The federal government is set to support marketers in establishing Compressed Natural Gas (CNG) pumps at filling stations across Nigeria, according to minister of state for Petroleum Resources, Heineken Lokpobiri.
Speaking in Abuja during a meeting with the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Lokpobiri, also clarified that the Naira-for-Crude deal between NNPC Limited and Dangote Refinery remains intact and has not been canceled.
Lokpobiri noted that the establishment of CNG pumps is crucial for expanding consumer options and reducing dependence on petrol.
He stated, “We believe that any support that could be needed from government to be able to actualise that rapid expansion of distribution outlets for CNG is something that we’d be very, very glad to partner with you.”
Lokpobiri emphasised the government’s commitment to enhancing energy accessibility and addressing the ongoing energy challenges faced by Nigerians.
On the heels of the ongoing controversy surrounding the naira for crude deal which commenced in October 2024, Heineken Lokpobiri, minister of petroleum resources (oil) has clarified that the deal has not been called by the government.
Under the naira for crude deal, the Nigerian National Petroleum Company Limited (NNPCL) has been made to supply domestic refineries, including Dangote refinery with crude oil with payment made in Naira.
However, the company responding to news reports of the termination of the contract on monday, announced that the contract for the sale of crude oil in Naira was structured as a six-month agreement and subject to availability, adding that the contract is expected to expire at the end of March 2025.
According to him, the dispute has always been about the exchange rate which is not determined by the government. “It is purely a private sector issue. If you are upstream and you have a modular refinery next to you and the man wants to buy crude, it’s between the two of you that would negotiate and agree on what price. And the person may decide to pay you either in dollars or in Naira.
“Government is not canceling it. What was taken to council was a pilot scheme where they said NNPC should be selling crude in Naira to Dangote Refinery. We’ve always encouraged people to buy crude in whatever currency. Even if you buy in Naira, it’s going to be at a prevailing exchange rate. And I do know that people have been buying crude to refine in their respective local refineries in Naira.
“We’ve always done that. So it is not true that the scheme is canceled. Not at all. That one that was taken to FEC was a scheme specifically for Dangote Refinery and they said orders will also follow. And that was why that one didn’t include the crude for Naira from IOCs and other operators. It was basically only an NNPC.
“But that doesn’t mean that Dangote doesn’t buy crude from other operators.
They buy. But that Naira for the crude scheme was basically between NNPC and Dangote Refinery,” he said.
Lokpobiri, speaking further, explained that the NNPC as a national oil company take decisions that they feel is best for Nigeria in the industry with limited government interference.
“That doesn’t mean that we can’t call them to order from time to time because they are a national oil company. But the point I’m making here is NNPC has a measure of independence now so that they can make proper business decisions that will be best for Nigerians,” he added.
In his remarks, Billy Gillis-Harry, president of PETROAN, said that while the sector is recording growth in crude production, importation of products should not be ruled out if the country must compete favorably in a fully liberalised economy where every source of petroleum product is allowed.
He advocated that while refineries are encouraged to work, importation also should be considered as one of our sources of getting product.
This he said will drive healthy competition and guarantee that the domestic prices are not above import parity thereby ensuring the best possible affordable product with sustainability of petroleum products.
Gillis-Harry, also called for the inclusion of PETROAN representatives on the board of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). This request aims to enhance grassroots participation in policy formation and decision-making processes that affect the downstream sector.
Dr. Gillis-Harry acknowledged the leadership of Lokpobiri, the Honourable Minister of State for Petroleum Resources, praising his efforts in increasing Nigeria’s crude oil production to 1.8 million barrels per day and tackling issues such as oil theft. Under his tenure, significant investments have been attracted to the oil sector, and the establishment of the Petroleum Industry Stakeholders Forum has fostered collaboration among industry players.
Gillis-Harry also outlined several key demands for PETROAN as follows: Board Membership: A request for PETROAN to be appointed to the NMDPRA board to ensure that grassroots perspectives are included in regulatory discussions.
Permanent Allocation: He called for a permanent percentage allocation of petroleum products to PETROAN members to ensure consistent supply and business viability.
Instant Loading: The association seeks instant loading of petroleum products from depots upon payment to improve cash flow for retail outlets.
According to him, “To Benefit from the Local Refining of Petroleum Products. The benefits of the local refining of petroleum products are enormous. PETROAN supports the local refining of petroleum products and requests that local refineries be encouraged to continue sustained production of refined petroleum products.
“We advocate for multiplicity of petroleum products to supply source. Dangote Refinery is doing well and NNPC is also doing well and coming up. Other modular refineries like Azikel Refinery that’s coming up in Bayelsa to do 25,000 barrels per day are coming up and we are very, very happy about that development.
“And also importation of products should no longer be ruled out because we want to be able to compete favorably in a fully liberalised economy where every source of petroleum product is allowed and we as the most critical downstream grassroots participants in the industry should be able to tell you sir, when one product is very good and when one product is affordable and how it can work.
“So we want to advocate that refineries should work and importation also should be considered as one of our sources of getting product. This will drive healthy competition and guarantee that our domestic prices will not be above import parity thereby ensuring the best possible affordable product with sustainability of petroleum products.”
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