The Chairman of the Independent Petroleum Producer Group Mr. Abdulrazaq Isa has hailed the recent directives of the present administration of President Ahmed Tinubu directing the Ministry of Finance to immediately mandate Nigeria National Petroleum Corporation Limited (NNPCL) to commence sales of crude oil to domestic refineries in naira.

The Minister of Finance and Digital Economy Mr. Wale Edu recently in a press release disclosed that the NNPC has been mandated to commence sales of crude oil to domestic refineries in naira effective from October 1^st, 2024.

Commending this laudable gesture as a good step in the right direction was the Chairman of IPPG Mr. Abdulrazaq Isa while speaking at the inaugural CORAN Summit 2024 with the theme “Making Nigeria A Net Exporter Of Petroleum Products” stated that the current presidential directive will not only achieve the country aspiration of being a net producer of these products but will equally assume a major role in global energy scale.

“I must begin by applauding the government's new policy initiative to transform the domestic refinery sector for maximum socio-economic impact on our country. These policies are already laying a strong foundation for an enduring and enabling structure to make Nigeria a net exporter of petroleum products and ultimately a global energy leader.

“A long-time aspiration in making Nigeria a net exporter of petroleum products in a reality whose time has come as the private sector is now leading the charge of the refinery sector, “ Mr. Isa said 

In delivering his speech, the IPPG Chairman further stated that owing to this Presidential initiative, the government is no longer a major player in the refining sector as domestic refineries especially the upcoming Dangote refinery have taken over the major refining sector in the country thereby leveraging the major financial burden from the federal government.

“At this junction, I must recognize and especially commend Alhaji Aliko Dangote GCON for moving us closer to this aspiration of net exporter of petroleum products with the operational commencement of the game-changing transformative Dangote refinery. And I must commend other members of CORAN for the visionary and entrepreneurial spirit and working assiduously towards making Nigeria very independent,” He added. 

To sustain this great feat Mr. Isa opined that the present administration must ensure that the crude oil supply is made accessible, and available to all domestic refineries.

“Implementation of domestic crude supply obligation shall serve as an avenue to guarantee availability and reliability of feedstock to all domestic refineries from upstream sector on a willing seller, willing buyer basis in compliance to Petroleum Industry Act (PIA).

I use this opportunity to commend the government and the industry regulators the NUPRC and NDMPRA for their efforts in diligently implementing DSO policy,” Abdulrazaq posited.

Mr. Isa also foresees the presidential directive to NNPC to sell crude oil in naira as a significant step in the right direction in pricing and locating crude for domestic consumption in naira at a fixed exchange rate will guarantee that both the government and Nigerians benefit from petroleum products at the best possible values.

On Petroleum monitoring and border policy in checkmating the illicit smuggling of these products across the nation's border, the IPPG Chairman urged the government to enact strict border policies that will tighten the movement of petroleum products to neighboring countries illegally.

“owing to the potential price deferential that may arise as a result of the implementation of these policies we believe the in-country value retention drive must be greatly enhanced through effective border control by adopting advanced technology to check the illicit movement of petroleum products across our nation borders as this poses a major threat to our aspiration.

Our upstream sector must be urgently repositioned to deliver and support the aspiration. The current crude products of 1.35 million BPD have continued to pose an existential threat to our ability to provide feedstock for our domestic refineries,” He stated.

However, he emphasizes that Nigeria has no business importing crude oil to meet her domestic refinery feedstock owing to the level of hydrocarbon resources at her disposal. He asserted that IPPG has and will continue to clamor to address the underinvestment in oil and gas production, especially by unlocking the nation’s crude potential.

In unlocking the nation’s crude oil production level he made three important suggestions the present administration must achieve if the domestic refineries should sustain their daily feedstock.

“Concluding all pending IOC divestment transactions diligently and swiftly to derive upstream value from these transactions for the sack of our national interest. Enhancement of security across the Niger Delta to ensure a conducive operating environment and stop assets vandalization and Community unrest. Upgrading expanding the industrial infrastructural base to enhance efficiency and reliability of product supply for both domestic and for the export market,” He highlighted.

He concluded that addressing the above key areas may unlock incremental production of 500,000 barrels of oil per day and 1.5mscf of gas per day in the short and medium term.