NNPCL

By Hanniel Sebatie Noboh

On the morning of July 30, Vanguard newspaper published an editorial titled “30% Processing of Export Raw Materials”, offering its perspective on the recently passed Senate bill mandating that all raw materials exported from Nigeria must be processed locally by at least 30 per cent. This long-overdue legislation is a welcome development in Nigeria’s quest for economic diversification.

Nigeria remains one of the most naturally endowed nations in the world. With abundant resources such as limestone, gold, natural gas, and the globally coveted crude oil, our country boasts mineral wealth that many developed nations lack. In agriculture too, from rice and groundnuts in the North to cassava and palm oil in the South, Nigeria’s fertile soil continues to bless us with variety and abundance.

Yet, successive governments have, for decades, focused disproportionately on crude oil, neglecting other sectors, such as agriculture and manufacturing. As the Vanguard editorial rightly observed, even during economic downturns—when necessity should inspire reform—there has been little effort to diversify our export base.

This is why the passage of this bill marks a significant shift. By requiring at least 30 per cent local processing of all export-bound raw materials, Nigeria takes a substantial step towards value addition and economic transformation.

The advantages are manifold. First, processed goods typically command higher prices in global markets. Take cocoa, for instance—a ton of raw beans sells for far less than the same quantity processed into cocoa butter. This principle applies to most commodities: the more value added, the greater the earnings.

Second, enforcing the 30 per cent processing threshold will spur the development of local industries. More processing facilities will mean more jobs, improved infrastructure, and Nigeria’s transition from an exporter of raw materials to a player in the global manufacturing and semi-processed goods market. Even for domestic buyers, the availability of semi-processed inputs will reduce dependency on fully imported goods, lowering costs and supporting local production.

Additionally, the bill aligns with President Bola Tinubu’s vision of making agriculture more attractive to Nigerian youth. Many young people may not be drawn to traditional farming, but with the emergence of new processing plants, opportunities will abound in machine operations, logistics, quality control, and related fields.

However, as Vanguard also warned, the real challenge lies in implementation. Nigeria has no shortage of well-intentioned policies, but history shows that many fail at the execution stage. A lack of infrastructure, regulatory oversight, and transparency could undermine the promise of this bill. The risk of corruption—particularly in granting exemptions or failing to enforce compliance—must be proactively addressed.

The responsibility for enforcement rests with the Raw Materials Research and Development Council (RMRDC), which must ensure compliance with the 30 per cent benchmark and uphold quality standards. Any exporter who fails to meet the requirement will face a 15% surcharge on the export value of their raw materials. This is a strong disincentive, but only if enforced fairly and transparently.

In conclusion, while the bill is commendable, its success depends on rigorous implementation, strong political will, and effective institutional accountability. If executed effectively, it could be a game-changer for Nigeria’s economy. Like many Nigerians, I remain hopeful that this won’t become another forgotten policy but the beginning of a new era of industrial growth and self-reliance.

Hanniel Sebatie Noboh is a Mass Communication student at Nile University and an intern at PRNigeria. She can be reached via nobohhanniel@gmail.com.

By Uzair Adam

The Socio-Economic Rights and Accountability Project (SERAP) has taken legal action against the Nigerian National Petroleum Company Limited (NNPCL) over its failure to explain the whereabouts of N825 billion and $2.5 billion allegedly allocated for refinery rehabilitation and other oil-related revenues.

The lawsuit, filed last Friday at the Federal High Court in Lagos (Suit No. FHC/L/MISC/722/25), seeks a mandamus order compelling NNPCL to account for the missing funds. SERAP also wants the company to recover and remit the money into the Federation Account.

The group further requests that the court direct NNPCL to identify individuals responsible for the missing funds, surcharge them, and hand them over to appropriate anti-corruption agencies for investigation and prosecution.

SERAP’s action follows the revelations in the 2021 audited report by the Auditor-General of the Federation, published on November 27, 2024.

The report raised concerns about several unaccounted financial transactions involving the NNPCL.

Aliko Dangote, president of the Dangote Group, recently echoed similar concerns, suggesting that the NNPCL refineries may never work again, despite \$18 billion reportedly spent on them.

According to SERAP, the allegations point to gross violations of public trust and various legal obligations, including those enshrined in the Nigerian Constitution and international anti-corruption frameworks.

