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Tag: Nigerian National Petroleum Company Limited (NNPCL)

  • Nigeria predicts $60b new investments in gas expansions

    Nigeria predicts $60b new investments in gas expansions

    The Nigerian National Petroleum Company Limited (NNPCL) has said the country is targeting $60 billion in new investments over the next five to seven years to expand gas infrastructure.

    Group Chief Executive Officer of NNPCL, Mr Bayo Ojulari, disclosed this while addressing a global audience from 150 countries at the opening of the Gastech Exhibition and Conference in Milan, Italy.

    He further stated that the Federal Government was seeking the investment to boost industrialisation and reinforce the country’s position in the global energy market.

    According to him, the planned investment was aimed at scaling up Nigeria’s natural gas production to 12 billion cubic feet per day and expanding the refinery capacity to meet growing global energy demand.

     “We are seeking at least 60 billion dollars in investment over the next five to seven years, which for our oil and gas industry is just the tip of the iceberg. We are seeking investors to grow production,” he said.

    Ojulari said the Petroleum Industry Act (PIA), signed into law in 2021, transformed NNPC into a limited liability company, enabling it to access direct funding and forge global partnerships.

    He said the company was currently producing about 1.6 million barrels of crude oil per day (bpd) with a mandate to grow output to 2 million bpd by 2027 and 3 million bpd by 2030.

    He highlighted the ongoing projects, including the Ajaokuta–Kaduna–Kano (AKK) pipeline, the extension of the West African Gas Pipeline to Morocco and Europe, as well as the expansion of the Nigeria LNG project.

    According to him, Nigeria already supplies 60 per cent of LNG to Portugal and Spain, and is currently on Train 6, constructing Train 7 to be completed in 2026, with plans for Trains 8 and 9.

     “Nigeria has one of the best-run LNG businesses globally. We want to take advantage of the current high energy demand, which is also expected to go even higher,” he said.

    On clean energy, Ojulari said government was driving LPG adoption and has launched a programme to deliver 2 million cylinders nationwide, while also rolling out a Compressed Natural Gas (CNG) transition scheme for vehicles and machinery.

    On Nigeria’s role in global energy security, he added that geopolitical shifts, such as the Russia-Ukraine-war, had accelerated regional pipeline projects to strengthen energy security.

    The NNPCL boss said Nigeria has over 200 undeveloped oil and gas fields, describing them as greenfield opportunities for international investors.

    On how foreign policy shifts affect Nigeria’s energy sector, Ojulari said the country had been hosting investments from diverse global players including ExxonMobil, Chevron, Shell, Agip and Total.

    Read Also: Tinubu orders further crash in food prices

     “Nigeria is a global market. While foreign policies do impact us, our focus is on creating a stable market and building the right partnerships,” he said.

    Also speaking, the Minister of State for Petroleum Resources (Gas), Mr Ekperikpe Ekpo, reaffirmed Nigeria’s commitment to leveraging its vast reserves to drive industrialisation, regional integration and global energy security.

    He said that natural gas remained central to Nigeria’s energy strategy, powering industries, clean cooking, agriculture, job creation and public health.

     “Nigeria as a gas nation is committed to using our natural gas to serve our economy, our continent, and other parts of the world,” he assured.

    Ekpo noted that the Nigeria Liquefied Natural Gas (NLNG) project was set to raise production capacity from 22 million metric tonnes per annum (MTPA) to 30 MTPA with Train 7.

    He said that the country was also pushing regional pipeline diplomacy through the Nigeria-Morocco Gas Pipeline, a 5,000-kilometre transcontinental project designed to connect West Africa to Europe.

    He said that the government was also engaging with Algeria and Equatorial Guinea on the Trans-Saharan Gas Pipeline to expand regional energy interconnectivity.

    With an estimated 210 trillion cubic feet of gas reserves, the minister said Nigeria was open to investors and had introduced regulatory reforms and executive orders under President Bola Tinubu to create an investor-friendly environment.

     “Our natural gas is the bridge to renewables, and the anchor point for developing countries like Nigeria to ensure we are not left behind in the global energy transition,” he concluded.

