The House of Representatives has accused the Nigerian Petroleum Development Company, NPDC – the upstream arm of the Nigerian National Petroleum Corporation, NNPC – of ceding its core activities to third-party private entities without due procurement process.
This is part of the allegations of unethical and questionable actions in the company for which the NNPC subsidiary is now being investigated by the House.
The investigation is sequel to a unanimous adoption by the House of a motion by Rep. Ahmed Abu to that effect.
Earlier, Abu had said that NPDC currently owned and operated several oil and gas fields and infrastructure in the Niger Delta.
Apart from creating an additional source of revenue for the country, Abu said NPDC was established to also develop Nigeria’s local capacity in the industry for sustainable growth and profitability.
He, however, disclosed that allegations of unethical and questionable actions in the company appeared to be hindering the attainment of its objectives.
According to him, 29 years after the establishment of NPDC, it still appears to lack the capacity to compete favourably in the oil and gas industry.
“NPDC is reported to be consistently ceding its core activities to third-party private entities without due procurement process in Strategic Alliance Agreements that involve the provision of funds by those entities to carry out exploration,” the House member said.