The suit details several financial discrepancies. Among them are over N82 billion deducted from crude oil sales for refinery repairs between 2020 and 2021, and more than N343 billion from domestic crude sales, reportedly for pipeline maintenance.

The Auditor-General fears these amounts may have been diverted and recommends their recovery.

Other flagged transactions include N83 billion from NNPC joint venture operations withdrawn from a suspense account, over N204 billion in unjustified deductions from oil royalties, and more than N3.7 billion paid to a company as a shortfall on PMS cargo sales.

The audit report also highlighted N28 billion in outstanding bridging allowances from NNPC retail, over N13.5 billion from three major oil marketers, and over N15 billion owed by 26 marketers—all from 2021.

Further, the NNPCL reportedly failed to collect over $2 billion and N48 billion in outstanding royalties from oil companies for the same year, a situation the Auditor-General says has likely hindered budget implementation.

SERAP’s legal team, comprising Kolawole Oluwadare, Oluwakemi Oni, and Valentina Adegoke, emphasized in the court filing that the missing funds underscore a broader issue of systemic accountability failure within the NNPCL.

 By Nasiru Ibrahim 

The channels of distribution from exploration to consumers in Nigeria’s oil industry—before Dangote’s refinery—began with crude oil extracted by NNPC Ltd. and international companies such as Shell, Mobil, and Chevron. The crude was sold to NNPC or exported. Due to the poor performance of local refineries, such as those in Warri and Port Harcourt, Nigeria relied on importing refined fuel through NNPC and major marketers, including TotalEnergies, Oando, and Conoil.

Once imported, the fuel was stored in depots like Apapa, Atlas Cove, Ibru Jetty, and Calabar. From there, independent transport companies such as Petrolog, TSL Logistics, AA Rano, and MRS transported it by tanker to filling stations. These stations—both major and independent—sold the fuel directly to consumers. 

Alhaji Aliko Dangote is on the verge of taking full control of Nigeria’s downstream oil sector, covering everything from marketing and retail to transportation and distribution of petroleum products. In economic terms, this is known as vertical integration. Many Nigerians are now raising concerns that Dangote could dominate the entire fuel market. This comes after Dangote Petroleum Refinery released a press statement outlining its upcoming plans for fuel supply and distribution.

In the statement dated June 16, 2025, the company announced that it will start selling petrol (PMS) and diesel in the Nigerian market from August 15, 2025. To support this, it plans to roll out 4,000 Compressed Natural Gas (CNG)-powered trucks across the country to deliver fuel directly to buyers at no additional logistics cost.

Dangote also revealed that it will offer credit facilities to credible buyers who purchase at least 500,000 litres of PMS or diesel. 

These buyers include registered oil marketers, manufacturers, telecom companies, airlines, and other large fuel consumers. The company states that this move will enhance fuel availability, reduce reliance on imports, and bolster Nigeria’s energy security by overseeing both refining and distribution.

With Dangote’s new initiative, he buys crude oil from NNPC and refines it here in Nigeria. Then, using his trucks, he moves the fuel to his storage depots and delivers it straight to filling stations. This means no need for middlemen or prominent marketers—everything is handled by Dangote’s team from start to finish.

However, while this could lower fuel prices and ease supply challenges, it has also sparked fears about reduced competition. Some worry that giving too much power to one player could lead to a market monopoly, calling for proper regulation to ensure fairness in the downstream sector.

Economists, policymakers, businessmen, entrepreneurs, and economics students like myself are actively considering the potential impact of this new initiative on oil marketers, the Nigerian economy, employment, exchange rates, consumers, filling stations, climate change, and other critical factors. Many are questioning whether this move will yield positive results. However, we cannot understand the implications unless we first examine the structure and components of Nigeria’s downstream sector, including Dangote himself, his competitors, those affected by his actions, and all other players in the supply chain up to the final consumer.

In economics and policy development, a long-standing debate exists about how policies should be evaluated. Some scholars argue that policies should be judged by their outcomes, while others believe they should be assessed based on their intentions. For example, Milton Friedman emphasised that policies must be judged by their results, not their intentions. 

In contrast, economists like Paul Samuelson acknowledged the importance of considering both intent and context, especially when outcomes are not yet visible. This debate is relevant here. It may be premature to conclude whether Dangote’s new initiative is positive or negative solely based on expected results, as those outcomes have not yet materialised. 

