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Tag: NNPCL

  • NNPCL/Seplat provides free eye health services in Imo

    NNPCL/Seplat provides free eye health services in Imo

    The NNPC Ltd/ Seplat Energy Joint Venture (JV) partnership has conducted a medical outreach, providing free eye health services to individuals with visual impairments in Ohaji/Egbema community of Imo State.

    Through its “Eye Can See” programme, a Corporate Social Responsibility (CSR) initiative, the JV dispensed more than 10,000 reading glasses and successfully performed 639 eye surgeries, including cataract removals, for host community members who otherwise had limited access to such vital medical services.

     NNPCL Chief Communications Officer, Mr Olufemi Soneye disclosed this in a statement on Friday. 

    The statement said: “The “Eye Can See” programme, which commenced in 2017, has been a beacon of hope in the eastern asset of the NNPC upstream investments, positively impacting over 20,000 people to date.”

    In his remarks during the event, Chief Upstream Investment Officer of NNPC’s Upstream Investment Management Services (NUIMS), Bala Wunti, represented by Dr. Obinna Otuu, Manager, JV Asset B emphasized the significance of the initiative to NNPC Ltd’s corporate mission of enriching the lives of Nigerians.

    Read Also: 8000 illegal refineries destroyed in six months, says NNPCL

    Elaborating further on the broader vision behind the programme, Wunti stated that the NNPC Ltd takes pride in being more than just an energy provider. “We are a partner in progress, dedicated to making sustainable contributions to the communities that support us,” he added.

    According to him, the “Eye Can See” initiative reflects “our belief that corporate structures can and should play a vital role in societal development.”

    He noted that the programme goes beyond immediate medical care by educating individuals on lifestyle choices to prevent conditions like hypertension and diabetes, which can lead to permanent vision loss.

    Expressing appreciation for the support of the local government, beneficiaries, and NNPC Ltd’s partners, Wunti observed that together with Seplat, the National Oil Company is paving the way for a brighter future where access to essential health services is possible for all.

    “This project is not just about restoring vision; it is about giving people hope and the opportunity to lead fulfilling lives. This year’s outreach in Ohaji/Egbema is a testament to the ongoing commitment of NNPC and Seplat to improve the quality of life in their host communities,” he affirmed.

    The “Eye Can See” initiative has had a profound impact on the communities it serves. By providing free eye screenings, surgeries, reading glasses, and health education, the programme has transformed lives and restored hope to many who had been suffering from visual impairments.

    NNPC/Seplat JV remains dedicated to contributing meaningfully to Nigeria’s development through initiatives like the “Eye Can See” programme. The partnership is committed to expanding the reach of its CSR programmes, ensuring that even more people across Nigeria can benefit from the life-changing services.

  • 8000 illegal refineries destroyed in six months, says NNPCL

    8000 illegal refineries destroyed in six months, says NNPCL

    Deputy Manager of the Nigerian National Petroleum Company Limited (NNPCL), Command and Control Centre, the Murtala Muhammad, said that over 8,000 illegal refineries and 5,800 illegal oil pipeline connections were detected and destroyed within six months.

    He disclosed this in Abuja on Saturday, at a Stakeholders Engagement Session with National Assembly journalists.

    Muhammad, who highlighted that oil theft remains a serious concern, these were primarily in Bayelsa, Rivers, Imo, and Abia.”

    The Chief Corporate Communications Officer (CCCO) of NNPCL, Olufemi Soneye, said they have the capacity to increase crude oil production from 1.7 million barrels per day to 3 million.

    Soneye said achieving this goal requires support from all stakeholders, including security agencies, government, privately-owned oil companies, and host communities.

    Read Also: Uzodimma: Nigeria’s brightest days lie ahead

    He said that President Bola Tinubu’s directives to relevant security agencies have already yielded positive results, with daily oil production rising from 1.4 million to 1.7 million barrels.

    Soneye noted that synergy among stakeholders was crucial in combating oil theft and pipeline vandalism, which would create an enabling environment for optimal oil production of 2.5 to 3 million barrels per day.

    He said previously, oil production had plummeted to 900,000 barrels per day before private security agencies and military interventions.

    Soneye expressed relief that the intensified efforts against oil theft have alleviated concerns.

    In his presentation at the forum, a resource person, Prof. Taiye Obateru, stressed the importance of balanced and fair reporting in nation-building.

    He urged journalists to avoid spreading misinformation that could spark societal crises.

