- Northern Youth Groups has backed NNPCL chief Bayo Ojulari over the N7.13 trillion energy security expenditure in the company’s audited accounts
- The group argued that the Petroleum Industry Act gives NNPCL the legal basis to incur energy security costs on behalf of the federation
- NYG also weighed in on petrol subsidy removal, saying the reform freed up public funds for infrastructure and job creation
The Northern Youth Groups (NYG) has thrown its weight behind Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), commending his handling of the company’s finances and calling for the N7.13 trillion energy security expenditure to be judged against its proper legal context.
In a statement signed on Tuesday, August 11, by National President Alhaji Abubakar Ibrahim and National Secretary Comrade Abutu Ainoko, NYG said NNPCL’s published audited financial statements gave Nigerians and stakeholders a genuine opportunity to examine the figures and understand the obligations behind them.
Photo credit: @nnpclimited
Source: Twitter
What the Audit Report Covers
NYG said the Petroleum Industry Act (PIA) provides a clear framework allowing NNPCL to incur costs as an energy supplier of last resort, with the federation responsible for bearing those costs. The group pointed to the audit report’s explanation that part of the energy security expense arose from the gap between the exchange rate used to calculate the PMS ex-coastal price and the rate applied when import payments were actually settled.
“Every expenditure involving public resources must be open to scrutiny. However, such scrutiny must be based on the complete facts and the applicable legal framework. The audit report provides explanations on under-recovery, exchange-rate differentials and other costs incurred by NNPCL in the course of maintaining energy security,” the statement read.
Subsidy Removal and Revenue Gains
NYG also addressed the broader economic impact of President Bola Tinubu’s removal of the petrol subsidy, arguing that the reform had reduced the burden of financing petroleum consumption from public funds.
“The removal of the fuel subsidy has not been without hardship. However, it is equally important to acknowledge the economic opportunities created by the reform. Resources that were previously committed to subsidising petroleum consumption can now be channelled into critical infrastructure, job creation and other investments that can expand economic activity,” the group said.
NYG added that the long-term success of the reform would depend on how responsibly the government deployed the revenues and savings generated, urging that Nigerians should see visible benefits through improved roads, healthcare, education and energy infrastructure.
The group called on the federal government to keep the management of petroleum-sector revenues transparent and urged that NNPCL’s financial activities continue to face scrutiny through proper regulatory channels. It said legitimate questions about public spending must be answered with facts and documentation, not dismissed.
NYG said Ojulari and the NNPCL management team should be encouraged to maintain the culture of transparency while aligning the company’s operations with Nigeria’s wider economic and energy-security goals.
Good Governance Group Backs Eyesan, Ojulari
Earlier, Legit.ng reported that a civil society organisation, the Good Governance Index Group, praised the leadership of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the NNPCL, citing what it called measurable improvements in transparency and institutional discipline within Nigeria’s oil and gas sector.
Dr Olayemi Isaac, the group’s Executive Director, addressed journalists at a press conference in Abuja on Monday, August 10, where he said the NUPRC’s recent licensing round had demonstrated that petroleum assets could be allocated through a competitive, rules-based process.
Source: Legit.ng