    Nigeria’s participation at the global summit underscores its ambition to become a key player in the evolving energy landscape.

  • Nigerians urged to support oil sector reforms

    Nigerians urged to support oil sector reforms

    Nigerians have been tasked to support ongoing reforms in the oil and gas sector under the leadership of the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mele Kyari.

    The call was made by Mohammed Abdullahi of the Coalition of Civil Society Organisations Against Corruption (COCSOAC); Oluwatoyin Animashaun of Nigeria Professionals in Diaspora and Kenneth Emea of Bloggers and content creators association of Nigeria at a joint news conference on Wednesday in Abuja.

    The coalition said that recent attacks against Kyari were attempts to “derail the critical progress that has been achieved under his leadership.”

    While expressing firm support for Kyari, the coalition urged President Bola Tinubu not to yield to these “unfounded demands for his sack.”

    Read Also: Nigeria needs $10b annually to achieve SDG 2030 – UN

    Animashaun, who read the text of the press conference said: “Since his appointment as GCEO of NNPCL, Mele Kyari has been a transformative force in the Nigerian oil and gas sector, a sector that has long suffered from inefficiencies, corruption, and lack of accountability. Under his watch, there has been a profound shift toward transparency, professionalism, and operational efficiency. His stewardship has saved billions of naira, ensuring that NNPCL can finally act as a reliable and accountable player in the global oil industry while driving national economic growth. Kyari has demonstrated unparalleled commitment to cleaning up the sector, implementing key reforms that have restored investor confidence and positioned Nigeria on the path to energy self-sufficiency.

    “One of the landmark achievements under Mele Kyari’s leadership has been the successful transition of NNPC into a limited liability company (NNPCL), operating with greater transparency and subject to industry best practices. This restructuring was crucial for creating a financially viable, market-driven entity that can compete with global oil giants. This historic shift is the result of visionary leadership and dedication to reform—a testament to Kyari’s resolve in transforming NNPCL from a government entity into a commercially viable and profit-driven corporation.

  • Petrol: Addressing supply shortfalls and pricing realities

    Petrol: Addressing supply shortfalls and pricing realities

    Sir: The recent controversy surrounding the Nigerian National Petroleum Company Limited (NNPCL) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) has sparked widespread debate. IPMAN’s accusations against NNPCL’s pricing strategies have raised significant questions about the national oil company’s role in the pricing and distribution of petroleum products. While these claims have stirred public discourse, a closer examination reveals a more intricate reality that underscores the need for collaborative solutions rather than misplaced blame.

    At the heart of the debate is IPMAN’s assertion that NNPCL purchases fuel from the Dangote Refinery at below N900 per litre, only to sell it to independent marketers at inflated prices. However, this simplistic view overlooks critical supply chain challenges and the operational constraints facing both the NNPCL and the Dangote Refinery.

    NNPCL’s contract with the Dangote Refinery stipulates a daily fuel supply of 25 million litres. Unfortunately, actual deliveries fall far short of this target, with an average supply of only seven million litres per day—a mere 27% of the expected volume. This shortfall has led to fuel scarcity and the re-emergence of long queues at petrol stations. The planned Premium Motor Spirit (PMS) supply from the Dangote Refinery for the period from September 15 to October 6 was intended to be 540 million litres, yet NNPC Limited received just over 100 million litres.

    Read Also: Understanding Tinubu’s tax bills of reliefs for Nigerians, businesses

    The inconsistency in supply from the Dangote Refinery presents a significant bottleneck in Nigeria’s fuel distribution chain. While NNPCL is responsible for managing its relationship with Dangote, it is clear that the root of the problem lies in the suboptimal performance of the refinery, which has failed to meet its contractual obligations.

    Nigeria’s downstream petroleum sector is now fully deregulated, allowing independent marketers the freedom to import petrol directly or purchase from the Dangote Refinery at negotiated prices. This shift promotes healthy competition, which has the potential to drive down prices and provide consumers with more stable access to fuel. IPMAN’s president, Abubakar Garima, has acknowledged that marketers now have the option to source products directly from the Dangote Refinery without needing to go through NNPC Limited.