    “As journalists, you must shun mal-information, which manifests through fabricated contents, false contents, satire, and parody,” Obateru said.

  • Oil production: 3m barrels per day achievable – NNPCL

    Oil production: 3m barrels per day achievable – NNPCL

    The Nigerian National Petroleum Company Limited (NNPCL), yesterday  said that crude oil production output of three million barrels per day is achievable up from the present 1.7million.

    The Chief Corporate Communications Officer (CCCO) of NNPCL, Olufemi Soneye disclosed this in his address at a Stakeholders Engagement Session for journalists covering the National Assembly in Abuja.

    Soneye said the feat is attainable with support from all critical stakeholders.

    He said the political will towards the target is already provided by President Bola Tinubu with directives  to relevant security agencies to stem the ugly tide of oil theft and pipeline vandalism which according to him, led to increase  in daily oil production from 1.4 million to 1.7milliion barrels per day.

    Soneye said: “Three million barrels oil production per day is achievable in Nigeria if all the stakeholders work in synergy for that purpose from the security agencies both government and private owned, to oil companies and host communities.

    “With expected synergy from all the relevant stakeholders on war  against oil theft and pipeline vandalism, required enabling environment would be in place for optimal oil production to the volume of 2.5 to 3million barrels per day.”

    Read Also: It is time for a marshall plan for Northern Nigeria

    He lamented that at a point, oil production dropped to 900,000 barrels per day in the country before the engagement of private security agencies and renewed efforts of the military.

    “At that time, we felt Nigeria was in trouble as far as oil theft was concerned but, the intensity of war against it, has allayed our fears,” he said.

    However, in a powerpoint presentation on the menace of crude oil theft and its impact  on Nigeria’s economy, the Deputy Manager, NNPC Command and Control Centre, Murtala Muhammad, said the crime of oil theft remains of serious concern.

    According to him, over 8,000 illegal refineries and 5,800 illegal oil pipeline connections were detected and destroyed within the last six months.

    He listed Bayelsa, Rivers, Imo, Abia etc, as the hot spots of the crime.

    In his paper presentation on “Balancing Reporting and Nation Building: The Role of National Assembly Press Corps,” the resource person, Professor Taiye Obateru, emphasised on the need for fairness and national interest in all reportage of stories by the media.

  • 3m barrels per day oil production achievable – NNPCL

    3m barrels per day oil production achievable – NNPCL

    The Nigerian National Petroleum Company Limited (NNPCL) said that crude oil production output of three million barrels per day is achievable up from the current 1.7million.

    The Chief Corporate Communications Officer (CCCO) of NNPCL, Olufemi Soneye, stated this in an address at a stakeholders engagement swssion for journalists covering the National Assembly in Abuja.

    Soneye said the feat is attainable with support from all critical stakeholders.

    He said the political will towards the target is already provided by President Bola Tinubu with directives  to relevant security agencies to stem the ugly tide of oil theft and pipeline vandalism which according to him, led to increase  in daily oil production from 1.4 million to 1.7milliion barrels per day.

    Soneye said: “Three million barrels oil production per day is achievable in Nigeria if all the stakeholders work in snergy for that purpose from the security agencies both government and private owned, to oil companies and host communities.

    “With expected synergy from all the relevant stakeholders on war  against oil theft and pipeline vandalism, required enabling environment, would be in place for optimal oil production to the volume of 2.5 to 3million barrels per day.”

    He lamented that at a point, oil production dropped to 900,000 barrels per day in the country before the engagement of private security agencies and renewed efforts of the military.

    “At that time, we felt Nigeria was in trouble as far as oil theft was concerned but, the intensity of war against it, has allayed our fears,” he said.

    Read Also: NNPCL, Dangote Refinery row rages over price of petrol

    However, in a power point presentation on the menace of crude oil theft and its impact  on the economy, the Deputy Manager, NNPC Command and Control Centre, Murtala Muhammad, said the crime of oil theft, remains of serious concern.

    According to him, over 8,000 illegal refineries and 5,800 illegal oil pipeline connections were detected and destroyed within the last six months.

    He listed Bayelsa, Rivers, Imo, Abia etc, as the hot spots of the crime.

    In his paper presentation on “Balancing deporting and nation Building: The fole of National Assembly Press Corps,” Professor Taiye  Obateru, emphasised the need for fairness and national interest in all reportage of stories by the media.

