NNPC Limited has reduced the pump price of petrol at its retail outlets in Abuja to N965 per litre from N1,030 per litre.
This marks the second price cut by the Nigerian National Petroleum Company within two weeks, following a reduction from N1,060 to N1,030 per litre.
The Nation observed that NNPC implemented the new price across its retail outlets in the capital city, much to the delight of customers.
Details shortly…
In a year marked by economic challenges and global uncertainties, Nigerian National Petroleum Company Limited (NNPCL), under the leadership of its Group Chief Executive Officer, Mele Kyari, has emerged as a beacon of hope and resilience for Nigeria, Assistant Editor, Muyiwa Lucas, reports
With a volatile global oil market in 2024 tied to geopolitical tensions and other local challenges such as oil theft and pipeline vandalism amid the pressure to up oil production levels, the Nigerian National Petroleum Company Limited (NNPCL), has effectively navigated the challenges with many milestone achievements to show. From the revitalisation of the 60,000-barrel-per-day, Port Harcourt Refinery, which had been moribund for over 30 years to the N3.3 trillion profit for the 2023 financial year, the highest in its 46-year history, NNPCL have achieved many groundbreaking milestones, initiatives and innovative solutions in recent period.
Many analysts attributed the revamp of the NNPCL to the dedicated leadership of its Group Managing Director, Mr. Mele Kyari, who they said, has redefined Nigeria’s oil and gas sector trajectory. Kyari steered the oil company through troubled waters, navigating against the tide without succumbing to the storm. Of course, the revival of the old Port Harcourt Refinery, after over three decades of dormancy, is a perfect example of the can-do spirit of the NNPCL under Kyari.
Revitalising Port Harcourt Refining Company (PHRC)
For decades, efforts to revive the Port Harcourt Refining Company (PHRC) seemed unattainable, but under Kyari’s leadership, this long-elusive goal has been realised. The reopening of the 60,000-barrel-per-day-old refinery marks a pivotal moment in Nigeria’s journey toward energy self-sufficiency and showcases Kyari’s determination to reshape the country’s energy landscape. Dormant for over 30 years, the old Port Harcourt refinery, built in 1965, is now back in operation, producing 1.4 million liters of PMS, 900,000 liters of kerosene, 1.5 million liters of diesel, and other critical products daily.
This revival follows the Federal Government’s $1.5 billion investment in 2021, which NNPCL effectively managed to deliver the long-overdue turnaround. Skepticism surrounding this achievement has been silenced by testimonies from labour unions, refinery workers, and industry experts, all lauding the refinery’s smooth operations. Meanwhile, the repair of the new 150,000-barrel-per-day refinery is over 90 per cent complete, promising a combined refining capacity of 210,000 barrels per day upon completion. NNPCL’s Group Executive Vice President, Downstream, Isiyaku Abdullahi, highlighted the facility’s state-of-the-art upgrades, ensuring the rehabilitation aligned with global standards. This milestone sets the stage for not only domestic self-sufficiency but also the export of refined petroleum products, boosting Nigeria’s economy and energy sector.
Championing alternative energy sources
Kyari’s foresight in promoting Compressed Natural Gas (CNG) as an alternative energy source has provided Nigerians with a cleaner, more cost-effective option amid soaring global energy prices. This initiative aligns with global energy transition trends while addressing local energy demands, offering immediate relief to citizens and businesses alike.
The NNPC under Kyari has perfected plans to deliver 12 CNG Mother Stations and Mini LNG Plants as part of efforts to boost the existing 1.6bscf of gas supply for the domestic market.
NNPCL’s Chief Corporate Communications Officer, Olufemi Soneye, had on July 4, 2024, quoted Kyari as declaring that the drive to bring CNG closer to Nigerians had since commenced and was irreversible.
Speaking during the simultaneous commissioning of 12 CNG stations in Abuja and Lagos, Kyari promised massive deployment of CNG stations nationwide.
“There is simply no way to turn back on delivering CNG for all Nigerians. It is the right thing to do. Is it late? Yes, but we will make progress, we will cover the gap to ensure that the volatility we see with Premium Motor Spirit (petrol) does not apply to gas,” Kyari stated.
President Bola Tinubu had mandated that one million CNG vehicles should hit Nigerian roads by 2027 and in furtherance to that, the Federal Government, through the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), recently announced plans to convert 100,000 vehicles to CNG within the next 18 months.
SMEDAN said the initiative, which is in collaboration with the Presidential Committee on the Compressed Natural Gas Initiative and Rolling Energy, was focused on reducing costs for small and medium enterprises while supporting Nigeria’s transition to cleaner energy.
The NNPCL boss commended President Tinubu for providing the needed support to drive domestic gas utilisation aimed at delivering cleaner and cheaper sources of energy to Nigerians.
While assuring that the NNPC Ltd. would continue to deliver more strategic gas projects for the benefit of Nigerians, Kyari reaffirmed the determination of the government-owned company to guarantee the nation’s energy security.
The Managing Director, NNPC Retail Limited, Mr Huub Stokman, revealed that in the next one year, NNPC Retail would have launched over 100 CNG sites, including 16 NNPC Gas Marketing and NIPCO Gas JV sites.
“CNG provides Nigeria with affordable alternatives to existing available fuel products. It will be about 40 per cent cheaper than petrol in Nigeria and with continued investments, it will become a significant part of our energy mix,” Stokman added.
Already, NNPC Gas Marketing Limited, a subsidiary of NNPC Limited, in partnership with NIPCO Gas Limited has developed an Auto-CNG rollout plan for the construction of 35 CNG stations across the various geographical zones of Nigeria.
