‘Refurbished Refineries Won’t Lead to Cheaper Petrol,’ Says NNPC CEO to National Assembly

In a recent appearance before the National Assembly Joint Committee on Appropriations, Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), addressed the committee during the 2024 budget defense for the NNPCL. He clarified that the primary objective behind the refurbishment of the country’s refineries was not necessarily to reduce fuel prices, contrary to the hopes of many Nigerians.

During the committee session, Kyari emphasized that while a reduction in petrol prices could potentially occur, it was not the main goal of the refineries’ revamping. He also underscored the significant financial contributions made by the company, noting that it had generated N4.45 trillion in direct revenue through taxes, royalties, and dividends, as well as paid N406 billion as dividends to the federal federation account in July.

In a separate committee meeting earlier in the week, the Chairman of the Senate Appropriation Committee, Solomon Adeola, instructed both Kyari and the Executive Secretary of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to appear before the committee within 24 hours. Their appearance was necessary to provide a list of all individual companies operating with Oil Mining Leases (OML) in Nigeria, along with the total production output approved daily, in light of concerns that some of the revenues required to drive the 2024 budget were attributed to the NNPCL.

It is evident from the discussions at the National Assembly that the functionality of Nigeria’s refineries does not guarantee a reduction in petrol prices. The focus appears to be on the overall contribution of the refineries and the NNPCL to the country’s economy. While this may be disappointing news for many hoping for cheaper fuel, the financial impact of the NNPCL’s operations cannot be overlooked.

As the company continues to play a pivotal role in Nigeria’s oil and gas sector, it is essential to understand the broader implications of its activities. With billions of naira in revenue and dividends, the NNPCL remains a key player in the country’s economic landscape.

The discussions at the National Assembly shed light on the complexities of the oil and gas industry and the various factors that influence petrol prices. Furthermore, it underscores the importance of transparent and constructive dialogue between government entities and regulatory bodies to address critical issues that impact the economy and the wellbeing of Nigerian citizens.

In conclusion, while the refurbishment of refineries may not directly lead to cheaper petrol prices, the contributions of the NNPCL to the national economy are substantial and deserving of scrutiny. The insights provided during the committee’s sessions underscore the multifaceted nature of the energy sector, emphasizing the need for comprehensive strategies to address challenges and optimize opportunities.