Nevertheless, some would argue that judging the initiative by its intention — such as improving fuel availability, reducing logistics costs, and enhancing energy security — is still meaningful, especially in economic policy, where many decisions are based on projected or long-term effects. Evaluating intentions enables us to gauge the direction of policy, even in the absence of immediate evidence.

Nigeria’s downstream sector is responsible for refining, retailing, distribution, transportation, and marketing of petroleum products. It comprises several companies and regulatory bodies, including NNPCL, Dangote Refinery, Oando, MRS, AA Rano, ExxonMobil, Danmarna, Aliko Oil, and many others. While Dangote operates across both the midstream and downstream sectors, his actions may also indirectly affect the upstream sector, particularly through their influence on demand, supply, and the pricing of petroleum products.

Instead of focusing solely on the structure of the downstream sector, I believe we should carefully consider both the potential benefits and drawbacks of this new initiative by Dangote Refinery, without completely dismissing Friedman’s view on judging policies strictly by results.

Potential Positive Implications of the New Initiative

Firstly, Dangote’s new initiative will reduce Nigeria’s dependence on imported oil from the Gulf and Europe. This is beneficial for Nigeria’s foreign exchange (FX) reserves, as less demand for imported fuel means the country will need fewer U.S. dollars for imports. As a result, this could lead to an appreciation of the Naira due to a fall in demand for foreign currency. Additionally, it will improve the trade balance and increase GDP contribution from the domestic oil refining sector.

Secondly, the initiative will create both direct and indirect jobs in Nigeria. Direct employment opportunities will arise for truck drivers, mechanics, technicians, depot workers, and logistics personnel. If Dangote deploys between 2,000 and 4,000 trucks, and each truck requires one to two drivers, along with at least one support mechanic, one depot staff member, and logistics coordinators, this could result in approximately 20,000 direct jobs. Indirect employment opportunities will arise for consultants, accountants, lawyers, filling station managers, as well as workers in catering, cleaning, petrochemicals, fertiliser, plastics, and related industries.

Thirdly, the initiative will enhance fuel accessibility and improve supply chain efficiency, thereby reducing waste and environmental pollution. By taking direct control over storage and distribution, the initiative can eliminate middlemen inefficiencies, potentially reducing fuel scarcity and hoarding, which often drive up inflation. With direct sales to filling stations, illegal practices like tanker swaps and product diversion by middlemen can be curbed. Furthermore, the use of Compressed Natural Gas (CNG)-powered trucks will lower transportation costs, reduce emissions, and increase domestic gas utilisation, thereby boosting gas revenue.

Fourthly, the initiative is expected to lower fuel prices, which is a major driver of inflation in Nigeria. By eliminating international shipping fees, foreign refinery profit margins, and import levies—all of which form a significant portion of the overall fuel cost—the retail price per unit of fuel could drop. Lower fuel prices can ease the cost of living, reduce inflationary pressures, and improve economic stability.

Fifthly, the initiative will strengthen Nigeria’s energy security in the face of global supply chain disruptions. For instance, ongoing conflicts such as the Israel-Iran and Russia-Ukraine wars, or geopolitical tensions in the Middle East, can threaten the global fuel supply. Additionally, OPEC+ efforts to raise oil prices increase external vulnerabilities. By reducing dependence on imported fuel, Nigeria becomes more resilient to global shocks, ensuring steady availability of fuel at domestic filling stations even during international crises.

Sixthly, from a broader perspective, this initiative positions Nigeria as a regional supplier of refined petroleum products in Africa, reducing the continent’s reliance on Europe and the Gulf. This shift enhances Nigeria’s foreign policy leverage and strategic influence, particularly within regional and international institutions such as ECOWAS, AfCFTA, AfDB, and Afreximbank. A robust domestic refining industry enhances investor confidence and may attract more foreign direct investment (FDI) in the long term. Investors are more likely to commit to economies with stable energy supply, regional trade advantages, and reduced exposure to global price shocks.

Potential Negative Implications

Firstly, there is a serious economic fear that this could lead to a monopoly, and many Nigerians have already raised concerns about that. The Petroleum Tanker Drivers and Owners Association of Nigeria (PATROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have both expressed worry that Dangote might dominate the entire downstream oil sector. In economics, when a single company controls the whole supply chain, from refining to selling, it stifles competition. And when there’s no competition, prices can be fixed unfairly, small businesses get pushed out, and consumers suffer in the long run.