The Chairman of the NNPC Board of Directors, Chief Pius Akinyelure and the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, backed Kyari’s CNG investments, expressing optimism that CNG adoption would foster economic benefits, create jobs, stimulate local economies, help reduce emissions, and combat climate change.
Also, as part of its efforts to accelerate CNG adoption, NNPC Retail Limited (NRL), a subsidiary of NNPC Ltd, recently sensitised over 1,000 auto mechanics through a comprehensive awareness initiative. The sensitisation exercise demystified the process of converting gasoline-powered vehicles to CNG and encouraged the adoption of sustainable energy solutions.
“We believe that sensitising mechanics on the importance of CNG adoption is critical to achieving Nigeria’s long-term energy goals. While this engagement focused on raising awareness, we urge artisans to actively pursue the skills required to contribute to this transformative shift toward cleaner and more affordable fuel options.
This initiative represents a crucial step in advancing the nation’s transition to a cleaner, more sustainable energy future,” Baba Shettima Kukawa, Executive Director of Retail Operations & Mobility at NRL, said.
Supporting private sector growth
Kyari also played a pivotal role in supporting the Dangote Refinery, Africa’s largest single-train refinery, by securing a $1 billion loan backed by NNPC’s crude reserves.
This strategic move not only addressed liquidity challenges but also ensured the successful completion of Nigeria’s first private refinery. It underscores Kyari’s commitment to fostering public-private partnerships that deliver long-term value to the nation.
The NNPCL boss considers the investment in the Dangote Refinery as a strategic move aimed at strengthening domestic fuel supply.
“A strategic decision to secure a $1 billion loan backed by NNPC’s crude was instrumental in supporting the 650,000-barrel-per-day Dangote Refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery. This initiative underscores NNPC’s dedication to fostering public-private partnerships that drive national development,” Soneye, the NNPC spokesman, said at an Energy Relations Stakeholders Engagement in Abuja.
Recall that in September 2021, the NNPCL proposed to acquire a 20 percent stake in the Dangote Refinery for $2.76 billion, with an initial payment of $1 billion made to the Dangote Petroleum Refinery and Petrochemicals Free Zone Enterprise (DPRP FZE). However, due to restructuring and financial challenges, NNPCL’s stake was later reduced to 7.25 per cent as of December 2023.
Defending the decision to cap the Dangote Refinery investment to 7.2 per cent, the NNPC spokesperson who featured on Berekete Family Radio, said the state-owned energy firm reduced its stake in Dangote Refinery to invest in CNG.
“The reason for reducing our stake in Dangote Refinery is because we wanted to invest in CNG. We observed that CNG is very cheap and all over the world, people are investing in clean and cheaper alternative energy, “ he explained.
“That is why the NNPC is building different CNG stations everywhere. We understand that with N10,000, Nigerians can fill their cars and use it for two weeks. We realised that gas is cheaper in Nigeria, why don’t we invest in it?”
To further ensure the operational success of the Dangote Refinery while enhancing the nation’s domestic gas utilisation, the NNPC Gas Marketing Limited (NGML), a subsidiary of the Nigerian National Petroleum Company (NNPC) Limited, has recently inked a Gas Sale and Purchase Agreement (GSPA) with Dangote Petroleum Refinery and Petrochemicals FZE.
Under the terms of the agreement, signed by the Managing Director, NGML, Mr Justin Ezeala and the President/CEO of the Dangote Group, Aliko Dangote, NGML will supply 100 million standard cubic feet per day (MMSCF/D), 50MMSCF/D being firm supply and the rest 50MMSCF/D interruptible natural gas supply to the refinery for an initial period of 10 years, with options for renewal and growth.
This, among other instances, cemented NNPCL’s position as a strong pillar of support for its private sector partners.
Achieving historic profitability
For the first time in decades, NNPC declared a profit under Kyari’s stewardship—a groundbreaking achievement in the company’s history. Furthermore, NNPC has already surpassed its profit projections for 2024, reflecting the impact of robust financial and operational reforms spearheaded by Kyari.
In 2021, NNPC declared profit in its operations for the first time. From a loss position of N803 billion in 2018, it reduced the loss further down to N1.7 billion in 2019.
However, in 2020, it posted its ‘first-ever’ profit of N287 billion, then in 2021, it recorded an N674.1 billion profit and in 2022, the profit grew to N2.548, an unprecedented achievement in its financial performance.
In a company where profitability was like an anathema, Kyari has bucked the trend and changed the narrative by posting profit year-on-year.
In August 2024 when the NNPCL released its 2023 Audited Financial Statement, it declared a net profit of N3.297 trillion at the close of the financial year which ended in December 2023, an increase of over N700 billion or 28 per cent when compared to the 2022 profit of N2.548 trillion.
The N3.297 trillion profit declared for 2023 is the highest since the company’s inception, 46 years ago. This, according to experts, is a huge testament to Kyari’s purposeful leadership and sound management capacity.
The Chief Financial Officer of the Company, Mr. Umar Ajiya, remarked that posting such impressive returns demonstrated NNPC Ltd’s commitment to sustaining profitability and supporting the attainment of national energy security as stipulated by the Petroleum Industry Act (PIA) 2021, and by extension, as expected by the company’s shareholders.
“Our fiscal performance reflects both strategic foresight and operational resilience. Despite inherent challenges of our operational and economic environment, we have improved the productivity and the financial performance of this great company,” Ajiya stated.
Stabilising economy amid crises
Amid a critical foreign exchange crisis, Kyari secured a $3 billion Gazelle loan to stabilise the nation’s finances and bolster the energy sector, aiding efforts to navigate complex economic challenges.
