Minister Lokpobiri Highlights Benefits of Downstream Oil Deregulation
Senator Heineken Lokpobiri asserts that the deregulation of Nigeria’s downstream oil sector, initiated by President Bola Tinubu, is yielding positive results. Emphasizing the pivotal role of petrol retailers, he pledged to enhance collaboration with PETROAN. Lokpobiri clarified the status of the naira-for-crude oil swap scheme, promoting the NNPC’s operational independence, and advocating for the importance of both local refining and imports to ensure a competitive market.
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources, asserted the positive outcomes of the President Bola Tinubu administration’s decision to fully deregulate Nigeria’s downstream oil sector. During a meeting with the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), he acknowledged the difficulty of this decision but maintained that it is beginning to yield benefits for the Nigerian populace.
Lokpobiri emphasized the critical role of petrol retailers, who serve approximately 90 percent of Nigerians who rely on fuel for energy generation. He expressed his commitment to collaborating with PETROAN to enhance service delivery. Notably, he recognized the association’s operations extending beyond Nigeria, providing fuel services to neighboring countries such as Chad, Niger, and Cameroon.
The Minister stated, “It was a very difficult decision to get the sector fully deregulated. It was something that no leader had the courage to do. But today, everybody can agree that we are getting the benefit of full deregulation.” He elaborated that prices in the deregulated market are stabilizing, paving the way for significant investment opportunities within the sector.
Looking ahead, Lokpobiri expressed enthusiasm for implementing Compressed Natural Gas (CNG) components at fuel stations, considering natural gas as the country’s transition fuel. He assured support from the government to facilitate the expansion of distribution outlets for CNG, aiming to optimize energy solutions for Nigerians.
In response to concerns from PETROAN’s leadership regarding a rumored end to the naira-for-crude oil swap scheme, Lokpobiri clarified that this pilot scheme remains operational. “Government is not cancelling it. What was taken to council was a pilot scheme, where they said they should be selling crude in Naira to Dangote refinery,” he explained, emphasizing the private sector’s involvement in crude purchasing agreements.
The Minister further described reforms under the Petroleum Industry Act (PIA), positioning the Nigerian National Petroleum Company Limited (NNPC) for enhanced operational independence similar to global oil giants like Petrobras and Aramco. This structure allows NNPC the latitude to make critical business decisions free from excessive governmental oversight, ultimately aiming to serve the best interests of Nigeria.
PETROAN’s President, Dr. Billy Gillis-Harry, commended Lokpobiri’s leadership and his notable contributions toward increasing crude oil production and combating oil theft. He proposed that a PETROAN representative be included on the board of the NMDPRA, advocating for diverse supply sources and local refining to optimize domestic oil product availability. He noted that both local production and imports are crucial for a competitive market, stating, “This will drive healthy competition and guarantee that our domestic prices will not be above import parity, thereby ensuring the best possible affordable products. “
Emphasizing collaboration between the government and private sector stakeholders, Lokpobiri and Gillis-Harry aim to shape a robust and dynamic oil industry in Nigeria that effectively serves the population while encouraging investment and competition.
In summary, Senator Heineken Lokpobiri’s statements indicate a commitment to ensuring that the recent deregulation of Nigeria’s downstream oil sector benefits citizens and foster investment. The engagement with PETROAN highlights the government’s intent to support retail fuel distribution and seek collaboration for further industry growth. The continued focus on local refining capabilities and market competition aims to stabilize fuel prices and enhance accessibility for all Nigerians.
Original Source: www.arise.tv
