that the Nigerian Maritime Administration and Agency are also doing a lot.
“I believe with improvement, these facilities will be more harnessed and secured. Thanks to the efforts of the NNPC leading this chart. They have a system called command and control centre and are able to detect in real-time any intrusion on our maritime facilities.
The Director-General of the Nigerian Extractive Industries Transparency Initiative (NEITI), Dr. Orji Ogbonnaya Orji, while speaking to journalists at the event, also praised Dr. Agbai’s academic dedication, describing him as an intellectual force with global relevance
According to Orji, Dr Agbai’s study aligns with NEITI’s efforts to address the issue of oil theft and revenue losses in the Nigerian oil and gas sector.
“Tonight is about Dr. Agbai Eke. He is a multitasking human. It took me 12 years to get a Ph.D. in Political economy and International Development before then, Dr. Agbai had already coasted home with a PhD.
“He also acquired a degree in law from a university in London and masters from the University of Lagos, and all these he achieved before he was 40. He is an intellectual in a global context. The book he released has a nexus with what I do at NEITI.
“The last report we released [shows that] this country was losing $47.8bn [and] oil theft is at the centre of Dr. Agbai’s studies, so he has given me a job to go and study his work.
“At over 60, I think Dr Agbai has made a remarkable impact on different fields and this recent study will have a huge impact on the oil and gas industry which is the mainstay of the Nigerian economy and the foreign exchange earners for the government.”