In December 2023, the NNPC secured a $3b forward sale agreement, pledging 90,000bpd from Production Sharing Contract assets to cover future tax and royalty obligations.
The $3 billion crude oil repayment loan from AFREXIMBank is to help the Federal Government attend to some of its dollar obligations, assist the Central Bank of Nigeria in stabilising the foreign exchange market, and provide funding for NNPC.
As of the end of 2023, $2.25 billion had been drawn from this facility, with repayments scheduled to begin by mid-2024.
This intervention highlights NNPC’s strategic importance as a stabilising force in Nigeria’s economy.
Providing details about the deal in the document titled, “Everything you need to know about the NNPC Limited’s $3.3b loan, also known as Project Gazelle,” NNPC said, “This is a financing agreement secured by NNPC Limited to prepay future royalties and taxes to the Federal Government.”
The company also stated that it adopted a lower price benchmark for the $3.3b crude-for-cash loan to reduce the risk of default and ensure financial stability.
Giving details on the benchmark oil price, the company said the facility used a conservative crude price of $65/barrel to calculate the allocated crude to be produced and sold.
NNPC also said repayments were strategically planned and tied to future oil sales, with conservative pricing in oil sales contracts mitigating the risks associated with oil price volatility.
Accelerating gas pipeline projects to power Nigeria’s energy future
The NNPCL has also made significant strides in consolidated efforts aimed at delivering critical gas pipeline infrastructure across the country to enhance gas supply and drive economic growth. At the forefront is the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project, a 614-kilometer pipeline capable of transporting 2.2 billion cubic feet of gas daily. As of December 2024, the project is reported to be approximately 80 per cent completed, with significant sections already laid and connected, promising to link southern gas reserves to the industrial hubs of northern Nigeria. However, the NNPCL is now projecting that the project will be finalised by the first quarter of 2025.
At completion, this project is expected to support the establishment of three new gas-fired power plants in Abuja, Kaduna, and Kano, which are expected to generate a total of 3,600 megawatts (MW) of electricity. It is expected to provide a reliable source of natural gas, facilitating industrialisation in central and northern Nigeria.
Another milestone is the near completion of the Obiafu-Obrikom-Oben (OB3) pipeline, a key component of Nigeria’s gas network. The OB3 pipeline will play a vital role in improving gas supply to power plants and industries, addressing long-standing challenges in Nigeria’s energy sector. NNPCL’s progress on this project underscores its commitment to closing infrastructure gaps and ensuring a seamless flow of natural gas to critical areas of need.
On the international front, NNPCL has also ramped up collaboration on the Trans-Saharan Gas Pipeline (TSGP), a transnational project designed to export Nigerian gas to Europe via Niger and Algeria. With feasibility studies concluded and bilateral agreements advanced, the project is closer than ever to becoming a reality. This initiative not only aims to diversify Nigeria’s gas export markets but also positions the country as a key player in addressing Europe’s energy needs.
Domestically, NNPCL has championed the expansion of gas infrastructure to support power generation, industrialisation, and clean energy adoption. Through its “Decade of Gas” agenda, the company has invested heavily in developing local markets and enabling industries to leverage natural gas. These efforts have bolstered Nigeria’s energy security and laid the foundation for economic resilience, cementing NNPCL’s role as a transformative force in the nation’s energy sector.
Beyond oil: NNPCL’s groundbreaking electricity projects
Apart from its efforts within the oil and gas space, NNPCL is also extending efforts to deliver on complex power initiatives. With significant progress in both the GIPP and MEPP, NNPCL is not only bridging energy gaps. With a $1 billion equity contribution to the GIPP project, NNPCL is demonstrating its commitment to enhancing the nation’s energy capacity. Developed in partnership with China Engineering & Machinery Corporation (CMEC), the 1,350 MW GIPP consists of three power train blocks of 450 MW each. The project’s groundbreaking ceremony in August 2023 marked the start of a transformative endeavour, with the first phase nearing completion by December 2024. The GIPP is a centrepiece of NNPCL’s broader strategy to boost power generation and reduce Nigeria’s reliance on erratic electricity supply.
The project highlights a synergistic partnership between NNPCL and global energy leaders, with CMEC handling Engineering, Procurement, and Construction (EPC). Once fully operational, the plant will provide a sustainable solution to Nigeria’s energy demands, supporting industries and households alike while catalysing economic growth. Complementing the GIPP, NNPCL has also delivered the 50 MW Maiduguri Emergency Power Project (MEPP), a vital lifeline for the conflict-affected region. Commissioned on March 2, 2023, the project’s 32 MW Simple Cycle phase is already operational, restoring electricity to thousands of residents and businesses. The remaining 18 MW Combined Cycle phase is on track for completion in 2025, further enhancing the project’s efficiency and capacity. The Honourable Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, commended NNPCL’s efforts during a recent inspection, lauding the organisation’s swift execution of President Tinubu’s vision for energy security.
A legacy of transformation
Kyari’s tenure as Group CEO of NNPC Limited has been marked by transformative achievements that extend beyond the oil and gas sector. His leadership has fortified NNPC’s role as a cornerstone of Nigeria’s economic and energy stability while setting the company on a trajectory of sustainable growth.
As Nigeria navigates a turbulent year, the achievements of NNPC Limited under Mele Kyari stand as a testament to the power of visionary leadership and the potential for positive change. Indeed, NNPC Limited is a gift to Nigeria—one that continues to deliver value, stability, and hope for a brighter future.
The Nigerian National Petroleum Company Limited (NNPCL) has reduced the ex-depot price of Premium Motor Spirit (PMS) to N899 per litre in what industry watchers yesterday saw as a direct response to Dangote Refinery’s price of N899.50k.