  • NNPCL, FIRST E&P, NCF move to restore local biodiversity

    NNPCL, FIRST E&P, NCF move to restore local biodiversity

    The Nigerian National Petroleum Company Limited (NNPCL) and FIRST Exploration and Petroleum Development Company Limited (FIRST E&P) Joint Venture, in partnership with the Nigerian Conservation Foundation (NCF), have announced the launch of the ALEC Initiative (Afforestation, Livelihood Enhancement, and Carbon Sequestration).

    The initiative, seen as a decisive move towards environmental sustainability and community empowerment, will work to combat critical issues of deforestation, biodiversity loss, and climate change in 11 littoral communities of Bayelsa State while simultaneously enhancing the socio-economic well-being of the local population.

    In Nigeria, the situation calls for immediate action, with an estimated 70-80 per cent of the nation’s original forests already lost to unsustainable logging and agricultural expansion, as reported by Global Forest Watch and the Food and Agriculture Organisation (FAO).

    Moreover, Nigeria harbours 309 species that are currently listed as threatened on the International Union for Conservation of Nature (IUCN) Red List.

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    Without immediate and decisive action, Nigeria is on track to lose its remaining mangrove forests by 2050, according to projections by the Nigerian Conservation Foundation (NCF) – a loss that would not only exacerbate the effects of climate change but also further endanger the country’s rich biodiversity.

    In response to these pressing issues, the ALEC Initiative will plant half a million trees over a span of five years and work towards rehabilitating and conserving critical ecosystems in the host communities for the NNPC Ltd/FIRST E&P JV.

    In addition to contributing to global climate mitigation efforts through enhanced carbon sequestration, the initiative will help restore some critical mangrove and tropical forest habitats for these communities in a bid to create greener, more sustainable ecosystems that benefit both people and wildlife.

    Chief Upstream Investment Officer, NNPC Upstream Investment Management Services (NUIMS), Bala Wunti, said, “This initiative reflects our dedication to environmental stewardship and social responsibility as well as a clear understanding that sustainable business success is inherently tied to the well-being of the communities we serve and the ecosystems we rely on.”

    During the official launch of the initiative with a signing event held at the Lekki Conservation Centre in Lagos, this week, the Executive Director, Corporate Services at FIRST E&P, Emmanuel, said: “The ALEC Project marks a pivotal step in our journey towards a sustainable future.”

    Etomi noted that “By restoring the vital ecosystems of our host communities, we are not only addressing a critical environmental need but also empowering local communities with new economic opportunities.

    “This project exemplifies the powerful synergy between environmental stewardship and community development, underscoring our deep commitment to leaving a lasting legacy of positive impact.”

    Also speaking, the Director General of the Nigerian Conservation Foundation (NCF), Dr. Joseph Onoja, remarked, “We are very excited about this project because it aligns with our strategic pillars, such as habitat restoration, tackling the climate crisis, and species conservation.”

    According to him, “This project will help us achieve some of the key goals we have set and ensure that people in the beneficiary communities, as well as Nigerians as a whole, enjoy a better quality of life while safeguarding the environment.”

    A statement, which was made available to The Nation by the partners, said the project marks the beginning of an ambitious journey toward environmental renewal and community resilience.

    It stated that the initiative not only reinforces Nigeria’s leadership in global efforts to combat climate change and biodiversity loss but also underscores the nation’s critical role in fostering sustainable development.

  • NNPCL woos investors for Brass, OK LNG projects

    NNPCL woos investors for Brass, OK LNG projects

    The Nigerian National Petroleum Corporation Limited (NNPCL), has said it is leveraging on President Bola Tinubu’s Presidential Executive Orders on Oil and Gas reforms and the Petroleum Industry Act (PIA), to woo investors in a bid to revive the Brass and Olokola Liquefied Natural Gas (LNG) projects.

    NNPCL’s Chief Financial Officer (CFO), Umar Ajiya, disclosed this on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, United States, at the weekend.

    Read Also: Adeleke increases salary of UNIOSUN workers

    Brass LNG and OK LNG are two LNG projects with the potential of manifold economic benefits for the country which include job creation, power generation, revenue generation, and economic diversification. The multi-billion-dollar projects were however stalled due to unfavourable market dynamics and slow decision-making by the political class in the past.

    “In the past, gas prices went down, the economics of the projects meant a high Capital Expenditure (CAPEX) and this was a disincentive for investors and partners. Also, there was slow decision-making by the political class,”’ the CFO added.

