In a meeting with the management of the Nigerian National Petroleum Corporation Limited (NNPCL), led by the Group Managing Director, Mr. Mele Kyari, in Abuja on Thursday, Speaker Abbas recommended the privatization of the country’s oil refineries for optimal functionality. He expressed concern over the state of the refineries, describing it as shameful and highlighted the significant expenditure on salaries and allowances with little output.
Abbas emphasized the need for multi-dimensional uses of the refineries, suggesting that privatization could lead to increased efficiency. He urged the NNPCL to consider privatization as a strategic move to compete with upcoming refineries, especially with the impending operation of the Dangote Refinery.
“The inadequacies will become manifest as soon as Dangote refinery comes on board because the competition will be there, and inefficiencies of the refineries will become more naked. I want you to put it as part of your cardinal objectives; let us find ways to privatize our refineries so that they can be active, so that in the near future, they will be able to compete with new refineries that will come up,” Abbas stated.
He acknowledged the NNPCL’s crucial role in Nigeria’s economic development and assured the House of Representatives’ commitment to supporting the company. Abbas also expressed the House’s concern about oil theft, which is impacting revenue, forex availability, and causing inflation. The House has established a special committee on oil theft to address this issue.
In response, Mele Kyari, the Group Managing Director of NNPCL, provided assurance that all refineries would be fully operational by the end of 2024, making Nigeria a net exporter of petroleum products. Kyari attributed past inefficiencies to subsidies and stated that the removal of subsidies was attracting private sector investments. He outlined a timeline for the rehabilitation of the Port Harcourt, Warri, and Kaduna refineries.
Kyari also highlighted the company’s commitment to transparency, noting that financial statements from 2018 to the present are now in the public domain. He projected government revenue from the company to reach N4.5 trillion by the end of 2023, aligning with the objectives of the Petroleum Industry Act. Additionally, Kyari assured the public of a robust supply plan, ensuring an adequate fuel supply during the Christmas season and beyond, with no room for disruptions.