By Kabir Kabo Usman
Jhe current transformation of the Nigerian National Petroleum Company (NNPC) Plc from an obscure and hopeless state-owned company to a viable and reliable limited company is stirring interest for top-down discussions.
But in this millennium where civilization has superseded primitive norms, it was expected that discussions about whether or not a critical factor in the socio-economic development of society like NNPC Ltd performed objectively and not subjectively. . Opinions and suspicions are never facts.
As a Ph.D. holder in petroleum chemistry since 1988 from the University of Manchester in the United Kingdom, I salute the transparency and responsibility of the current managing director of NNPC Ltd, Dr Mele Kolo Kyari, after a careful review of his performance and background with probity and objectivity, thoroughly familiar with the nature and dynamics of the oil and gas industry, having been a consultant for over 20 years. Integrity pays but at a high price in the governance of a global sector like the one under discussion.
As I live near but far, I cannot sit idly by and watch my two respected brothers whom I hold in high regard, with a high degree of integrity, probity and patriotism make negative comments about stewardship of another brother in an important socio-economic public organization. It is no longer news that recently Governor of Kaduna State, Malam Nasiru El-Rufa’i, CON, and former Governor of the Central Bank of Nigeria (CBN), Malam Muhammadu Sunusi II, CON. , (aka Sanusi Lamido Sunusi) the former Emir of Kano, criticized the performance of NNPC PLC under Dr Kyari.
Everything discussed is mainly about real-time, online data that can be viewed and evaluated by everyone thanks to data protection law. In the said speech so far, there is a void due to lack of information. There is a lack of communication. I used the powers I had under data protection law to obtain the discord data in all three areas without any de facto barriers. This is what allows me to comment with foresight, foresight, and insight in a compelling, succinct, and reasoned way.
Searching for the truth allowed me to come across the NNPC Modular Refinery Policies – some refineries of which are currently operating in Akwa Ibom and are an example of success and progress so far. One such refinery that will be a beacon of NNPC’s refining policy is the gigantic Dangote Refinery.
The Dangote refinery, when operational, will produce 250,000 barrels per day to reduce our PMS imports by 33%. Some of the short, long term and everlasting benefits of the Dangote Refinery and Petrochemical Plant will save Nigeria at least $10 billion a year on imports; the plant’s ammonia component will produce 2.8 million tonnes of urea and generate its own electricity. The revitalization of the three existing refineries is underway.
All civil works on site are carried out by Nigerian companies; the plant will have an export value of $6 billion per year, which will increase Nigeria’s foreign exchange reserves by at least 40% of the current value on an annual basis.
Refined products to be produced at the plant will include propane, gasoline, jet fuel, diesel, kerosene, carbon black, polypropylene, polyethylene in the form of petrochemicals and pharmaceutical derivatives.
The United States Trade and Development Agency is supporting this project with 997 million dollars while NNPC PLC has acquired 20 to 25% of the shares of this company.
The strategic imperatives of diversifying from dirty energy to clean and cheaper energy to stop relying on PMS were also highlighted as government policy, such as the country’s commitment to zero carbon and carbon neutrality. recently signed by President Buhari at the Glasgow and Paris conventions. This will promote the three Ds agenda – decentralization, decarbonization and digitalization in the renewable energy sector to combat environmental degradation through pollution.
The progress of the Federal Government of Nigeria in providing rail networks that promote the movement of goods and services fits perfectly with the NNPC’s efforts to reduce burden and reliance on gasoline and diesel. All of these policies will ensure less reliance on our refineries while ensuring that Nigeria meets its international fuel and clean energy commitments through its renewable energy policy focused on solar, wind and biomass.
These are all good policies for getting out of oil dependence. NNPC PLC is finally moving the needle on dirty energy addiction. While the AKK project is on track to help pivot to using gas as a transitional energy source. NNPC’s future is no longer traditional oil and gas. Rather, it will be considered a forward-looking energy company under the Petroleum Industry Act (PIA) as it is envisioned.
A nagging issue raised by one of the commentators was that the NNPC had not paid a penny into the federation’s account, that “we live off taxes. It is TPP, royalties, income tax and VAT that keeps this country alive because the NNPC claims the subsidy took all the oil revenue. The PPT, NLNG, and NNLG taxes and benefits are contrary examples of this statement.
The other brother suggested that the government should be completely out of the oil and gas business, or that NNPC Ltd should be completely dissolved and unbundled like Petrobras – think Aramco, the oil company of the Kingdom of Saudi Arabia. So please think about PIA who took 20 years to get to the promised promised land.
There was also the allegation that the volume of our internal PMS consumption is inflated. Importing PMS is a very complex process with many stakeholders and actors. With the variability and complexity of thousands of kilometers of borders to countries where PMS are more expensive, the consumption indicators of many products are difficult to measure. You have to look at the price of pms in the area, which says a lot because Nigeria has the cheapest by far.
The government cannot ask you to subsidize the price of oil and ask you to return the money that has already been spent.
The impressive dashboard and data control center presented by NNPCL indicates a significant improvement so far in combating oil theft which is a nightmare for everyone in the sector. Everyone is on deck to tackle the issues with rigor and vigor because you all know what the CEO of the organization does tirelessly.
Advising the Federal Government to sell NNPC Plc shows that some people do not understand what PIA is. Grab a copy of the law for your perusal and return to the public gallery to say what you’ve learned.
On June 12, 2020, NNPC released its first audited financial statements after 44 years of operation. This may not be a feat for some, but it has drawn praise from the United States Department of State, where in its 2020 annual report it named the NNPC in Nigeria as the most transparent and most responsible among others.
Our oil sector is struggling with a decade-old disease. A temporary solution cannot be an option. It’s time to make some tough decisions, no matter how unpopular. We should all support the CEO of NNPC PLC who was recently honored by the President with OFR for his selfless service, commitment and implementation of his transformation agenda and his work on the roadmap that will take the organization to greater height.
He has now joined the league of respected Nigerians who have contributed to the progress of the nation. Other league members include His Excellency Malam Nasiru El-Rufa’i, CON., and His Royal Highness, Malam Muhammadu Sunusi II, CON.
Usman, PhD, former Managing Director of the Center for Management Development (CMD), writes from Abuja