A NEW ERA IN NNPCL
A fresh chapter of growth and profitability has set in, reckons Ademola Tajudeen
The Nigerian petroleum industry was a topsy-turvy turf until the passage of the industry governance Act. It restored order and a new chapter of profitability and growth. Mele Kyari, Nigerian National Petroleum Company Ltd. (NNPCL) boss, played a pivotal role in the transition process that transformed the state -owned oil corporation into a private limited entity.
Under Kyari, there has been steady supply of petroleum products to the nation amidst fuel subsidy removal. The fears raised about the unavailability of petroleum resources has been allayed with the effective distribution network that the NNPCL put in place.
The debt burden and inefficiency that plagued the corporation for years have gradually eased with the financial re-engineering piloted by the Czar of the NNPCL. This assured trajectory of profitability was reiterated recently when Kyari spoke at a book launch authored by the NNPCL former Chief Executive Officer, Prof. Billy Okoye. Kyari, who was the Chairman at the book launch said the corporation will never record losses again. The two books that were launched were “Dynamics of Petroleum Products Marketing” and “Insight into Crude Oil Marketing.”
Kyari who was represented by the NNPCL Chief Financial Officer, Alhaji Umar Aja, urged industry stakeholders and all Nigerians to acquire the books which among other things narrate how NNPCL under Kyari has weathered the turbulence in repositioning the corporation and how NNPCL ensures steady supply of Premium Motor Spirit (PMS) to Nigerians.
On landmark clauses in the PIA, particularly the mandate that the company must make profit directly into the federation account have revolutionised the oil sector. This marked a departure from the era of losses and opaqueness. The NNPCL boss insisted that with the mandate, the oil firm can never declare loss to Nigerians again. The oil company now eyes N4.5trillion revenue. He said, “We recommend these books not only to Nigerians but also to the international community so that they can learn from what Nigerians have gone through, and the struggles and the turbulence, the past and present management of NNPC has been going through and is going through just to keep your vehicles on the road.
“It is not an easy task. But it is a task which has been obligated on that company, especially now courtesy of the Petroleum Industry Act.
“Whatever we did as profit or loss in the past, is nobody’s business. But the Act has simply made it possible now that we can do it, but on the account of the federation. So we can never declare loss to Nigerians.”
He described the declaration as the commitment that the NNPC Chief Executive, Board, management and staff of NNPC have made to Nigerians.
The upstream and downstream sectors of the petroleum industry have experienced remarkable improvement following the innovation and pragmatic leadership of the NNPCL boss. Apart from meeting crude supply obligations to international trade partners, the company has also moved into refining of crude oil and downstream activities. Kyari disclosed that gone are the days when the state-owned oil firm was exporting crude oil and importing refined products.
He assured that before the end of 2024, Nigeria will start consuming its locally refined petrol from the 36 grades of crude oil the country is endowed with. His words: “The chief host has alluded to the inefficiencies of the past where we were literally sending crude outside and importing PMS.
“That trajectory will change this year. And Nigerians will not be buying petroleum products refined abroad but petroleum products refined locally.”
This assurance was premised on the recent overhaul of the nation’s petroleum refinery. He hinted this recently when he was addressing Journalists shortly after meeting with the Senator Ifeanyi Ubah, APC (Anambra-South)-led Senate Ad-hoc Committee on Turnaround Maintenance of the country’s four refineries. Kyari disclosed that the rehabilitation of the refinery had been completed, having passed its “completion mechanical” procedure.
He said, “The completion mechanical means that you are done with your rehabilitation work, now you are to test if this completion is okay.
“As for Warri refinery, we have also completed the mechanical works on it and it is undergoing the regulatory compliance processes that we are doing with our regulator.
“This also will be completed and it will be ready. “Kaduna will be ready by December. We have not reached that stage (of Port Harcourt and Warri) with Kaduna.”
Kyari explained that there were no challenges with the pipelines to deliver crude to the refineries, as the existing lines were fully pressurised to deliver crude.
“All crude lines are active and have actually delivered over 450,000 barrels into Port Harcourt refinery. We are confident of the integrity of it. Yes, there may be security issues, but also the government is responding to the situation, “he stated.
As the Port Harcourt refinery comes on stream, Warri refinery will follow and then Kaduna refinery. He was confident that by the end of 2024, Kaduna refinery will come into operation.
He said, “This is the commitment we are giving today and you can hold us accountable for this. In 2024, many of the initiatives including the rehabilitation of our refineries and also the efforts of small-scale refineries, and the upcoming Dangote refinery, will make Nigeria a net exporter of petroleum products in 2024.
“We will no longer be talking about fuel importation by the end of 2024. I am very optimistic that this will crystallise,” he said.
Nigerians definitely have reason to celebrate as they enter another phase of development as a nation. The path of honour and sustainable growth that we all crave in the petroleum sector is here under Kyari.
Tajudeen writes from FCT, Abuja