    While describing NNPCL as a commercially driven Company which recognises timely project development and execution, the CFO said there are abundant gas resources in many parts of the world and therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.

    Ajiya commended President Tinubu for his support in driving new projects in the Industry through the Presidential Executive Orders on Oil and Gas reforms.

    “We are also happy to have the Petroleum Industry Act (PIA) 2021 which has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector,” he added.

    Ajiya described Gastech as an avenue for NNPCL to learn new technologies which will help the Company decarbonise its operations and promote its abundant LNG resources to the global market.

  • NNPCL moves to revive Brass, OK LNG projects

    NNPCL moves to revive Brass, OK LNG projects

    Nigerian National Petroleum Company Limited (NNPCL) has begun discussions with investors towards bringing back two Liquefied Natural Gas (LNG) projects, Brass and Olokola LNG projects.

    The essence is in its bid to maximise the nation’s abundant gas resources for economic development and prosperity, 

    NNPC Ltd’s Chief Financial Officer (CFO), Mr. Umar Ajiya disclosed this on the sidelines of the ongoing 2024 Gas Technology Conference and Exhibition (Gastech), in Houston, United States, on Thursday.

    Chief Corporate Communications Officer Mr. Olufemi Soneye made this known in a press statement yesterday.

    Brass LNG and OK LNG are two LNG projects with the potential of manifold economic benefits for the country which include job creation, power generation, revenue generation and economic diversification. 

    The multi-billion dollar projects were however stalled due to unfavourable market dynamics and slow decision-making by the political class in the past.

    “In the past, gas prices went down, the economics of the projects meant a high Capital Expenditure (CAPEX) and this was a dis-incentive for investors and partners. Also, there was slow decision-making by the political class,”’ the CFO added.

    While describing NNPC Ltd as a commercially driven Company which recognises timely project development and execution, the CFO said there are abundant gas resources in many parts of the world and therefore, the earlier Nigeria makes smart decisions to bring partners to the table, the better.

    Read Also: CSOs demand investigation into Dangote refinery, NNPCL dispute

    Ajiya commended President Bola Ahmed Tinubu for his support in driving new projects in the Industry through the Presidential Executive Orders on Oil & Gas Reforms.

    “We are also happy to have the Petroleum Industry Act (PIA) has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector.” 

    Ajiya described Gastech as an avenue for NNPC Ltd to learn new technologies which will help the Company decarbonise its operations and promote its abundant LNG resources to the global market.

    Gastech is the world’s leading forum dedicated to delivering a more sustainable energy future by bringing together experts who brainstorm to create pathways towards global energy security for lasting climate impact. 

  • CSOs demand investigation into Dangote refinery, NNPCL dispute

    CSOs demand investigation into Dangote refinery, NNPCL dispute

    A coalition of civil society organisations under the National Civil Society Council of Nigeria (NCSCN), has raised concerns over the escalating tensions between Dangote Refinery Ltd (DRL) and the Nigerian National Petroleum Company Ltd (NNPCL).

     The dispute, which has become a subject of public controversy, centres on allegations and counter-allegations about the pricing and supply of Premium Motor Spirit (PMS).

    Nigerians had hoped that the refinery’s operations would end the era of fuel scarcity and reduce the pump price of petrol. 

    However, recent events have cast a shadow over these expectations.

    The coalition referenced a series of press releases from DRL and NNPCL that have fueled public confusion. 

    On September 15, 2024, Anthony Chiejina, Group Chief Branding and Communication Officer of DRL, accused  NNPCL of disseminating “misleading and mischievous” information about the price at which it was purchasing PMS from the refinery. 

    Chiejina urged Nigerians to disregard the NNPCL’s claims and await a formal pricing announcement from the government-appointed Technical Sub-Committee on Naira-based crude sales.

    The following day, NNPCL’s Chief Group Communication Officer, Olufemi Soneye, responded with a press release stating that PMS prices are not set by the government but are negotiated between parties. 

    Soneye confirmed that NNPCL was paying DRL in USD for the September 2024 offtake, emphasising that any price dispute could potentially lead to a discount that would benefit the public.

     He also provided estimated pump prices of PMS across NNPCL retail stations, further complicating the narrative.

    Read Also: We aren’t aware of other petrol importers apart from NNPCL, says NMDPRA

    The NCSCN described these developments as “weighty allegations and counter-allegations that cannot be swept under the carpet.”

