The relevance, credibility and true purpose of the National Oil Company of Malawi are once again under intense scrutiny, with growing concerns that the institution may have drifted far from the mandate it was originally created to serve.
NOCMA Public Relations Officer, Raymond Likambale: No response
What was established in 2010 as a strategic fuel reserve agency meant to protect Malawi against fuel shortages is now increasingly being accused of morphing into a politically exposed fuel trading giant operating far beyond its intended role.
Critics are now asking uncomfortable but unavoidable questions: Why is a company created to safeguard strategic fuel reserves now controlling an estimated 60 percent of fuel imports?
Who benefits from this arrangement?
And if Malawi continues experiencing fuel shortages, forex pressure and rising fuel-related losses, is Nocma truly solving the problem — or becoming part of it?
Speaking during a press briefing in Blantyre yesterday, John Kapito launched a scathing attack on Nocma’s expanding dominance in fuel procurement, warning that the institution’s involvement in commercial fuel imports has distorted the entire market.
According to Kapito, Nocma’s original mandate was never to become one of the country’s biggest fuel importers.
“The arrangement that Nocma should bring about 60 percent of fuel is not good as it has led to the company becoming a big player in the fuel importation business in the country,” he said.
“This has distorted our pricing of fuel in the country.”
Kapito further alleged that some of the financial losses Malawi has suffered in fuel transactions are linked to Nocma’s growing involvement in direct fuel procurement.
More critically, he warned that the institution risks becoming a political tool instead of a professional reserve agency serving national interests.
“I would have loved it if Nocma had gone back to its mandate of being a reserve body of fuel in the country but, now, it has been allowed to be largely on the market, where it has ended up being abused by politicians,” he said.
The remarks cut to the heart of a long-running national debate over whether State institutions in Malawi are increasingly being turned into politically controlled commercial monopolies with limited accountability.
For many Malawians, the concerns are difficult to ignore.
Despite Nocma’s growing control of fuel imports, the country has repeatedly faced fuel scarcity, long filling station queues, forex shortages and rising transport costs that continue suffocating households and businesses.
This has triggered wider public questions over whether concentrating fuel procurement power in one State-linked institution has improved efficiency — or simply created another opaque system vulnerable to political interference.
Energy expert Grain Malunga acknowledged that the original concept behind Nocma was noble, arguing that the institution was intended to guarantee petroleum supply security for Malawi.
However, he warned that political influence appears to have weakened the institution’s integrity and operational independence.
“The initial intention of Nocma was not to be abused by politicians but, rather, to serve the country, in terms of providing security in the supply of petroleum products,” Malunga said.
“However, it is the character of those that are put in positions at Nocma that is questionable.”
His remarks point to a deeper governance concern: whether Malawi’s public institutions are failing because of flawed structures — or because political patronage continues infiltrating strategic State entities.
Malunga argued that if allowed to operate professionally and independently, Nocma could potentially benefit government through profits and efficient fuel management.
But critics say that is precisely the problem — the institution now appears trapped between acting as a public reserve agency and functioning as a politically influenced commercial trader.
Another energy commentator, Maxon Chitawo, defended the creation of Nocma, saying it was originally meant to cushion the country whenever private fuel companies failed to maintain adequate supply.
“Mostly, private companies come here for profits but Nocma came in to control the situation and ensure undisrupted fuel imports,” he said.
Still, even Chitawo acknowledged the growing fears surrounding Nocma’s expanding influence, suggesting Parliament may need to intervene and legally cap the amount of fuel the institution imports.
That proposal alone highlights how far the debate has escalated.
The controversy surrounding Nocma intensified further last year when Malawi entered a government-to-government fuel procurement arrangement that entrusted the institution with handling all diesel and petrol imports.
At the time, critics warned that concentrating such enormous procurement power in one institution could create fertile ground for abuse, weaken transparency and eliminate competitive safeguards.
Yet despite the mounting criticism, both government and Nocma itself have remained largely silent.
Nocma spokesperson Raymond Likambale had not responded to questions by press time, while Chief Secretary to Government Justin Saidi also did not comment.
Their silence is likely to deepen public suspicion at a time when citizens are demanding greater accountability over how billions of kwacha are being handled in fuel procurement deals.
At the centre of the storm now lies one defining question:
Is Nocma still functioning as Malawi’s strategic fuel security institution — or has it evolved into a powerful State-backed fuel trader operating in a system with too little oversight and too much political influence?
For a country battling chronic forex shortages, rising inflation and recurring fuel crises, the answer could have enormous consequences for Malawi’s economy and public trust.
