The Northern Youth Groups (NYG) has publicly defended Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), over the N7.13 trillion energy security expenditure reported in the company's audited accounts. In a statement signed on Tuesday, August 11, by National President Alhaji Abubakar Ibrahim and National Secretary Comrade Abutu Ainoko, the group argued that the Petroleum Industry Act (PIA) provides the legal basis for NNPCL to incur such costs on behalf of the federation. The NYG also weighed in on the removal of the petrol subsidy, asserting that the reform has freed up public funds for infrastructure and job creation.
Legal Framework Under the Petroleum Industry Act
The NYG said the PIA establishes a clear framework allowing NNPCL to act as an energy supplier of last resort, with the federation bearing the associated costs. The group highlighted that the audit report explains 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. This differential, according to the report, contributed to the under-recovery and other costs incurred by NNPCL in maintaining energy security.
The statement read: "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."
Subsidy Removal and Economic Impact
Addressing the broader economic context, the NYG acknowledged the hardship caused by President Bola Tinubu's removal of the petrol subsidy but emphasised the opportunities it created. The group argued that resources previously committed to subsidising petroleum consumption can now be redirected to critical infrastructure, job creation, and other investments that expand economic activity. The NYG stated: "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."
The group stressed that the long-term success of the reform depends on how responsibly the government deploys the revenues and savings generated. It urged that Nigerians should see visible benefits through improved roads, healthcare, education, and energy infrastructure. The NYG called on the federal government to maintain transparency in the management of petroleum-sector revenues and to ensure that NNPCL's financial activities continue to face scrutiny through proper regulatory channels. It insisted that legitimate questions about public spending must be answered with facts and documentation, not dismissed.
Call for Continued Transparency and Support
The NYG encouraged Ojulari and the NNPCL management team to maintain a culture of transparency while aligning the company's operations with Nigeria's wider economic and energy-security goals. The group's support comes amid ongoing public debate over the N7.13 trillion expenditure, which was detailed in NNPCL's audited financial statements.
In a related development, the Good Governance Index Group, a civil society organisation, praised the leadership of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPCL, citing 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 demonstrated that petroleum assets could be allocated through a competitive, rules-based process.