     The coalition called for an independent inquiry into the matter and raised several critical questions about DRL’s operations, including why the refinery appears to be negotiating PMS prices with NNPCL in a deregulated market and why other petroleum marketers seem reluctant to buy from DRL.

    Blessing A. Akinlosotu, Executive Director of NCSCN, emphasised the urgency of the situation.

    He stated: “We demand Dangote Refinery Ltd to immediately address these issues and provide clear answers to the Nigerian people. This is not just about business; it’s about national interest and the well-being of millions of Nigerians who are already burdened by economic challenges.”

  • Why PH refinery is not producing, by NNPCL

    Why PH refinery is not producing, by NNPCL

    The Executive Vice President, Downstream, Nigerian National Petroleum Company (NNPCL) Limited, Adedapo Segun, has said the Port Harcourt Refinery is on course to produce petrol. He spoke in Lagos at the weekend.

    According to him, based on the projections for the refinery to deliver the products to the market, it would be unfair to say the NNPCL has not delivered, especially when it is considered that it is a brownfield refinery.

     “We gave our projections based on data available. The Port Harcourt refinery, a brownfield refinery, achieved mechanical completion last December and by August, we fired up the burners, meaning the distillation process has started. So, the Port Harcourt refinery has started the distillation process, but yet to produce products to tank specification at the moment,” Segun said.

    He said the process at times is interrupted by other unforeseen developments, which invariably interferes with advancement in levels already attained and leading to a halt or restart of the process.

     “When the distillation is started, the temperature is raised over time and rises to as high as 300 degrees centigrade. At this stage, if anything goes wrong, because at 300 degrees, a lot can go wrong, you have to bring it down; you can’t intervene. It could be that the flames or the burner are not at the level at which it should be, because maybe the burner is clogged. You don’t go in there and unclog it at 300 degrees centigrade; you bring it to cool down, clean it up, you put it back, you start heating it up again. We’ve done this four times since August at the Port Harcourt refinery, and each time a different thing comes up. We have to bring it down to fix it. I’m very confident now that we are at that point now where I’m very, very confident all is set,” he explained.

    Elucidating further on his position, Segun drew comparison with the Dangote Refinery- a greenfield facility. “Dangote Refinery achieved mechanical completion in May last year, started producing diesel (AGO) in March this year, which is about 10 months after. Port Harcourt Refinery, a brownfield refinery that we have rehabilitated, not a brand new refinery like Dangote refinery achieved mechanical completion in December and this is September, and we’re hoping to start producing middle distillates. The same middle distillates that Dangote refinery started producing in March, April, we’re working towards producing it in September. Have we been inefficient? That’s the question we need to ask ourselves,” the EVP asked rhetorically.

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    He added that it has taken Dangote Refinery from its mechanical completion in May last year, about 16 months to begin production of petrol in September this year, and as such PH refinery not yet producing petrol nine months after its mechanical completion, should not be seen as a failure.

     “This is still nine months. But there’s a need to be fair in our expectations. We can set the range of when we think it (production) will happen. But this is a process that has to go through. It’s a process you can’t say, because I’ve said, I’m going to, I’m going to start producing in December, in January, or in March and there’s an issue with the process, and you just say, No, I’m not going to go through the process of getting things right. I’m just going to jump in and get this, get things going again. Safety is very important, and that’s why I do all I can to keep the people on the plants, away from the pressures someone is working in an environment that is in excess of 300 degrees.

     “We’re optimistic. We believe that Port Harcourt Refinery will start producing middle distillates to tank this month. And we’ve said that before. We still believe that we’ve gone through since all since August. We’ve started firing up the burners again after we brought it down last night to fix something. This was thankfully, an easy fix, and we are going to start eating it up again. So that’s basically is what’s going on with Port Harcourt refinery.

     “But I’m very optimistic that products from the refinery will go to tank this month. When you say that, you’re saying that because of what you see, if something unexpected happens, we can’t say because I’ve set a time now force the process; nobody forces any process at 300 degrees centigrade,” Segun said.

  • ANALYSIS: Pump of controversies

    ANALYSIS: Pump of controversies

    Nigeria’s quest for domestically-refined petrol berthed with much ecstasy. But it’s becoming increasingly steeped in controversies. Dangote Petroleum Refinery on Sunday delivered the first set of Premium Motor Spirit to the Nigerian National Petroleum Company Limited (NNPCL), ushering in the prospects of a new era of sufficient and stable domestic fuel. 