Secondly, there’s the risk of predatory pricing. This occurs when a powerful company sells at very low prices—sometimes even below cost—to drive smaller competitors out of the market. Dangote might do this since he doesn’t import fuel and can afford to sell at a lower price. However, after chasing them out, he can raise prices at any time, leaving people with no choice and putting consumers at risk of exploitation. This leads to what is called “deadweight loss” in economics, where both individuals and the economy lose out.

Thirdly, many jobs could be lost, especially among small fuel marketers, distributors, and transporters who previously imported and sold fuel themselves. Dangote is now doing everything directly—refining, distributing, and even retailing—which means companies like AA Rano, Danmarna, Aliko Oil, and many others might be pushed out or forced to operate under unfair terms. This is already affecting their businesses, especially in the North, and could lead to job losses in areas that rely heavily on these companies.

Fourthly, government policy interference and the role of the Nigerian National Petroleum Company Limited (NNPCL) could create more problems. NNPCL also operates in the downstream sector and has partnerships and influence that could either support or conflict with Dangote’s activities. Past issues, such as unclear pricing, fuel subsidy mismanagement, and delays in policy implementation, demonstrate that when government agencies operate without transparency, it can create more confusion than solutions. This could make it easier for big companies like Dangote to influence decisions in their favour while others suffer.

Fifthly, new investors might avoid the sector. If one company already controls everything, what’s left for others to invest in? People may view the fuel business in Nigeria as a “one-man game,” making it challenging to attract new ideas, competition, and investment. This can slow down innovation and limit the country’s long-term progress in energy.

Sixthly, there’s a risk of regional imbalance. Dangote might focus more on high-demand urban areas where there’s more profit, and this could lead to fuel shortages in rural or northern regions. Small marketers who once served these communities may not survive, and that means remote areas could suffer more from fuel scarcity. This may exacerbate existing regional inequalities.

Possible solutions 

Firstly, don’t ban fuel imports immediately. Let other marketers continue importing fuel, at least for the time being. If only one company controls the supply, prices may rise or stay unstable. The government can grant import waivers to others, ensuring that competition remains alive and fuel remains affordable.

Secondly, we should repair our old refineries and support the development of new ones. Dangote shouldn’t be the only one refining fuel. If we repair the Warri, Port Harcourt, and Kaduna refineries and encourage small private ones, we’ll have a more local supply. That also helps in the future if we want to export after meeting our own needs. 

Thirdly, ensure that other players can access storage and transportation facilities. If only Dangote had the port, pipelines, and trucks, smaller marketers wouldn’t survive. The government can step in to make sure these facilities are shared fairly, with clear rules and affordable fees.

Fourthly, don’t forget far places like Northern states and rural towns. Most fuel may remain in the South, where Dangote is located. Therefore, the government should support distribution to remote areas by encouraging group buying or establishing shared fuel depots. Everyone deserves access, not just those near the refinery.

Fifthly, expand the availability of fuel alternatives like CNG to more locations. If we’re shifting to compressed natural gas (CNG), it should not be exclusive to the rich or city dwellers. Rural and remote areas require the same support,including CNG buses, filling stations, and awareness initiatives.

Finally, monitor prices and ensure fairness. We need a simple system that tracks and shows fuel prices across regions. That way, if one company tries to raise prices unfairly, the public and the government will be aware.

Ibrahim is an economist and writer based in Jigawa State, Nigeria. He holds a degree in Economics from Bayero University, Kano. With a background in journalism at Forsige, he currently works as a research assistant and contributes expert commentary on economics, finance, and business.

By Abdullahi Mukhtar Algasgaini

The Federal Government has dismissed media reports claiming the collapse of a potential forward sale of crude oil involving the Nigerian National Petroleum Company Limited (NNPC Ltd).

In a press statement issued by the Federal Ministry of Finance, the government acknowledged market speculation around the deal but clarified that no final decision had been made.

It described reports of the initiative’s failure as “unfounded.”

The statement emphasized the government’s commitment to exploring transparent and fiscally responsible financing options to maximize Nigeria’s oil resources, boost external liquidity, and enhance economic stability.