Ex-depot price is the amount marketers pay for the product at the depots.
The NNPCL new price is down from the former N1020 and it comes on the heels of the holiday discount announced by Dangote earlier in the week.
Dangote Refinery ‘s pre-holiday discount price was N970.
However, retailers will sell Dangote petrol for N935 per litre from tomorrow.
The Dangote Group said yesterday that it had reached an agreement with MRS,a petrol marketing firm, to sell the product at N935 per litre nationwide.
“To ensure that the price reduction gets to the end consumer, we have signed a partnership with MRS to sell petrol from its retail outlets nationwide at N935 per litre,” the group said on its official X account.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN ) confirmed the slash in the NNPCL fuel price slash.
“The Nigerian National Petroleum Company Limited has taken a significant step in response to the competitive impact of deregulation in the downstream sector,” PETROAN’s National Public Relations Officer, Dr. Joseph Obele said.
He added: “The company recently reduced the ex-depot price of Premium Motor Spirit from N1,020 to N899 per litre.
“The price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector.”
Dangote Group had said its own price reduction was aimed at easing transport costs during the Christmas season.
It said:“In addition to the holiday discount, Dangote Petroleum Refinery is allowing consumers to purchase an additional litre of fuel on credit for every litre bought on a cash basis.”
“To alleviate transport costs during this holiday season, Dangote Refinery is offering a holiday discount on PMS. From today, our petrol will be available at N899.50 per litre at our truck loading gantry or SPM. Furthermore, for every litre purchased on a cash basis, consumers will have the opportunity to buy another litre on credit, backed by a bank guarantee from Access Bank, First Bank, or Zenith Bank.”
In an update yesterday ,the group said it had partnered with MRS to sell PMS at N935 per litre nationwide.
It said: “This price has already commenced in Lagos, and it will be offered nationwide from Monday.”
President of the Dangote Industries Limited, Aliko Dangote, acknowledged that the Naira for crude swap deal effected by the Tinubu administration was hugely responsible for the reduction in prices of petroleum products in the country.
He commended President Bola Tinubu for the positive impact of the crude swap deal on the Nigerian economy generally.
Dangote ,in a statement, asked other oil marketers such as the NNPC Retail and all other marketers, “to work with us to ensure that Nigerians enjoy high-quality petrol at discounted prices.”
He said: “The Dangote Refinery is for the benefit of Nigeria and Nigerians. We will therefore continue to work with various value chain players to deliver high quality petrol at cheaper prices. Our aim is for all Nigerians to have ready access to high quality petroleum products that are good for their vehicles, good for their health, and good for their pockets.”
He thanked Nigerians for their unwavering support and the government for creating an enabling environment for the domestic refining industry.
The Federal Executive Council (FEC) had in September approved the sale of crude to local refineries in Naira and corresponding purchase of petroleum products in Naira.
The policy took off on October 1.
Also yesterday, the NNPCL dismissed as untrue a media report that the Port Harcourt Refinery Company (PHRC) had been shut down.
The company said the refinery is fully operational.
Chief Corporate Communications Officer of NNPCL , Olufemi Soneye described the report as totally false.
“Such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC,” Soneye said.
He added: “Preparation for the day’s loading operation is currently ongoing. “Members of the public are advised to discountenance such reports as they are the figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
The rehabilitation and modernization of Port Harcourt refinery by the Nigerian National Petroleum Company Limited under the guidance of the Group Chief Executive Officer, Mele Kyari has changed the narrative of a country where nothing works and delivered a huge political capital to President Bola Ahmed Tinubu, pilloried by critics of his administration at home and abroad for the rot he inherited from his predecessors.
For the feat achieved by NNPC in getting the Port Harcourt refinery working again after over two decades of inactivity, it is imperative to delve briefly into the history of the condition of the four state owned refineries before Kyari at the helm in NNPCL waved the axiomatic magic wand to turn the situation around.
Constructed back in the 60s and 80s, the 210,000 barrels per day Port Harcourt, the 125,000 barrels per day Warri, and the 110,000 barrels per day Kaduna refineries had a combined capacity of 450,000 bpd. These plants faced several technical issues, which resulted in almost zero operational refining capacity.
Against the backdrop of several failed Turn Around Maintenance after gulping billions of resources, it was understandable that Kyari was confronted by a cynical public when he pledged to rehabilitate the refineries immediately he mounted the saddle at NNPC.
The task was by no means an easy one; the delivery on his pledge with the return to operations of the Port Harcourt refinery is indeed a significant achievement by the NNPC and the Tinubu administration While this feat gives room for optimism and hope about the fate of Warri and Kaduna refineries, it also launched Nigeria on the irreversible path to energy security.
This success may seem incremental to some but if you are privileged to see the big picture through the lens of Mele Kyari, the intrepid visioner driving the reforms at NNPC, you will be confronted with a robust plan to deliver the much vaunted energy security to the country.
When he mounted the saddle at NNPC nearly five years ago, Kyari pledged the commitment of NNPC to resolve Nigeria’s energy crisis by ensuring energy security, sustainable growth, and energy affordability The gas footprint of NNPC in the past five years is an indication of the recognition of the importance of the critical role the country’s vast natural gas reserves could play in the quest to achieve energy security.
Under his guidance, NNPC continues to spearhead the drive to increase domestic gas utilization, the diversification of the energy mix, and the gradual reduction of its carbon footprint.
The focus of NNPC on the expansion of its Domestic Gas Footprints is driven by the determination to support the nation’s gas-to-power aspirations and utilize the huge gas resources to trigger the nation’s industrialization and economic development.