    As the excitements of the first pump subsided, the controversies grew. NNPCL paid $120 million for supply of 25 million litres, which the oil giant calculated amounted to plant cost of N898 per litre, N43 above NNPCL’s base retail price of N855 per litre. Dangote released 16.3 million litres, a shortfall of 8.7 million litres.

    Dangote thundered mischief, sensing that NNPCL’s subtle relay of the actual cost was a sort of anti-climax for a populace that had cheered and hoped that much-awaited “domestic petrol” will bring drastic reduction in retail pump price. NNPCL brandished transaction documents with a direct challenge to Dangote to proof that the plant cost is otherwise. There is eerie silence.

    Playing the market forces of cost-plus margin, NNPCL, a national oil corporation converted into a private limited liability profit-making company by the Petroleum Industry Act (PIA) 2021, yesterday released a new retail price template with a price of N950 for Lagos State, its shortest supply route. Borno State, in the far north, will pay N1,019 per litre.  NNPCL runs a retail pricing template that provides for a slight premium on the average base price, depending on the distance of the supply route.

    Besides, NNPCL also considers many other factors in deciding its price template. These include mandatory NMDPRA Levy of N4.495 per litre, Midstream and Gas Infrastructure Fund (MDGIF) of N4.495 per litre, and the Distribution and Logistics cost of N42.45 per litre.

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    It’s a delicate balance, but the populace may just as well be waking up to the undertones of reality in the loud orchestra of “Dangote petrol”. It’s a market; of private companies, willing buyers and willing sellers, moderated by global oil industry and several domestic players.     

    A report indicated that the price of petrol per metric ton (MT) based on the Platts10ppm benchmark at the weekend was $690, lower than Dangote Refinery’s PMS Gantry pricing of  $736 per metric ton at the same period, a difference of $46. On per-litre basis, petrol from Platts10ppm was priced at $0.52, three basis points lower than Dangote Refinery’s $0.55. Converted into naira, Platts10ppm’s petrol was N842.61 per litre compared to N898 per litre for Dangote. But then, Dangote, without the extensive logistics and costs of shipping and depot, could become more competitive when the extra costs are factored into the offshore fuel.

    The emerging scenario is an intricate one for the nation and its oil industry. The PIA, signed into law in 2021, envisages a deregulated oil industry with market forces at the core of business decisions. At the extreme of its conversion process, NNPCL is mandated to be listed at the stock market, fully opening up the corporation-turned company to the general investing public. Shareholders-owned companies run on the basis of value accretion for all stakeholders, running profitable business to the satisfaction of customers and reward of shareholders. NNPCL, which has variously been projected for listing in 2025, won’t be different. While government’s majority shareholding, depending on the size of the initial public offering (IPO), and the clause of “supplier of last resort” may moderate the operations of the company, most decisions will be taken on hardcore business basis.  

    NNPCL is, with a more astute sense of sincerity, ringing the bell of the emerging future to the populace, before it rings the ceremonial gong that welcomes it to the stock market.

    All the parties- NNPCL, Dangote Refinery, the government and oil industry stakeholders need to show greater sense of sincerity and the public need to show stronger discernment as Nigeria navigates the last hurdles of petroleum sector’s deregulation.

    There is a high optimism on the October 1 takeoff of the “naira-for-crude, naira –for-products” arrangement. The “naira-for-crude, naira-for-product”, a well-applauded financial arrangement brokered by President Bola Tinubu, is a domestic payment arrangement, whereby crude oil is sold to local refineries and petroleum products are purchased in naira. It is designed to alleviate pressure on the naira and reduce transaction costs.

    The implementation of the “naira-for-crude, naira for product” arrangement is under the guidance of the Federal Executive Council (FEC) and immediate direction and monitoring of the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun and the Chairman of the Federal Inland Revenue Service (FIRS), Mr. Zach Adedeji.

    However, the Technical Sub-Committee, which is being touted as a price-fixing agency, may not be more than a moderator, modulating the market forces , without undermining the core objectives of the PIA and the long-term competitiveness of the downstream oil sector. 

    At this juncture, there is a need for de-escalation of rhetorics and a more constructive and since discussion on the future of Nigeria’s downstream oil sector. Continuing subsidy poses risks of smuggling, arbitrage, underdevelopment and possible future monopolistic tendencies. A fully deregulated petrol market faces the challenge of hard-hit populace bearing the early pains of strenuous economic reforms. So, it’s a delicate situation.