Authorities reassured stakeholders that innovative strategies remain underway to strengthen the nation’s financial outlook.

No further details were provided on the status of the proposed crude oil sale.

By Sabiu Abdullahi

President Bola Tinubu has approved a restructuring of the Nigerian National Petroleum Company Limited (NNPCL) leadership, which saw the removal of the board chairman, Chief Pius Akinyelure, and the Group Chief Executive Officer, Mele Kyari.

In a statement, presidential spokesman Bayo Onanuga confirmed that President Tinubu also dismissed all other board members appointed alongside Akinyelure and Kyari in November 2023.

“The new 11-member board will have Engineer Bashir Bayo Ojulari as the Group CEO and Ahmadu Musa Kida as the non-executive chairman,” Onanuga stated.

Additionally, President Tinubu has appointed Adedapo Segun to the new board. Segun previously replaced Umaru Isa Ajiya as the Chief Financial Officer of NNPCL in November.

The newly constituted board includes six non-executive directors representing different geopolitical zones of Nigeria.

Bello Rabiu will represent the North West, Yusuf Usman the North East, and Babs Omotowa, a former Managing Director of Nigeria LNG, the North Central region.

Other appointees include Austin Avuru as a non-executive director from the South-South, David Ige from the South-West, and Henry Obih from the South-East.“Mrs.

Lydia Shehu Jafiya, the Permanent Secretary of the Federal Ministry of Finance, will represent the ministry on the new board, while Aminu Said Ahmed will represent the Ministry of Petroleum Resources,” Onanuga added.

He further stated that “all appointments take effect from today, April 2.”President Tinubu, exercising his powers under Section 59, Subsection 2 of the Petroleum Industry Act, 2021, noted that the board’s restructuring is aimed at enhancing operational efficiency, restoring investor confidence, increasing local content, boosting economic growth, and strengthening gas commercialization and expansion.

According to the statement, the President has directed the new board to conduct an immediate strategic review of NNPC-operated and Joint Venture assets to ensure they align with revenue optimization objectives.

Since assuming office in 2023, the Tinubu administration has implemented oil sector reforms to attract investment. Last year, NNPCL secured $17 billion in new investments, with projections to increase the figure to $30 billion by 2027 and $60 billion by 2030.

By Uzair Adam

Former President Olusegun Obasanjo has criticized the Nigerian National Petroleum Corporation Limited (NNPCL) for extending an open invitation to him to tour the Port Harcourt and Warri refineries, describing it as disrespectful.

Reacting through his media aide, Kehinde Akinyemi, Obasanjo expressed displeasure over the lack of a formal invitation, stating that such an approach undermined the dignity of his office.

“Is that the right way to invite a former president of the country? Who says Baba has even seen the statement or read the news? It is a total disrespect for the office of the former president.

“Ask the NNPCL, as of January 2, have they written to him? Is there any official letter addressed to him, inviting him to the refinery? It is an absolute insult, and the former president cannot dignify such with a response,” Akinyemi stated.

The NNPCL had extended the invitation through its spokesperson, Olufemi Soneye, following an interview Obasanjo granted on Channels Television, where he highlighted failed efforts to privatize Nigeria’s oil refineries during his presidency.

Obasanjo recounted that in his tenure, Aliko Dangote, Chairman of Dangote Group, had assembled a team to manage the Port Harcourt and Kaduna refineries through a $750 million public-private partnership deal.

However, his successor, Musa Yar’Adua, rejected the proposal, believing that the NNPC could manage the refineries despite clear evidence of inefficiency.

He remarked, “When I was president, I wanted to do something about the three refineries we have: Port Harcourt, Warri, and Kaduna.

“Aliko got a team together after I asked Shell to come and run it for us, but Shell declined. They wouldn’t take equity or even run it.

“Eventually, Aliko’s team paid $750m to manage the refineries. Unfortunately, my successor refunded their money, claiming the NNPC could run them. But we knew they couldn’t.”

Obasanjo lamented the mismanagement and wastage of over $2 billion on the refineries since 2007, with little to no improvement.

While acknowledging Dangote’s competence in managing his privately owned refinery, Obasanjo expressed doubts about the government’s ability to achieve similar efficiency.

In defense, NNPCL spokesperson Femi Soneye insisted that the refineries were operational and undergoing comprehensive rehabilitation to meet global standards.

