*The Nigerian National Petroleum Company (NNPC) Limited stresses the importance of full deregulation of the downstream sector of the oil and gas industry to encourage the establishment of more modular and condensate refineries in the country

Isola Moses | ConsumerConnect

The Nigerian National Petroleum Company (NNPC) Limited has restated the importance of full deregulation of the downstream sector of the oil and gas industry to boost the country’s domestic refining capacity.

ConsumerConnect reports Mr. Mustapha Yakubu, Group Executive Director (GED), Refining at NNPC, said this during a panel session at the Nigeria International Energy Summit (NIES) holding in Abuja, FCT.

Yakubu, in his address at this year’s conference with the theme: “Revitalising the Industry: Future Fuels and Energy Transition”, stressed that full deregulation of the downstream sector would encourage the establishment of more modular and condensate refineries in the country.

The Company’s GED Refining also noted that NNPC has the mandate to protect Nigeria’s energy security, and would continue to support efforts geared towards adding value to the country’s crude oil production.

Yakubu further stated: “We believe that there is need to improve our domestic refining capacity.

“That is why the NNPC is embarking on total rehabilitation of our four refineries and not just the usual Turn Around Maintenance.

“We are going to have locally refined products after the completion of the rehabilitation.”

He said: “We also have the Dangote Refinery coming up in Lagos while the Waltersmith Refinery in Imo is already in operations.

“Other modular and condensates refineries are coming up, and NNPC is supporting private investors in establishing them.”

The NNPC Group Executive Director, therefore, appealed to Nigerian consumers to show understanding with the Company due to the lingering petrol scarcity across the country.

Efforts are being made to resolve the energy issue, he added.

In his comment, Mr. Tunji Oyebanji, Managing Director of 11 Plc, said the postponement of the full deregulation of the downstream sector was a huge setback to the industry.

Oyebanji as well said liberalisation of the sector would enable investors across the value chain to have adequate returns on investments (ROI), which he noted is the basic goal of the Petroleum Industry Act (PIA) 2021.

Mr. Huub Stokman, Chief Executive of OVH Energy Marketing Limited, said increasing Nigeria’s domestic refining capacity would change the country’s economic landscape for the better.

The current challenge with the scarcity of petrol is a clear indication that Nigeria needs a good emergency plan, going forward.

Mr. Emmanuel Omuojine, Executive Director of Rainoil Limited, in his comment, stated that removing subsidy on petrol would add significant value to Nigeria’s foreign exchange (Forex) reserves on the macroeconomic level.

According to Omuojine, deregulation of the sector will boost competition, operational efficiency, mergers and acquisitions, increased incentives to invest, and capital investment inflow in the West African country.