Petroleum industry expert Martin Onovo has suggested that the Nigerian National Petroleum Company Limited (NNPCL) continue borrowing money to keep its operations running. Onovo made these comments on Channels Television’s The Morning Brief on Monday, arguing that since the NNPCL has borrowed money before, there’s no harm in doing it again.
“If you’ve borrowed before, you can borrow again,” Onovo said bluntly. It’s a surprising stance for a company already neck-deep in debt. But according to Onovo, borrowing is just business as usual for the NNPCL.
This statement comes hot on the heels of the NNPCL’s recent admission of debt to petrol suppliers, which it blames for the fuel shortages currently affecting the nation. But Onovo isn’t buying it. To him, this debt acknowledgment is nothing more than the NNPCL admitting its own failures.
“It’s an admission of failure,” Onovo declared, adding that the company’s woes are deeply rooted in corruption and incompetence. He accused NNPC of incompetence saying, “Incompetence has a cost, and this is part of the cost. Corruption has a cost, and this is part of the cost.”
For Onovo, the solution is clear, if the NNPCL can’t manage its own finances, it might as well keep borrowing. After all, what’s a few more debts in a system already burdened with financial mismanagement and corruption?
As the NNPCL faces mounting criticism and its reputation takes yet another hit, one has to wonder, is borrowing really the answer, or just another step towards inevitable collapse?