“We extend an open invitation to former President Obasanjo to tour the rehabilitated refineries and witness firsthand the progress made under the new NNPC Limited,” Soneye said.

The news of the reopening of the Warri refinery has sparked skepticism among Nigerians, with many questioning the effectiveness of government-led initiatives in the oil sector.

By Anwar Usman

Not less than 45,689 applicants are conducting the Computer-Based Aptitude Test on Saturday (today) as part of the recruitment process to secure employment at Nigerian National Petroleum Company Limited.

The aptitude test, currently taking place at the Ansar-Ud-Deen Society Centenary Resource Centre in Maitama, Abuja, and various other testing centres across Nigeria, marks the second stage of the rigorous recruitment process that began earlier this year.

Previously, on July 25, 2024, the company announced openings for new entrants.

In a statement, Olufemi Soneye, the NNPC spokesperson, said the recruitment would be for various positions across various departments within the energy company and interested applicants to visit the NNPC careers page for application instructions.

However, in a new post on its official Facebook handle on Saturday to update the public on the process, the national oil firm emphasized that only the most qualified candidates will be selected for employment at the end of the exercise.

The post read, “As the Computer-Based Aptitude Test for NNPC Ltd.’s recruitment begins today at various centres across the country, 45,689 applicants compete in a transparent and inclusive recruitment process.”

The NNPCL Group Chief Executive Officer, Mele Kyari, who visited the centres, promises a smooth, transparent, fair, and credible process.

“As an equal opportunity employer, NNPC Ltd. has made special provisions to ensure that applicants with disabilities can take the test without any hindrance.

“Kyari reiterated that only the most qualified candidates among the 45,689 applicants will be selected for employment”.

The daily reality gathered that this may be the major recruitment exercise since the NNPC fully transformed into a limited company in 2022.

By Zayyad I. Muhammad

The 60,000 barrel-per-day Port Harcourt refinery has officially resumed operations after years of inactivity. This marks a significant milestone in Nigeria’s efforts to revitalise its oil and gas sector. As one of the country’s oldest refineries, with a history spanning 59 years, the Port Harcourt facility is now expected to load at least 200 trucks of petroleum products daily, easing supply constraints, reducing dependence on imported fuels, and introducing a new price regime to compete with the 650,000 barrels per day Dangote refinery. 

Nigeria’s four state-owned refineries have long been entangled in corruption, mismanagement, and relentless pipeline attacks by organised oil thieves. These issues have not only crippled their operational capacity but also forced the country to rely heavily on imported petroleum products, despite its status as a major oil producer.

As the old Port Harcourt refinery has resumed processing crude, with Warri and Kaduna expected to follow soon, an important question arises: Should Nigeria continue with the traditional model of absolute state control and management of its refineries? This outdated approach has proven ineffective, plagued by inefficiencies, corruption, and underperformance.

This presents both a challenge and an opportunity for President Bola Ahmed Tinubu to revamp Nigeria’s refinery management system and introduce reforms to ensure long-term production and efficiency.

When all four state refineries are fully revived and operational, as anticipated, President Tinubu’s government has three viable options for reforming the management of Nigeria’s four state-owned refineries. One approach could involve retaining ownership of one refinery while granting it full autonomy to manage its operations independently, cover its expenses, and remit dividends to the government.

Another option is to lease one of the refineries to an oil company or a group of investors interested in petroleum product refining, ensuring it operates efficiently under private-sector expertise. Lastly, the government could fully privatise one refinery, distributing shares among the federal government, host communities, and Nigeria’s 36 states. This inclusive approach would address diverse stakeholder interests while ensuring effective management.

However, discussions about Nigeria’s refineries are incomplete without addressing the critical issue of managing the country’s extensive 5,120-kilometre oil pipeline network and the Nigerian National Petroleum Corporation Limited (NNPC Ltd.). While the engagement of local communities by NNPC Ltd. has started yielding positive results, significant challenges persist.

The most pressing issues include frequent illegal tapping by oil thieves, sabotage, encroachments on pipeline rights-of-way, delays in detecting leaks, and equipment failures caused by the inaccessibility of certain locations. Compounding these problems is the reliance on outdated methods of pipeline management, which hinder the system’s efficiency and responsiveness.