    In this new deregulated landscape, it becomes clear that NNPCL’s role has evolved. It no longer holds a monopoly on fuel supply, and independent marketers now have greater control over pricing and procurement. Rather than view NNPCL as the culprit, stakeholders should focus on addressing the inefficiencies within the Dangote Refinery and supporting the government’s efforts to improve local refining capacity.

    While NNPC Limited’s pricing approach may draw criticism, it is important to recognize the challenges the company faces in maintaining a steady supply of fuel in an environment fraught with logistical hurdles and global market volatility.

    To truly fuel Nigeria’s economic growth, the focus must shift from blame to collaboration. The inefficiencies at the Dangote Refinery are a key factor in the current supply challenges, and government intervention is necessary to ensure optimal production and distribution. By enhancing the refinery’s efficiency and increasing its output, Nigeria can reduce its dependence on imported fuel and stabilise local supply.

    Moreover, promoting competition by encouraging more independent marketers to enter the market will drive prices down and improve consumer access to affordable fuel. Investment in infrastructure, such as storage and transportation networks, is also crucial to address the logistical challenges that hamper the efficient distribution of petroleum products across the country.

    Finally, fostering open dialogue between NNPCL, IPMAN, and other key stakeholders is essential. Through cooperation, these entities can work together to find sustainable solutions to the challenges facing Nigeria’s fuel sector. Rather than engaging in finger-pointing, the focus should be on building a more resilient, competitive, and transparent market that benefits all Nigerians.

    •Femi Oniyide, Lagos

  • Presidency affirms Lokpobiri’s stance on petrol price feud

    Presidency affirms Lokpobiri’s stance on petrol price feud

    The Presidency has explained why government agencies cannot engage in the ongoing price dispute between Nigerian National Petroleum Company Limited (NNPCL) and Dangote Refinery, citing the fact that both enterprises are private.

    The Special Adviser to the President on Information and Strategy, Bayo Onanuga, gave this clarification while briefing journalists. 

    Minister for Petroleum Resources (Oil), Senator Heineken Lokpobiri had stated that the price of petrol in the country could differ in various locations, but by the time there is availability of products across the country, the price itself will stabilised.

    The Minister further stated that the sector is deregulated and therefore the government is not responsible for fixing prices.

    According to Lokpobiri: “What is important is that the government is not fixing prices. This sector is deregulated. And we believe that with the availability of products, the price will find its level. And this is important for Nigerians to know.”

    Read Also: Fed govt won’t interfere in NNPC, Dangote petrol price war – Presidency

    “There is enough product in the country to be able to meet the demands of Nigerians, there should be no panic buying. And we also believe that Nigerians need to know that the government is not fixing prices. That is what I want to convey to Nigerians.”

    While briefing State House correspondents, Onanuga also emphasised on what the Minister for Petroleum resources said that both entities operate independently in a deregulated market. 

    He said under the Petroleum Industry Act, PIA, NNPCL functions autonomously despite government ownership.

    According to him: “The PMS (Premium Motor Spirit) field, the PMS regime, has been deregulated. Dangote is a private company. NNPCL should not forget it’s a limited liability company. 

    “Whatever controversy both of them are having is their own problem. They are operating, even if you go by the terms of petroleum industry act NNPCL is on its own, even though it’s owned by the federal government, the state government and local councils and everything, but it’s operating as a limited liability company. 

    “You can see what the private market has said that I think they find the NNPC or Dangote price too much for them. They will resolve to importing fuel because they clear market at the end of the day. 

    “It’s the consumer who benefits if a price war starts, if NNPC fuel is too much, the public market can go to the market and bring in their own fuel and sell at the price that they think is very reasonable and profitable for them. 

    “So my answer is that, as far as this is concerned, government is not dabbling into this controversy. Dangote as a private company is working on his own. NNPC is a limited liability company, and it has the right to fix the price of it’s own and so on.”

    Onanuga said instead of intervening, the government plans to promote alternative energy solutions like Compressed Natural Gas (CNG) offering a cheaper option for consumers and subsidizing conversion costs for vehicles.

    He noted that the price difference is significant, with CNG costing about N230 per liter compared to PMS at around N855 per liter.