Senator Heineken Lokpobiri discussed the benefits of deregulating Nigeria’s downstream oil sector, emphasizing its importance for Nigerians amidst initial challenges. He committed to working with PETROAN to enhance value and address concerns related to crude oil swaps and NNPC’s operational independence, highlighting the need for competition and diverse petroleum supply sources.
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources, asserted that Nigeria is beginning to reap the benefits of the full deregulation of the downstream oil sector initiated by President Bola Tinubu’s administration. During a meeting with PETROAN leaders in Abuja, Lokpobiri acknowledged the challenges faced in making this decision but emphasized its importance for Nigerians. He noted that the domain of petrol retailers is pivotal, as approximately 90% of Nigerians obtain fuel from these outlets.
The minister expressed a commitment to collaborating with PETROAN to enhance value for consumers and highlighted the group’s operational reach extending to neighboring countries like Chad and Cameroon. He stated, “It was a very difficult decision to get the sector fully deregulated. It was something that no leader had the courage to do. But today, everybody can agree that we are getting the benefit of full deregulation.”
He detailed how deregulation has balanced fuel prices across Nigeria and created investment opportunities within the sector. Looking ahead, Lokpobiri expressed aspirations for fuel stations to become equipped with Compressed Natural Gas (CNG) components, indicating gas as a transitional energy source. Furthermore, he committed to supporting endeavors that promote CNG distribution.
Responding to concerns raised by PETROAN regarding the naira-for-crude oil swap initiative, Lokpobiri clarified there are no plans to discontinue it. He explained that it operates as a pilot scheme involving local transactions in Naira. The minister clarified, “Government is not cancelling it” and indicated that private sector negotiations would continue regarding crude oil pricing regardless of currency used.
Lokpobiri addressed the role of the Nigerian National Petroleum Company Limited (NNPC), noting that the entity now operates with a level of independence akin to international oil companies like Petrobras and Aramco. He emphasized that this approach allows for strategic decision-making to maximize the industry’s potential while maintaining occasional government oversight.
Dr. Billy Gillis-Harry, President of PETROAN, commended Lokpobiri for his effective leadership in improving oil production and combating oil theft. He also highlighted initiatives that have reduced bureaucratic delays in the licensing process, ensuring better value for Nigeria’s oil resources. Gillis-Harry advocated for local refiners to sustain operations and ensure diverse sources of petroleum supply, including imports, to foster competition and maintain reasonable domestic prices.
In conclusion, Senator Heineken Lokpobiri affirmed the positive outcomes resulting from the deregulation of Nigeria’s downstream oil sector, despite the initial challenges. The minister’s collaboration with PETROAN aims to enhance fuel distribution and investment opportunities, while his insights on the naira-for-crude oil format and the NNPC’s operational independence further clarify the government’s approach. The partnership between the government and oil retailers remains a core element in improving fuel availability and pricing for Nigerians, ultimately supporting the nation’s economic growth.
Original Source: www.arise.tv