In order to realize this objective, NNPC invested more than $1bn from its cash flow in the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project. On completion, the 614-kilometer pipeline project will transport natural gas from Ajaokuta in Kogi state to Kaduna and Kano states.
With over 30 sites active in the AKK gas pipeline project, thousands of Nigerians are working on the site to deliver the project on schedule. As a key driver for gas development, NNPC has developed a wide network of pipelines across the country.
These include the Escravos-Lagos Pipeline System (EPS) in the Western Network and the Oben-Sapele linked by Ajaokouta/Geregu Interconnector. The Eastern Network includes Alakiri-Obigbo-Ikot Abasi and Imo River Alaoji linked by the East/ West Interconnector Obiafu-Obrikom-Oben 1 and the OB-3 pipeline.
Under the dynamic leadership of Kyari, other gas pipeline projects being executed by the company include the ELPS-Ibadan-Illorin-Jebba Pipeline (EIIJ), Qua Iboe-Obigbo OB3 Pipeline and the Obigbo-Umuahia-Ajaokuta Pipeline. Other strategic gas facilities projects undertaken by the company include the Assa North-Ohaji South (ANOH) Gas Processing facility to compliment the Oredo Integrated Gas Handling Facility which has led to increase in domestic supply and utilization.
A major push spear headed by Mele Kyari is currently underway to engender confidence in the quality of the Nigerian resource base. To this end, NNPC and TotalEnergies have concluded plans to invest $550m to develop a gas processing facility in the southern part of Rivers State to boost domestic supplies and exports.
This huge investment, which includes a gas processing facility and pipeline, will be built on the Ubeta onshore gas field, jointly owned by NNPC and Total. On completion, the plant will would generate 350 million standard cubic feet per day of gas and 10,000 barrels per day of associated liquids, it will also supply gas to the Nigeria Liquefied Natural Gas (NLNG) plant.
Before the end of the year, Mele Kyari and his team will take Final Investment Decision (FID) on six key gas projects with the focal point of expanding the country’s gas commercialization and domestication.
Already, the NNPC has signed MoUs and project development agreements for floating LNG projects, a first in Nigeria, while currently executing a 30mmscuf/d small scale mini-LNG project. Under Kyari, NNPC leadership is determined to leverage the country’s gas assets to significantly generate value and opportunities for all Nigerians.
He sees technology as a key buffer for growth and development, prompting his leadership to develop its research institute to explore the transformative capacity of technology for the good of the society.
Apart from the ongoing ambitious expansion of gas infrastructure footprints, NNPC has also intensified efforts to enhance domestic energy access. The current leadership of the company sees energy trilemma as a profound responsibility that must be shouldered as custodians of the nation’s energy future.
Under the leadership of Kyari, the company is committed to energy security, sustainable growth, and affordability. In this regard, NNPC is set to unveil 12 Compressed Natural Gas (CNG) mother stations and mini Liquefied Natural Gas (LNG) plants in the coming months as part of efforts to boost the existing 1.6bscf of gas supply for the domestic market; the planned introduction of CNG mother stations and mini LNG plants in Abuja and Lagos are key elements in the company’s strategy to enhance access to cleaner more affordable energy while reducing reliance on imports.
The delivery of CNG in instalments may be a function of paucity of funds amidst competing priorities and other financial obligations, but under Kyari, NNPC has promised to deliver it to all Nigerians. In the coming months, NNPC Retail Limited will launch over 100 CNG sites, including 16 NNPC Gas Marketing and NIPCO Gas JV sites. Apart from being an alternative to existing available fuel products, it will be 40% cheaper than petrol.
Kyari’s transformative policies and initiatives in the nation’s energy sector are enduring and will outlive the present generation. According to experts, his lofty policies and legacy projects will drive Nigeria towards a $1tn economy by 2027. His relentless quest for Nigeria’s energy security is further reinforced by examples from other jurisdictions whose energy security profile continues to propel the concerned nations to become the topmost players in the world’s global economy
Energy security is pivotal to the pre-eminent positions these nations occupy in the world’s economic ladder; United States (26.9tn), China ($17.7tn), Japan ($4.4tn) and Germany ($4.1tn). The lesson to be learnt is that energy security is essential for sustainable development, a functional and robust economy, and the prosperity of citizens.
Given his total commitment for the nation to achieve energy security, Mele Kyari is abreast of the economic dynamics and critical factors that will shape the present and the future of our economy and is therefore on the right side of history. Challenges such as insecurity, sabotage of oil infrastructure, corruption, and oil bunkering, among other factors, continue to overshadow and undermine ongoing attempts to reposition the country on the pathway to attaining energy security.
Kyari’s intervention led to the establishment of a joint taskforce composed of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the military, and the local communities to deal with the menace posed by this challenge. As a result of this concerted effort, the country’s oil production surged to 1.8 million barrels per day, representing over 70 per cent increase by November 2024. This surge restored Nigeria’s position as Africa’s leading oil producer.
As Kyari rightly stated recently, ‘no public wealth creation endeavour can achieve any meaningful success without energy security.’ NNPC is strategically positioned to play a critical and decisive role to deliver energy security to the nation. We should rally behind Mele Kyari, a corporate leader with impeccable credentials and a track record of selfless service. He has demonstrated deep knowledge of the process and the capacity to make it possible.
Richard Ogwuche, a commentator on Public Affairs, contributed this piece from Area 1, Abuja, FCT.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has said the reduction of the Premium Motor Spirit (PMS) petrol price by the Nigerian National Petroleum Company Limited (NNPCL) will spark competition among marketers to the benefit of the consumers.
