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The Crisis Of Confidence In The Petroleum Ministry And The Inherent Danger

CDHR is concerned that the altercation bordering on an allegation of insubordination and corruption between the Minister of State for Petroleum Resources, Ibe Kachikwu, and the Group Manager Director of the Nigerian National Petroleum Corporation, Maikanti Baru, is capable of eliciting administrative impasse with negative consequences for undermining corporate governance at the NNPC.

The Committee for the Defence of Human Rights (CDHR) considers the prevailing crisis of confidence at Nigeria’s petroleum industry as an ill wind that could plunge the country into a deeper cesspit of corruption if not checked with the potential of reinforcing the culture of impunity. CDHR is concerned that the altercation bordering on an allegation of insubordination and corruption between the Minister of State for Petroleum Resources, Ibe Kachikwu, and the Group Manager Director of the Nigerian National Petroleum Corporation, Maikanti Baru, is capable of eliciting administrative impasse with negative consequences for undermining corporate governance at the NNPC.

While allegations of insubordination and lack of due process by the minister of state for petroleum resources may not be grievous enough for investigation and possible administrative sanction if necessary, it is, however, regrettable that the president allowed serious issues that border on corporate governance to degenerate to such an appalling level of public opprobrium. The CDHR believes that the crisis was instigated by the refusal of President Muhammadu Buhari to appoint a substantive minister for the petroleum ministry. The creation of the position of minister of state without requisite power and authorization might have created room for the likelihood of insubordination as well as a circumvention of statutory requirements for due process in the management of the NNPC and its subsidiaries.

The CDHR is particularly worried that Dr. Maikanti Baru who was directly accused of wrongdoings by a minister supposedly in charge of the supervising ministry has not deemed it fit to issue a personal response to the allegation but instead directed the NNPC to issue a statement of clarification on the allegations. It is also rather curious that the said indirect response by the GMD was issued days after the presidency waded into the crisis. Nonetheless, the said response only appears to attest to the gravity of the crisis rather than disabuse the minds of Nigerians on the unhealthy development at the petroleum sector; particularly the NNPC. Indeed, the seriousness of the allegations by the Minister of State for Petroleum Resources and the dismissive manner of response by NNPC GMD clearly suggests the prevalence of crisis of confidence which may not engender the much needed corporate governance in the nation’s petroleum sector.

In the light of the recent event and considering the inherent threats pose to the much-needed transparency and probity in the oil sector, the CDHR demands that President Buhari relinquishes the position of Minister of Petroleum Resources forthwith and without further delay appoint a substantive minister to be saddled with the responsibility and authority of supervising the ministry in accordance with the Constitution of the Federal Republic of Nigeria and other relevant Laws of the Petroleum Sector. The CDHR also demand the reconstitution of the Board of the NNPC and other governance structures of agencies in the ministry of petroleum resources to reflect requirements of established law and statutes.

Finally, the CDHR calls on Nigerian Extractive Industry Transparency Initiative (NEITI) to conduct a thorough investigation into the crisis of confidence that pervades in the petroleum industry. CDHR is confident that such independent investigation is needed to correctly situate the true position of things for the benefit of the general public and more importantly, for proper documentation to prevent the reoccurrence of such crisis in the future.



Malachy Ugwummadu
President, CDHR

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