Senator Heineken Lokpobiri confirmed that the full deregulation of Nigeria’s downstream oil sector under President Bola Tinubu is starting to yield benefits for citizens. He highlighted collaboration with petrol retailers, expressed readiness to integrate CNG into fuel stations, and reassured that the naira-for-crude swap initiative remains in place. Lokpobiri also emphasized the autonomy of the NNPC to boost industry potential, while stressing the importance of local refining and diverse supply sources.
Senator Heineken Lokpobiri, Minister of State for Petroleum Resources, affirmed that the full deregulation of Nigeria’s downstream oil sector under President Bola Tinubu is yielding benefits for citizens. This acknowledgement came during a visit from the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) to his Abuja office. Lokpobiri emphasized that despite the challenges involved in this decision, its implementation has started to enhance fuel availability and pricing stability.
He clarified that the advantages for Nigerians, an oil-producing nation, rely heavily on petrol retailers, as 90% of Nigerians purchase fuel through these outlets for energy generation. The minister expressed his readiness to collaborate with PETROAN to improve value delivery and noted that the organization services customers in neighboring countries such as Chad, Niger Republic, and Cameroon.
Lokpobiri remarked on the initial difficulties regarding the deregulation and how it resulted in price discrepancies across regions. Now, he observes that prices are aligning more consistently, creating new investment opportunities in the oil sector. He looks forward to the integration of Compressed Natural Gas (CNG) in fuel stations as Nigeria transitions to gas as a primary energy source.
Additionally, Lokpobiri addressed concerns regarding the naira-for-crude oil swap initiative. He assured that the government is not canceling this pilot scheme, which is designed for the sale of crude oil in Naira to specific refineries, including the Dangote refinery. The minister encouraged negotiations to continue between private sector participants regarding crude pricing.
The Nigerian National Petroleum Company Limited (NNPC) has been aimed at operating similarly to global oil giants like Petrobras and Aramco. This is facilitated by the Petroleum Industry Act (PIA), which promotes greater autonomy for NNPC in its business decisions, intending to minimize government interference while maximizing opportunities for the industry.
During the meeting, PETROAN President Dr. Billy Gillis-Harry acknowledged Lokpobiri’s leadership in achieving notable improvements in oil production, addressing crude oil theft, and attracting investments. He also presented the minister with an award for facilitating increased petroleum production and reducing bureaucratic hindrances in licensing processes. However, he called for PETROAN representation on the board of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Gillis-Harry stressed the importance of local refining and advocated for diverse sources of petroleum product supply to sustain competition and ensure the availability of affordable products. He emphasized that fostering both local refining and imports would support a competitive market that benefits consumers by keeping domestic prices in line with international levels.
The recent declaration by Senator Heineken Lokpobiri on the benefits of petroleum deregulation highlights significant advancements in Nigeria’s oil sector. Through partnerships with retailers and strategic enhancements like the introduction of CNG, the government seeks to create a more competitive and efficient market. Ensuring effective negotiation practices and fostering local refining capabilities are pivotal in establishing price fairness and availability of resources in the country.
Original Source: www.arise.tv
