CHIGOZIE AMADI
The Minister of State, Petroleum Resources (Oil), Senator Heineken Lokpobiri, yesterday convened the Nigerian oil sector’s maiden Industry Stakeholders’ Forum, to ensure the alignment of policies, regulations and activities in the sector.
Speaking at the event which took place in Abuja, the minister who hosted key industry players, noted that just like the bankers’ committee, the capital market committee, among others, there was the need to establish a forum where oil sector challenges are discussed and solutions proffered.
He explained that the committee will decide when to meet, whether quarterly or bi-monthly, stressing that there was the need to sort out all the overlapping functions, including multiple taxes, levies and even agree on the need to stop the short-changing of customers at filling stations.
“We have a finance committee that talks about banking issues, and what everybody is doing in that sector. You also have a similar committee in the capital market, which is the capital market committee, where they sit together and form policies when there are some issues.
“ So, we felt that it’s a good thing going forward for us to bring all the leaders of the oil industry together. So that we can have a better oil industry, and take all that forward in the coming years. Now, we’re going to be meeting maybe on a quarterly basis, or bi-monthly, or whatever. We’re going to agree on that.
“ But the whole idea is to have a one-stop shop where all stakeholders will gather to address issues, concerns, or policy concerns, so that the oil industry will grow very fast the way we want it to be,” Lokpobiri stated.
With the deregulation of the downstream, the minister stated that fuel prices will eventually find their levels, explaining that what the government is concerned about now is quality of the fuels and their availability.
“As the crude price goes up, (fuel) price will go up and as it comes down, price will come down,” he maintained, adding that “what the government is more interested in is quality control. What the government is more interested in is availability. What the government is particularly interested in is dispensation of the right quantity.”
According to him, part of the challenges Nigeria faces is how to ramp up production, which it’s already doing.
“We’re not where we want to be, but we’re already getting there. The other challenge was availability of products…We’re also trying to address the issue of policy conflicts. Where you see one agency making a policy, there’ll be a conflict with another agency.
“We’re also trying to address whatever concerns people are talking about. Part of OPTS’ concern is that Nigeria has so many taxes and levies. Highest in the world. And these are issues that we want to sit down at a table to address,” he explained.
Also speaking, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, said that the upstream sector experienced growth in the national oil and gas reserves by 1.45 per cent and 0.206 per cent respectively in 2024 compared with 2023 and that oil production rose by 26 per cent from April 2023 to November 2024.
“The active rig count increased from an average of eight in 2021 to 38 as at today representing 79 per cent growth. Also, with effective collaboration with the security agencies, the theft and deferment has reduced drastically by more than 40 per cent in the last year. The import of this is that it’s not all gloomy for the industry,” he said.
He also hinted that with Donald Trump in the saddle, the oil sector could see some revamp in contrast to renewable energy which is facing declines, describing it as good news for the Nigerian upstream sector.
“This gathering therefore is timely as the objective is to foster collaboration and team effort towards achieving the aspiration of the government. The 2025 budget is predicated on crude oil production of 2.062M barrels at $75 per barrel whereas our current production is averaging 1.7M barrels leaving a deficit of about 350,000 barrels to be bridged,” he added.
Komolafe listed the five-point agenda of the NUPRC this year as: Effective implementation of the 1m barrel production incremental initiatives and enhancing transparency of hydrocarbon measurement accuracy through the implementation of the metering and advance cargo regulations.
Others, he said, are digitalisation of upstream regulatory activities; interrogating and achieving optimum unit cost per barrel for increased federation revenue and conducting licensing bid round by implementing the drill or drop provisions of the PIA, 2021 to ensure that non-performing assets are revived.
In line with boosting Nigeria’s aspiration of becoming the energy hub of the continent, the commission, he said, through the National Data Repository (NDR) has provided a building to host the Africa Energy Bank (AEB) headquarters in Abuja.
In his remarks, the Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, said the organisation had taken careful measures to ensure consumer protection from exploitative tendencies and unwholesome practices by the sector participants.
“The development of CNG as a viable alternative to Petrol has been incentivised. The NMDPRA has supported the PCNGI which has over the last year, helped stimulate 186 new conversion centers increasing Nigeria’s conversion capacity by over 2500 per cent.
“These conversions alongside new buys have raised Nigeria Nigerian Gas Vehicles (NGV) population to an estimated 30-50,000 vehicles and trucks and it continues to grow daily.
“With over $400 million attracted for investment in 86 and 65 new daughters and mother stations under construction respectively, Nigeria refueling capacity has therefore risen from 20 to 56. The collaborative efforts of Presidential CNG Initiative, NMDPRA and Standard Organisation of Nigeria (SON) led to the development of standards and the Nigeria Gas Vehicle Monitoring System to ensure safety which is already in pilot phase, expected to be launched in 2025,” he stressed.
Others who spoke at the event included: The Managing Director, Nigerian National Petroleum Company Limited (NNPC) Retail, Huub Stokeman; National President of Petroleum Product Retail Outlet Owners Association (PETROAN), Dr. Billy Gillis-Harry; Chairman of Petroleum Technology Association of Nigeria (PETAN), Wole Ogunsanya, among others