The association’s National Public Relations Officer, Dr. Joseph Obele made this known in a press statement on Saturday.
He said: “The Nigerian National Petroleum Company Limited (NNPCL) has taken a significant step in response to the competitive impact of deregulation in the downstream sector.
“The price reduction by NNPCL is seen as a response to the competitive impact of deregulation, which has led to increased competition in the downstream sector. The move is expected to spark a price war among oil marketers, ultimately benefiting consumers.”
The statement recalled that the company recently reduced the ex-depot price of Premium Motor Spirit (PMS) from ₦1,020 to ₦899 per liter.
PETROAN hailed NNPCL for responding to the call for affordable Petro prices.
It said a document released by NNPC commercial department indicates a reduction based on regional pricing scheme as: Lagos: N899; Warri: N970; Oghara N970.0; PH N970; and Calabar N970.
According to the National President of PETROAN, Dr. Billy Gillis Hary, the price reduction is a welcome development that will bring relief to motorists and Nigerians during the holiday season.
“The reduction in PMS price by NNPCL is a demonstration of the company’s commitment to making petroleum products more affordable for Nigerians,” Dr. Hary said. “We commend NNPCL for responding to our call for affordable PMS prices.”
The benefits of the price reduction to consumers include:- Reduced transportation costs: With lower PMS prices, motorists will spend less on fuel, leading to increased disposable income, Increased economic activity: Lower fuel prices will stimulate economic growth by reducing production costs and increasing demand for goods and services, – Improved standard of living: The price reduction will lead to a decrease in the cost of living, enabling Nigerians to afford basic necessities and enjoy a better quality of life.
Hary also commended Dangote Refinery for its earlier price reduction, which he said had helped to stimulate competition in the downstream sector.
Billy also hinted at a report submitted by PETROAN’s technical pricing team, which highlights the pros and cons of competitive pricing.
The report notes that competitive pricing allows companies to maintain an advantage by strategically setting prices.
This approach helps businesses understand their market position, attract new customers, and boost sales.
However, the report also warns that competitive pricing can lead to compromised product quality. Therefore, PETROAN is calling on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure compliance with quality assurance standards.
The zonal leaderships of PETROAN and state Executive Councils across the 36 states of the federation have expressed optimism that the recent price reduction by NNPC will bring relief and put smiles on the faces of Nigerians at various retail outlets nationwide.
This optimism stems from the fact that the price reduction will have a ripple effect on the economy, leading to reduced transportation costs, increased economic activity, and an improved standard of living for Nigerians.
The zonal chairman of Eastern zone High Chief Sunny Nkpe speaking on behalf of the Zonal and state leadership said, as the price reduction takes effect, PETROAN zonal and its state Executive Councils will continue to monitor the situation, ensuring that the benefits of the price reduction are passed on to the end-users, and that the overall downstream sector remains stable and conducive for business.
Dr. Joseph Obele, National Public Relations Officer of PETROAN, expressed optimism that PMS prices will drop further before the end of January 2025, given the global decline in crude oil prices and the naira’s recent gain against the dollar.
Dr. Obele described the trend as a price war while he emphasized that the price reduction by Dangote Refinery and NNPCL demonstrates the benefits of competition and advocates for the immediate privatization of government-owned refineries.
The Nigerian National Petroleum Company Limited (NNPCL) has affirmed that the Port Harcourt Refinery Company (PHRC) is fully operational.
This was disclosed in a statement issued by the NNPCL Chief Corporate Communications Officer, Mr. Olufemi Soneye, on Saturday.
The rejoinder said: “Port-Harcourt Refinery Fully Operational
The attention of the Nigerian National Petroleum Company Limited (NNPC Ltd) has been drawn to reports in a section of the media alleging that the Old Port Harcourt Refinery which was re-streamed two months ago has been shut down.
“We wish to clarify that such reports are totally false as the refinery is fully operational as verified a few days ago by former Group Managing Directors of NNPC.Preparation for the day’s loading operation is currently ongoing.
“Members of the public are advised to discountenance such reports as they are the figments of the imagination of those who want to create artificial scarcity and rip-off Nigerians.”
The Nigerian National Petroleum Company (NNPC) Foundation has facilitated the reduction of 50 per cent of the cost of business registrations for some members of the National Youth Service Corps (NYSC).
2,659 corps members across the country have participated in the NNPC Foundation Pitching Exercise.
NNPCL Foundation, Managing Director, Mrs. Emmanuella Arukwe made this known in a press statement issued to The Nation in Abuja yesterday.
The statement was titled: “NNPC Foundation: Reinventing Entrepreneurial, Economic Empowerment through Partnership with NYSC.”
It said, “In 2024, a total of 2,659 corps members across the country participated in the NNPC Foundation Pitching Exercise.
“The foundation also facilitated a 50per cent reduction in the registration fees for some of the corps members to register their businesses with the Corporate Affairs Commission (CAC) thereby starting them off on their entrepreneurial journey.”
She said in 2024, a total of 560,065 NYSC members benefited from the programme.
On the objective of the programme, the Managing Director said: “By educating corps members on financial management and entrepreneurship, the program aims to empower them to become economically self-sufficient and to contribute positively to society.”
Arukwe said but the NNPC Foundation’s NYSC Empowerment Programme goes beyond just equipping corps members with financial literacy skills.
Giving further insight about the programme, she said “Incorporated within the programme is Business Pitching Exercise. This is targeted at those corps members who exhibit keener interest and higher aptitude in pursuing establishing their own businesses and pursuing an entrepreneurial path.
Under this programme, interested corps members are further trained to hone their skills in developing business ideas into a business plan which they would pitch before a selected panel of assessors to determine winners based on market relevance, competitive edge and innovation, scalability, potential impact on the community.
