Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, highlighted the advantages of deregulating Nigeria’s downstream oil sector, noting that, despite challenges, citizens are beginning to reap the benefits. He committed to collaborate with PETROAN to further improve value and support local refineries while clarifying misconceptions surrounding the naira-for-crude oil swap initiative. The structure of NNPC has been revamped to enhance its autonomy for better decision-making.
Senator Heineken Lokpobiri, Minister of State for Petroleum Resources, recently addressed the benefits of fully deregulating Nigeria’s downstream oil sector. During a visit from the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), he acknowledged that the decision taken by President Bola Tinubu’s administration, despite being challenging, has started to yield advantages for Nigerians. He emphasized that fuel retailers play a critical role, as most citizens procure fuel from them for energy generation.
Minister Lokpobiri expressed his commitment to collaborating with PETROAN to enhance value for Nigerians. He noted that the association not only serves the local market but also supplies customers in neighboring countries such as Chad, Niger, and Cameroon. He remarked that deregulation has stabilized fuel prices across the country and created new investment opportunities in the sector.
Looking ahead, Lokpobiri mentioned the prospects of incorporating Compressed Natural Gas (CNG) components at fuel stations due to the country’s transition towards gas as a supplementary fuel. His administration is keen to support the expansion of CNG distribution outlets in partnership with PETROAN.
Responding to concerns raised by PETROAN’s leadership, he clarified the situation regarding the naira-for-crude oil swap initiative. He confirmed that the scheme aimed at selling crude oil in Naira is not being cancelled but is undergoing revisions to enhance its effectiveness for Nigerians.
Lokpobiri discussed the restructuring of the Nigerian National Petroleum Company Limited (NNPC), which has been transformed into a more autonomous entity, mirroring international firms like Petrobras and Aramco. This new structure allows NNPC the independence to make strategic business decisions beneficial to Nigeria, albeit with government oversight.
PETROAN’s President, Dr. Billy Gillis-Harry, praised Lokpobiri’s achievements in the oil sector, highlighting increases in crude oil production and efforts against oil theft as significant advancements. He awarded Lokpobiri for his leadership, particularly in expediting the production and distribution of petroleum products.
Furthermore, Gillis-Harry advocated for PETROAN’s inclusion in the board of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. He stressed the importance of supporting local refining while allowing product imports to maintain a competitive and balanced market, ensuring fair domestic prices for consumers.
Senator Heineken Lokpobiri’s address underscores the positive outcomes of the deregulation of Nigeria’s downstream oil sector, emphasizing collaboration with fuel retailers and prospects for incorporating natural gas. His commitment to transparency and modernization of NNPC aims to enhance operational efficiency while ensuring benefits trickle down to citizens. The dialogue with PETROAN reveals an industry poised for growth, advocating for competition and local refining to provide affordable energy solutions.
Original Source: www.arise.tv
