Oil and gas
NEYGA Slams NNPLC’s over sole Buyer role for Dangote Refinery fuel
The Northern Ethnic Youths Group Assembly (NEYGA) has criticized the Nigerian National Petroleum Corporation’s (NNPC) decision to be the sole buyer of Premium Motor Spirit (PMS) from Dangote Refinery. NEYGA argued that the move will undermine competitive market principles and restricts consumers’ rights, exacerbating the current fuel scarcity crisis in Nigeria.
The group expressed the believe that allowing Dangote’s refinery to operate in a truly competitive market could alleviate the fuel shortage.
NEYGA also accused the NNPC of prioritizing oil cartels’ interests over citizens’ welfare, contributing to escalating inflation and hardship across various economic sectors.
NEYGA, in a statement signed by its spokesperson, Mr. Ibrahim Dan-Musa, sent to journalists in Abuja, , highlighted that while Dangote Refinery has begun refining petroleum products, the NNPC’s monopoly over purchasing these products is detrimental to the country.
He criticized the president’s earlier directive for the NNPC to sell crude oil to Dangote in Naira, labeling it a political ploy that has not been implemented in practice.
Dan-Musa emphasized that the fuel shortage could be alleviated if Dangote’s refinery were allowed to operate in a truly competitive market. He condemned the NNPC’s management for their apparent disregard for the struggles of ordinary Nigerians, urging President Tinubu to acknowledge the hardships caused by fuel scarcity.
He pointed out that the rising fuel prices, which have reached as high as N1,000 to N1,500 per liter in some areas, are contributing to escalating inflation and hardship across various economic sectors.
The Civil Group lamented that many Nigerians are enduring long queues for fuel, with some waiting up to 48 hours in Abuja. He accused the NNPC of prioritizing the interests of oil cartels over the welfare of the citizens, calling on influential figures in Nigeria to speak out against the worsening situation.
NEYGA further criticized the NNPC’s decision as an attempt to maintain monopolistic control over the fuel market, which he argues contradicts the objectives of the Petroleum Industry Act (PIA). He stressed the importance of fostering healthy competition throughout the petroleum value chain, stating that the NNPC’s actions are contrary to the spirit of the PIA, which took nearly two decades to pass. Despite the legislation, he claims that the NNPC continues to operate in ways that undermine its intended goals.
Oil and gas
Nigeria’s Oil Earnings Projected to Hit N6.9 Trillion Monthly with Production Increase
The Federal Government may see a significant rise in revenue, up to N6.99 trillion monthly, following an increase in oil production to 1.8 million barrels per day (bpd), according to the Nigerian National Petroleum Company Limited (NNPC Ltd.).
In collaboration with industry stakeholders, the NNPC has intensified efforts to boost crude oil output to meet the government’s production targets.
This increase is coming as the average price of Brent crude remained stable at around $81 per barrel, creating favorable conditions for substantial earnings. Calculations based on current production levels and exchange rates show that producing 1.8 million bpd at $81 per barrel could yield approximately $4.37 billion in monthly revenue, which translates to N6.99 trillion at an exchange rate of N1,600 per dollar.
NNPC’s Group Chief Executive Officer, Mele Kyari, announced the milestone during a recent Oil Production War Room meeting at NNPC headquarters in Abuja, attended by top officials, including Petroleum Resources Minister Heineken Lokpobiri. Kyari emphasized that the increased production aligns with the Federal Government’s 2024 budget projections and long-term economic goals.
Chief Production War Room Officer Lawal Musa highlighted that the collaboration between the NNPC, security agencies, and local communities had been crucial to achieving the 1.8 million bpd level. The goal is now set to reach 2 million bpd by the end of the year, a target the NNPC is optimistic about achieving given the current momentum and security improvements in oil-producing regions.
Minister Lokpobiri commended the NNPC for achieving this production feat, describing it as a “remarkable milestone.” He expressed confidence that NNPC Ltd could not only meet but exceed the two million bpd target, further enhancing Nigeria’s revenue prospects.