During the pitching exercise, projects that standout will receive startup packs, business advisory services, and opportunities to scale their ventures.”
The efforts of the Foundation in providing humanitarian services across the country and driving youth empowerment have attracted accolades from the Institute for Humanitarian Studies and Social Development (IHSD) and the United Nations Institute for Training and Research (UNITAR), culminating in the Award for Humanitarian Excellence in Service.
The statement reads in part: “It is no news that unemployment is a major problem in Nigeria. According to the Nigerian Bureau of Statistic (NBS), unemployment rate in the first quarter of 2024 stood at 5.3% with a marginal one percent improvement to 4.3per cent in the second quarter.
Over the years, there have been a series of interventions by various government agencies and non-governmental organizations to stem the tide of unemployment in the country. From the introduction of entrepreneurial studies in schools to various skills acquisition programmes designed to transform applicants to self-employed persons and eventually employers of labour, most of the interventions appeared like a drop of water in a vast desert.
Prior to its transformation into a limited liability company under the PIA 2021, NNPC, as a responsible corporate citizen, had been involved in a series of entrepreneurial/empowerment programmes through its various subsidiaries in the form of host-community CSR programmes.
With the transformation into a limited liability company and the establishment of the NNPC Foundation, a subsidiary dedicated to carrying out the company’s social responsibility programmes in a more focused manner, the intervention in entrepreneurial/empowerment programme was retooled to address the root of the unemployment challenge, especially at the graduate level.
This gave birth to the NYSC Empowerment Programme which is designed to upscale NNPC Ltd.’s intervention to the national level while at the same time addressing the factor of financial illiteracy which had been identified as the reason for the low level of success in the various interventions.
The wisdom in incorporating financial literacy into the youth empowerment programme by the NNPC Foundation lies in the fact that one requires a dose of it to be able to establish and successfully run a business. The absence of financial literacy is believed to be the reason most of those trained and empowered with skills over the years in the various empowerment programmes often fail to establish and grow successful businesses thereby defeating the objectives of the programmes.
With the partnership with NYSC, NNPC Foundation has created a training/empowerment module targeted at young graduates mobilised for the compulsory national youth service. Across the 37 NYSC Orientation Camps in the country, interested corps members sign up for the module and are equipped with financial literacy skills to enable them manage and invest their money effectively and function as entrepreneurs.
The Nigerian National Petroleum Company (NNPC) Foundation has facilitated the reduction of 50 percent of the cost of business registrations for some members of the National Youth Service Corps (NYSC).
2,659 corps members across the country have participated in the NNPC Foundation Pitching Exercise.
NNPCL Foundation, Managing Director, Mrs. Emmanuella Arukwe made this known in a press statement issued to The Nation in Abuja on Tuesday.
The statement was titled: “NNPC Foundation: Reinventing Entrepreneurial, Economic Empowerment through Partnership with NYSC.”
It said: “In 2024, a total of 2,659 corps members across the country participated in the NNPC Foundation Pitching Exercise.
“The foundation also facilitated a 50% reduction in the registration fees for some of the corps members to register their businesses with the Corporate Affairs Commission (CAC) thereby starting them off on their entrepreneurial journey.”
She said in 2024, a total of 560,065 NYSC members benefitted from the programme.
On the objective of the programme, the Managing Director said: “By educating corps members on financial management and entrepreneurship, the program aims to empower them to become economically self-sufficient and to contribute positively to society.”
Arukwe said but the NNPC Foundation’s NYSC Empowerment Programme goes beyond just equipping corps members with financial literacy skills.
Giving further insight about the programme, she said “Incorporated within the programme is Business Pitching Exercise. This is targeted at those corps members who exhibit keener interest and higher aptitude in pursuing establishing their own businesses and pursuing an entrepreneurial path.
Under this programme, interested corps members are further trained to hone their skills in developing business ideas into a business plan which they would pitch before a selected panel of assessors to determine winners based on market relevance, competitive edge and innovation, scalability, potential impact on the community.
During the pitching exercise, projects that standout will receive startup packs, business advisory services, and opportunities to scale their ventures.”
The efforts of the Foundation in providing humanitarian services across the country and driving youth empowerment have attracted accolades from the Institute for Humanitarian Studies and Social Development (IHSD) and the United Nations Institute for Training and Research (UNITAR), culminating in the Award for Humanitarian Excellence in Service.
The statement reads in part: “It is no news that unemployment is a major problem in Nigeria. According to the Nigerian Bureau of Statistic (NBS), unemployment rate in the first quarter of 2024 stood at 5.3% with a marginal one percent improvement to 4.3% in the second quarter.
Over the years, there have been series of interventions by various government agencies and non-governmental organizations to stem the tide of unemployment in the country.
From the introduction of entrepreneurial studies in schools to various skills acquisition programmes designed to transform applicants to self-employed persons and eventually employer of labour, most of the interventions appeared like a drop of water in a vast desert.
Prior to its transformation into a limited liability company under the PIA 2021, NNPC, as a responsible corporate citizen had been involved a series of entrepreneurial/empowerment programmes through its various subsidiaries in the form of host-community CSR programmes.
With the transformation into a limited liability company and the establishment of the NNPC Foundation, a subsidiary dedicated to carrying out the company’s social responsibility programmes in a more focused manner, the intervention in entrepreneurial/empowerment programme was retooled to address the root of the unemployment challenge, especially at the graduate level.
This gave birth to the NYSC Empowerment Programme which is designed to upscale NNPC Ltd.’s intervention to the national level while at the same time addressing the factor of financial illiteracy which had been identified as the reason for the low level of success in the various interventions.
