“We Request NNPC”: NEITI Speaks on Completing Kaduna Refinery, Port Harcourt Refinery
- NEITI has recommended that NNPCL accelerate the ongoing rehabilitation of the Kaduna Refinery and the Phase 2 Port Harcourt Refinery
- It commended NNPCL for the successful completion of the first phase of the Port Harcourt Refinery rehabilitation project and the gradual reopening of the Warri Refinery
- According to NEITI, these accomplishments are significant milestones in the right direction, as Nigeria has historically relied on petroleum imports
Legit.ng journalist Zainab Iwayemi has 5-year-experience covering the Economy, Technology, and Capital Market.
The Nigerian National Petroleum Company Limited (NNPCL) has been advised by the Nigerian Extractive Industries Transparency Initiative (NEITI) to expedite the current restoration of the Kaduna Refinery and Phase two Port Harcourt Refinery Company Limited.
Source: UGC
The call was made by the watchdog group in a release issued by Obiageli Onuorah, Acting Director of Communication & Stakeholders Management.
“We request the NNPC to expedite action on the second phase of the Port Harcourt Refinery and the ongoing rehabilitation of the Kaduna refinery. This should be followed closely with the restoration of the phase 1 of the Port Harcourt refinery to optimal capacity in the ongoing rehabilitation efforts”, said NEITI.
It praised NNPCL for the initial phase of the Port Harcourt Refinery rehabilitation project's successful conclusion and the Warri Refinery's gradual restart of operations.
Nigeria has long been dependent on petroleum imports, and these achievements, according to NEITI, are important steps in the right direction.
The statement emphasised that the operationalization of these refineries is a significant step in the direction of economic sustainability and energy self-sufficiency, The Nation reported.
The statement reads in part:
“By reducing the staggering costs associated with fuel importation, this milestone will positively impact Nigeria’s foreign exchange reserves and create a ripple effect across key sectors of the economy.
“NEITI acknowledges that the revitalisation of the Port Harcourt and Warri Refineries has the potential to enhance energy security, create jobs, stimulate local industries, and free up critical funds that can be redirected towards national priorities like health, education, and infrastructure.”
“You will recall that NEITI through its Industry Reports for the Oil and Gas 2023 released recently disclosed that between 2006-2023 (in 18 years), a total of N15.87 Trillion has been expended as under recovery through price differentials (Subsidy) with 2022 recording the highest sum of N4.714 Trillion.
“2022 also recorded the highest importation of PMS put at 23.54 Billion litres, while 2017 recorded the lowest import volumes of 16.88 billion litres. Furthermore.
“Between 2022 and 2023, importation volumes declined by 3.25 billion litres (14%) from 23.54 billion litres in 2022 to 20.28 billion litres in 2023.
“This is attributed to the announcement of the removal of fuel subsidy.
NEITI is thrilled that the substantial sums spent on subsidies will now be available to promote poverty alleviation, national development, and the continuous reconstruction of the nation's infrastructure, thanks to the ongoing efforts to restart the refineries.
Marketers Give Conditions For Petrol Price Crash
Legit.ng reported that oil marketers have expressed hope about renovating Nigeria’s 21 depots owned by the Nigerian National Petroleum Company Limited (NNPC) as the Port Harcourt and Warri refineries begin operations.
Despite NNPC’s promise of revamping the depots, dealers in the petroleum industry said it is critical to expedite the repair of the facilities to boost the gains of the refineries.
The marketers asked the state oil company to take steps to restore the dormant fuel depots nationwide.
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Source: Legit.ng
