Minister clears air, addresses reported claims of directing NNPC to stop refinery operations

• The state minister of petroleum resources (Oil) said he did not issue the directive to the NNPCL to stop running its refineries
• The explanation came in response to claim that the company was instructed to concentrate on buying stock in other refineries
• The minister said this does not reflect his role as Minister in charge of the oil industry nor the federal government’s perspective

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Heineken Lokpobiri, the State Minister of Petroleum Resources (Oil), has stated that he did not give the Nigerian National Petroleum Company Limited (NNPCL) the order to cease operating its refineries.

Minister of petroleum resources (Oil) has stated that he did not give the NNPCL the order to cease operating its refineries. Photo Credit: Heineken Lokpobiri
Source: Getty Images

The justification was given in response to claims that the business was told to focus on acquiring shares in other refineries. At a Lagos event, Engr. Kamoru Busari, Director of Upstream at the Ministry of Petroleum Resources, made this statement on behalf of the minister.

Legit.ng earlier reported that Heineken Lokpobiri, the minister recommended that the Nigerian National Petroleum Company Limited invest in regional refineries rather than operating government-owned ones.

Lokpobiri stated this at the inaugural meeting of the Crude Oil Refineries Owners Association of Nigeria in Lagos on Tuesday, October 8, 2024.

In his speech, the oil minister stated that the federal government intends to encourage the national oil firm to acquire shares in the planned and existing private refineries instead of operating them.

How the minister reacted

However, the minister stated in a ChannelsTV report.

“My attention has been drawn to statements made by Engr. Kamoru Busari, Director of Upstream in the Ministry of Petroleum Resources, who represented me at a recent conference in Lagos.“I wish to categorically state that the claim that I directed the Nigerian National Petroleum Company Limited (NNPCL) to stop running its own refineries and focus solely on equity participation in other refineries is false. This does not represent my position as Minister overseeing the oil sector, nor does it reflect the stance of the Federal Government.“It is important to clarify that NNPCL is a company governed under the Companies and Allied Matters Act (CAMA), with a functional board and management. The Ministry of Petroleum Resources does not control or run NNPCL, as it operates independently like any corporate entity.“The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining. We encourage companies, including NNPCL, to operate independently, following global best practices. While we provide strategic guidance, we do not interfere directly in the operations of these companies.

Why Dangote cannot crash fuel price

Legit.ng reported that an expert in the oil and gas industry have asked the Nigerian Midstream and Downstream Petroleum Regulatory Authority to resist pressure, arguing that the country was not ready to stop importing refined petroleum products.

This came after the NMDPRA Chief Executive, Farouk Ahmed, made accusations that the Dangote refinery wanted him to stop granting licenses for petrol imports, which prompted the experts to make this statement.

According to Ahmed, he turned down the request to prevent monopolies and guarantee national energy security.

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Source: Legit.ng