The wisdom in incorporating financial literacy into the youth empowerment programme by the NNPC Foundation lies in the fact that one requires a dose of it to be able to establish and successfully run a business.
The absence of financial literacy is believed to be the reason most of those trained and empowered with skills over the years in the various empowerment programmes often fail to establish and grow successful businesses thereby defeating the objectives of the programmes.
With the partnership with NYSC, NNPC Foundation has created a training/empowerment module targeted at young graduates mobilised for the compulsory national youth service.
Across the 37 NYSC Orientation Camps in the country, interested corps members sign up for the module and are equipped with financial literacy skills to enable them manage and invest their money effectively and function as entrepreneurs.
The Nigerian National Petroleum Company Limited (NNPCL) has revealed that the firm facilitated the $3 billion Gazelle loan as a critical intervention to help stabilize the federation foreign exchange crisis.
Its Chief Corporate Communications Officer, Mr Olufemi Soneye broke the news at the Energy Relations Stakeholders Engagement in Abuja on Monday.
“Additionally, Kyari facilitated the $3 billion Gazelle loan, a critical intervention that helped stabilize the federation during a challenging foreign exchange crisis,” he said.
Recalled that the loan was an Afreximbank crude oil prepayment facility that NNPCL sponsored in January 2024.
Soneye also said the NNPCL decided to secure a $1 billion loan backed by its crude oil that was instrumental in supporting the Dangote Refinery.
According to him, the initiative is a testimony to NNPCL dedication to drive national development partnership.
He said: “A strategic decision to secure a $1 billion loan backed by NNPC’s crude was instrumental in supporting the Dangote Refinery during liquidity challenges, paving the way for the establishment of Nigeria’s first private refinery.
“This initiative underscores NNPC’s dedication to fostering public-private partnerships that drive national development.”
The spokesperson said the leadership of Mele Kyari, NNPC Ltd has achieved groundbreaking milestones, redefining the trajectory of Nigeria’s oil and gas sector.
Soneye said the restart of the Port Harcourt Refinery marks a significant turning point in Nigeria’s quest for energy self-sufficiency, reaffirming the company’s commitment to revitalizing the nation’s refining capacity.
NNPC, he stressed, has also championed the adoption of Compressed Natural Gas (CNG) as an alternative energy source, offering Nigerians a cleaner and more cost-effective solution amidst rising global energy costs.
He recalled that in a historic achievement, NNPC, under Kyari’s leadership, declared profit for the first time in decades, marking a significant financial turnaround.
He added that the company has already exceeded its profit projections for 2024, a testament to the transformative reforms he has implemented.
He pledged that as a responsible energy company, NNPC Ltd continues to strengthen Nigeria’s energy sector while solidifying its legacy as a transformative force and a global game-changer.
On the stakeholders’ meeting, he said NNPCL recognizes the roles the stakeholders play in shaping the future of energy in Nigeria and beyond.
He stressed: “Together, we stand at the forefront of a transformative era in the global energy landscape, where collaboration, innovation, and sustainability are key to success.”
Energy relations, he said, are the backbone of NNPC Ltd’s operations and strategic aspirations as an integrated energy company. In a rapidly evolving global energy landscape, fostering strong relationships with stakeholders across the value chain is not just a priority but a necessity for achieving the objectives.
Soneye said NNPC Ltd remains committed to fostering meaningful relationships, driving excellence, and delivering value across the energy value chain.
He added that the meeting underscores the shared vision to ensure energy security, economic growth, and environmental stewardship for the benefit of all.
He energy relations are more than a strategic tool—they are integral to our mission to deliver energy for today and tomorrow, driving value for our stakeholders and empowering our nation.
In his presentation on NNPC Ltd Transition, Post – Petroleum Industry Act (PIA),” Mr. Arinze Okafor said the NNPCL has evolved from what it was as a corporation since 1977 to a public liability company today in accordance with the Company and Allied Matters Act (CAMA).
He said the operation of the company is now very swift because the NNPCL now gets approval from its board instead of seeking it from the Federal Executive Council (FEC).
“All our approval was from FEC but today it is done by the board,” said Arinze.
Supporting the staging of Prof. Femi Osofisan’s play “Once Upon Four Robbers” in Abuja yesterday, the Nigerian National Petroleum Company Limited (NNPCL) promoted patriotism and good morals.
Speaking with reporters after the show, NNPCL’s Chief Corporate Communications Officer, Mr. Olufemi Soneye, stated that the choice of the play was intended to emphasise that “Change begins with us.”
Soneye urged citizens to live a life of integrity, emphasising that patriotism is key to building a strong society.
He expressed gratitude to Osofisan, the drama troupe, and the audience, noting that NNPCL would support future performances whenever necessary.
His words: “We are glad to be part of this. Thank you Prof. Femi Osiofisan. For us in NNPCL, what really made us choose this is you can now see that this stage play emphasizes the fact that change begins with each and every one of us as a citizen.
“You can see that this does not only show patriotism but also promotes morals and for us to live a right life. So, for us as NNPCL, we are encouraging and promoting not only that people should have good morals but also to know that as citizens, change begins with us. “Whatever we do in our daily life, we should show a sense of patriotism and a sense of a responsible individual. This is the only way the country can grow and be a good society.
“Thank you very much and enjoy the end of the year and Christmas. We thank you all. Thank you for bringing the show to Abuja.
“We are glad to have you and in the future, we will also support it and any good thing you want to do.”
Meanwhile, Osofisan expressed surprise that several years after he wrote the play, it remains topical and relevant to addressing the issues of robbery, morality, and societal values.