The Chairman of the NNPC Board, Chief Pius Akinyelure, reinforced the board’s commitment to furthering this progress, urging the management and staff to pursue even greater achievements in the oil and gas sector. Dr. Paul Bebenimibo, spokesperson for Tantita Security Services Nigeria Limited, one of the private security agencies involved, confirmed the peaceful and secure environment in the Niger Delta as key to the production surge, assuring that further measures are in place to sustain and even increase output.
The drive to reach two million bpd underscores NNPC’s dedication to stabilizing and expanding oil production, with significant implications for Nigeria’s fiscal health and overall economic stability.
Oil and gas
Governor Ododo Seeks Federal Collaboration to Boost Oil Exploration in Kogi State
Kogi State Governor Ahmed Usman Ododo has called for enhanced cooperation between the state and the federal government to accelerate investment in oil exploration within Kogi State.
Governor Ododo made this appeal during a visit to Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), in Abuja on Thursday.
Special Adviser on Media to the Governor, Ismaila Isah quoted him to have reiterated his administration’s commitment to creating a favorable environment for investors, emphasizing the state’s readiness to work closely with the federal government.
He underscored the importance of fast-tracking oil exploration in Kogi in line with President Bola Ahmed Tinubu’s vision to expand exploration in Nigeria’s frontier basins.
Responding to the governor’s call, Senator Lokpobiri reaffirmed Kogi’s status as an oil-producing state and pledged the federal government’s commitment to attract investment to tap into the state’s vast oil resources. He highlighted the mandate of the Petroleum Industry Act (PIA), which tasks the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) with exploring frontier basins.
He assured that the government is ready to deploy funds for further exploration in Kogi.
Senator Lokpobiri also commended Governor Ododo for his leadership and strides in governance, noting that these efforts will be key in attracting and sustaining investment in the state.
Kogi State became the first oil-producing state in Northern Nigeria in 2022 following the federal government’s confirmation of oil discoveries in commercial quantities.
Oil and gas
We will soon unravel shady Issues in the Petroleum Sector, Senator Kawu vows
As the newly appointed chairman of the Senate Committee on Petroleum Downstream, Senator Sumaila Kawu has promised to tackle the persistent lack of transparency in Nigeria’s petroleum industry, which he likens to a “cabal.”
Kawu was appointed as chairman of the Committee following the demise of Senator Ifeanyi Uba who represented Anambra South who held sway as the chairman of the committee
Speaking to newsmen on Wednesday at the National Assembly, Kawu detailed his plans to shed light on the sector’s operations and engage the public in meaningful dialogue.
With rising fuel prices impacting Nigerians daily, Kawu emphasized the urgent need for clarity and accountability within the industry. “Our first step will be to study the current situation and gather information from relevant agencies,” he stated.
He highlighted the importance of holding public hearings, which will allow citizens to voice their concerns and experiences directly.
Kawu’s committee will focus specifically on reviewing contracts awarded by previous administrations and overseeing the current contracts for refinery repairs.
By scrutinizing the agreements, Kawu targets to expose any irregularities and ensure that funds are being used effectively.
He remarked, “We need to ask the hard questions and hold a public hearing to allow Nigerians to express their views.”
In his commitment to transparency, Kawu detailed his plans to engage with stakeholders, including the Nigerian National Petroleum Corporation (NNPC) and refinery operators, to understand the barriers to efficient production and accountability.
According to him, the recent visits to the refineries have given course fir concerns about unmet production timelines, prompting a call for a more rigorous evaluation of the situation.
Kawu’s focus on transparency is not only about identifying issues but also about fostering a culture of openness within the sector.
He promise to use the committee to dismantle the “cabal-like” operations that have characterized the industry, ensuring that decision-making processes are accessible and understandable to the public.
Senator Kawu expressed determination to implement measures that will stabilize the petroleum sector and address the legitimate concerns of Nigerians.
By prioritizing transparency and public engagement, he expressed the hope to restore confidence in the management of Nigeria’s petroleum resources.
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