Why NNPCL Deserves Commendation In A Turbulent Year
By Sani Mohammed
As 2024 draws to a close, the Nigerian oil industry stands at a crucial moment. Amid the tumult of the past year, marked by the challenges of PMS (Premium Motor Spirit) supply, fluctuating importation rates, and the arrival of new refineries, the Nigerian National Petroleum Corporation Limited (NNPCL) has demonstrated resilience, innovation, and a vision for a stronger, more self-sufficient oil sector. Under the stewardship of Mr. Mele Kyari, NNPCL has navigated the stormy waters of the industry with remarkable dexterity, ensuring that despite significant challenges, the country’s oil sector is headed in a new direction.
One of the most pressing concerns this year has been the supply and importation of PMS. With the soaring demand for fuel and the complexity of ensuring uninterrupted supply, NNPCL has consistently stepped up to the plate, overcoming logistical challenges and making strategic decisions to stabilize the market. Despite the occasional turbulence, NNPCL’s leadership under Mr. Kyari has kept the ship steady, ensuring that the Nigerian public has access to essential petroleum products even in the face of supply difficulties.
The arrival of both private and government-owned refineries this year signals a new chapter for Nigeria’s oil sector. Chief among these milestones is the much-anticipated Dangote Refinery.
The private sector’s entry into refining has brought with it a wave of optimism. It is heartening to note that Dangote Refinery is now well-positioned to produce and supply PMS locally, marking a significant step toward reducing Nigeria’s dependence on imported fuel. The refinery’s ability to produce at scale is a confirmation of the strategic partnerships NNPCL has fostered with key stakeholders, which have supported the refinery’s construction, operation, and eventual integration into the Nigerian market.
Equally impressive is the revival of the Port Harcourt Refinery, which had been moribund for several years. Under the leadership of NNPCL and in close collaboration with the federal government, the refinery has now come on stream, contributing to Nigeria’s refining capacity. This revival is a major accomplishment and a direct result of the forward-thinking approach NNPCL has adopted in recent years to rehabilitate and upgrade the nation’s refineries.
At the heart of these achievements lies the crucial support of President Bola Tinubu’s administration. Through landmark policy decisions, particularly the supply of crude oil to local refiners with payment in naira, the federal government has enabled NNPCL and private players like Dangote to thrive. This decision not only strengthens the local economy but also ensures that Nigeria’s oil industry remains less susceptible to global currency fluctuations. It is a policy move that promises long-term benefits for the sector and for Nigerians, particularly in terms of stability in the supply and pricing of petroleum products.
Another notable aspect of NNPCL’s performance this year is the maturity with which it has handled the complexities of the evolving industry. The cooperation by the NNPCL with the Dangote Refinery, despite provocations, has been a model of promoting partnership between public and private sectors. The relationship being promoted by the NNPCL leadership is promoting a spirit of collaboration rather than confrontation. This constructive approach is what Nigerians need to see more of, a healthy, competitive atmosphere where both government-owned and private refineries can coexist and contribute to a stable, affordable supply of PMS.
However, it is disheartening to see occasional public statements that threaten the fragile alliance between NNPCL and Dangote Refinery. As two key players in Nigeria’s energy sector, NNPCL and Dangote Refinery should prioritize amicable, professional dialogue over public castigation. Both organizations are strategic partners in the national effort to ensure energy security and should continue working together towards the common goal of a sustainable, competitive, and consumer-friendly petroleum market.
Looking to the future, there is hope that the ongoing efforts to revamp other government refineries will bear fruit. NNPCL has made it clear that it is committed to expanding Nigeria’s refining capacity, which is critical for long-term stability and self-sufficiency. By encouraging the development of more private refineries, NNPCL is promoting the an environment where healthy competition can drive down fuel prices, benefiting ordinary Nigerians.
In the year ahead, there is cautious optimism that the downward trend in PMS prices will continue, as more refineries come on stream and production capacity increases. With the support of President Tinubu’s policies, and the continued professionalism of NNPCL’s leadership, Nigerians can look forward to a steady, sustainable supply of petroleum products.
Ultimately, the key to a prosperous future lies in unity. The oil sector’s progress hinges not just on technological advancements and policy decisions, but on the strength of collaboration, between the government and the private sector, between NNPCL and other key players in the industry. The challenges of 2024 have shown that with the right leadership and a commitment to working together, Nigeria can overcome even the most difficult hurdles.
As we look forward to a new year, let us commend the NNPCL for its unflagging efforts and resilience. The road ahead is long, but with continued partnerships, innovation, and strategic policy decisions, Nigeria’s oil sector can emerge stronger and more sustainable for future generations.
