*Says enough petrol available for yuletide, New Year
The Nigerian National Petroleum Company (NNPC) Limited is aiming to declare a profit of N2 trillion for its 2022 operations by the time the company’s Audited Financial Statements (AFS) are released.
This is as the company said it has already made a robust plan for the supply of petroleum products especially Premium Motor Spirit (PMS), also known as petrol, sufficient to last beyond the ember months and the new year festivities.
Group CEO of NNPC Limited, Mele Kyari, disclosed these when he led an NNPC Ltd. delegation on a courtesy visit to the Senate President, Senator Godswill Akpabio, at the National Assembly in Abuja, yesterday.
Kyari stated that with the passage of the PIA 2021, NNPC Limited’s profitability margins have significantly risen, growing from a loss position of N803 billion in 2018 to a profit position of N674 billion in 2021.
Kyari noted that NNPC Limited is targeting a profit increase of N2 trillion when the 2022 AFS are released, adding that since July this year, the company has started paying dividends to its shareholders.
He also said that the NNPC Limited is involved in the entire value-chain of the oil and gas business and controls about 30% of the nation’s petroleum downstream retail market.
“By the creation of the National Assembly, NNPC Limited is saddled with the responsibility of guaranteeing Nigeria’s energy security which is critical to national security. We have made a robust plan for the forthcoming end of the year festivities and beyond. We do not see any shortages in the petroleum products supply for the period,” the GCEO added.
While lauding the National Assembly for the critical role it played in the enactment of the Petroleum Industry Act (PIA) 2021, Kyari said that this legislative endeavour had given birth to a new commercially oriented National Oil Company (NOC) that is governed by the Company & Allied Matters Act (CAMA) principles.
While identifying crude oil theft and pipeline vandalism as major challenges to the company’s business, Kyari said the recent collaboration with the nation’s security services as well as third-party security contractors have been yielding results, mostly in the area of increased crude oil production.
The GCEO said NNPC Ltd. is investing in several gas and power projects across the country, aimed at supporting the federal government’s power generation and industrialisation aspirations.
He further assured that NNPC Ltd. is working assiduously to revamp local refining of petroleum products and collaborating with indigenous refiners to ensure that Nigeria becomes a net exporter of petroleum products.
In his response, the Senate President, Godswill Akpabio assured the GCEO of the 10th Senate’s support, saying that the Nigerian Parliament appreciates the Kyar-led management for its commitment to ensuring robust petroleum products supply during the yuletide period.
“Nigerians always want to hear good news. We are glad that you have made robust plans to provide sufficient products supply this coming festive period and beyond,” Akpabio stated.
The Senate President also lauded the rehabilitation of the nation’s three refineries, saying that their restreaming will cause a multiplier effect on Nigeria’s economy, in line with this administration’s Renewed Hope Agenda,” Akpabio observed.
Spokesman of the NNPC, Femi Soneye, had earlier confirmed that the petrol supply, during the yuletide, will be unhindered because there is adequate stakeholder cooperation. Soneye said with what is available, even if no import is placed the country will not witness disruption or gap in supply.
He explained that, what appears to create vehicular queue at filling stations mostly in Abuja is pump price differentials which is now going down.
According to him, some marketers who imported at higher prices have adjusted their pumps to recover costs but the NNPC which has assumed the role to ensure steady petrol supply is taking the burden off the public.
NNPC’s proactive measure is to guard against any hiccups that may arise in the failure of Port Harcourt refinery coming back to operations in December.
Our correspondent reports that, though the NNPC operates as a commercial entity whose operation is driven by profit consideration, the Petroleum Industry Act (PIA), places enormous responsibility on it to ensure energy security at all times.
Reports said the federal government is about resolving challenges of inaccessibility of foreign exchange that has prevented marketers from importation of products. “There are ongoing consultations by relevant Ministries and the Central Bank Of Nigeria, CBN, and from every indication Forex availability for products importation would be tidied up by the second week in December.” our source confirmed.
Though officials of the NNPC could not respond to the issue of price disparity among marketers, finding shows that, in Abuja in particular, motorists buy at different prices which, it was learnt, is due to import price disparity by marketers who had sourced forex from parallel market sources.
Confirming our findings, the national president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Elder Chinedu Okoronkwo, said flow of products has been smooth and that there is overwhelming evidence of availability of petrol.
Okoronkwo said his members across the entire geopolitical zones have unhindered access to products but noted that prices would not be uniform largely due to haulage costs. He said coastal areas may suffer a price surge because of poor infrastructure and proximity of depot facilities.
Recall that the minister of State for Petroleum Resources, Heineken Lokpobiri has assured that the Port Harcourt refinery will be ready by December 2023.
According to Lokpobiri, “The federal government has reiterated its commitment to ending petroleum product importation soon, as efforts are being redoubled to restore the nation’s local refining capacity.
Lokpobiri, was quoted as saying this during an inspection tour of the rehabilitation work progress at the Port Harcourt Refining Company (PHRC) Ltd. plant, in Port Harcourt.
The minister, who was in the company of his counterpart, the minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo; Permanent Secretary, Federal Ministry of Petroleum Resources, Ambassador Gabriel T. Aduda, and the group CEO, NNPC Ltd., Mr. Mele Kyari, said considering the level of progress recorded in the PHRC rehabilitation project, the plant will come back on stream by December this year.
“Our objective in coming here today is to ensure that in the next few years, Nigeria stops fuel importation from what we have seen here today.
“Port Harcourt Refinery will come on board by the end of the year, Warri will come on stream by the end of the first quarter of next year, and Kaduna will also come on board towards the end of next year. If you add that to the Dangote Refinery, we will be able to stop fuel importation, and Nigerians will enjoy the full benefits of deregulation,” the minister assured.
“The Minister also said he was satisfied with the ongoing rehabilitation work at the Port Harcourt refinery, noting that once all the refineries are back on stream, Nigerians will enjoy a better supply of petroleum products, and foreign exchange will be domesticated, leading to an improved economy.
During the visit also, the group CEO, of NNPC Ltd., Mr. Mele Kyari, said bringing back the refineries to their optimal levels is a national aspiration, and the Company remains focused on delivering that.
“We are aware of our nation’s challenges in terms of fuel supply. But we are not here to give excuses. We are focused on delivering this rehabilitation project, our two other refineries, and all other investments towards revamping the nation’s refining capacity. We are hopeful that in 2024, this country will be a net exporter of petroleum products,” Kyari stated.
Also speaking, the Minister of State for Petroleum (Gas), Hon. Ekperikpe Ekpo said: “We are here to go into the field. Yesterday was the era of subsidies. Today, we don’t have subsidies. Today, people are in a desperate situation to heave a sigh of relief; and see how to live. You all know that petrol is very vital to our economy. All hands must be on deck to ensure that the refineries are working,” he stated.
During the visit, the two Ministers also participated in the Refineries’ Rehabilitation Steering Committee meeting and held a meeting with the refinery’s Engineering, Procurement & Construction (EPC) Contractors.