To address these challenges, adopting advanced technologies is essential. Systems like SCADA (Supervisory Control and Data Acquisition), Fibre Optic Cable (FOC) networks, and tools such as “go-devils,” scrapers, or smart pigs can revolutionise pipeline management. These technologies provide real-time monitoring and early warning systems, enabling swift responses to potential threats or damages, even in remote and inaccessible areas. By integrating these solutions, Nigeria can significantly enhance the security and functionality of its pipeline network, ensuring a more reliable and efficient oil and gas sector.

The revival of the Port Harcourt old refinery and the anticipated return to operation of the Warri and Kaduna refineries are commendable achievements. However, the Tinubu administration must critically evaluate and adopt a new, feasible, profitable, and masses-friendly approach to managing these refineries.

The traditional model of state absolute control has consistently failed, resulting in inefficiencies, corruption, and financial losses. It is time for a transformative strategy that ensures the refineries operate sustainably while delivering maximum benefits to the Nigerian people.

Zayyad I. Muhammad writes from Abuja, zaymohd@yahoo.com.

By Abdullahi Mukhtar Algasgaini

The Managing Director of the Kaduna Refining and Petrochemical Company (KRPC), Dr. Mustafa Sugungun, has said that the ongoing Quick Fix Project for the Kaduna refinery is scheduled to be completed by the end of 2024.

 Recall that the Nigerian National Petroleum Company Limited (NNPCL) awarded a $741m contract to South Korea’s Daewoo Engineering & Construction to rehabilitate the Kaduna Refinery.

Under the quick-fix repair contract, the firm will restore production at the 110,000 barrels-a-day facility to at least 60 per cent of its capacity by the end of 2024.

Speaking during the commissioning ceremony of the renovated Rido Community Primary School and a solar-powered borehole in Maraban Rido, Kaduna State, as part of its Corporate Social Responsibility (CSR) initiatives, he emphasised the company’s commitment to improving the living standards of its host communities.

 The MD, who was represented by the Manager of Operations, Mr. Emmanuel Ajiboye, noted that the success of the Quick Fix Project will bring immense economic benefits and job opportunities, boost petty trading, and foster other local businesses.

He said the school renovation aims to provide a conducive learning environment for pupils and teachers, while the borehole is expected to address water scarcity in the community and reaffirm KRPC’s dedication to sustainable development through initiatives like youth empowerment, rural electrification, periodic medical outreach, and other community-focused programs.

He urged the Rido community to support the Quick Fix Project, noting that its success would further strengthen the relationship between KRPC and its host communities.

In her remarks, the Head Teacher of Rido Primary School, Mrs. Rachael Aduwak, commended KRPC for the good gesture. 

She also appealed to the company to construct a perimeter fence for the school, adding, “We appeal to KRPC to furnish our classes with tables, chairs, and chalkboard as most of our students are sitting on bare floors during class hours.”

By Uzair Adam 

The Federal Government has launched an ambitious initiative to increase Nigeria’s crude oil production by one million barrels daily within the next 12 to 24 months. 

This plan is part of broader efforts to address challenges such as oil theft, pipeline vandalism, outdated infrastructure, and attracting new investments.

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) noted a 1.68% decline in production from 1.571 million barrels per day in August to 1.544 million barrels per day in September. 

Despite this, the government’s new initiative, “Project 1MMBPD,” is expected to restore production levels through strategic interventions.

President Bola Ahmed Tinubu, represented by Senator George Akume, the Secretary to the Government of the Federation, emphasized that increasing production is crucial for boosting national revenue and economic growth. 

“Projecting one million barrels per day is a step towards a more sustainable future for Nigeria’s oil and gas sector,” the President said at the event marking NUPRC’s third anniversary.

Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, urged the sector to aim for even higher targets. 

He noted that Nigeria once produced over two million barrels per day and should be looking to reach 2.5 million in the short term and four million barrels per day in the long term.

The government also approved four major divestment deals, including ExxonMobil’s sale of its assets to Seplat Energy, while blocking a $2.4 billion Shell divestment deal with Renaissance. 

Mallam Mele Kyari, the group CEO of NNPC Limited, and Tony Elumelu, the chairman of UBA Group, stressed the urgent need to modernize the country’s over 50-year-old oil infrastructure as key to achieving the new production goals. 

Both highlighted the impact of pipeline vandalism and regulatory uncertainty as major hurdles that need to be addressed to safeguard Nigeria’s oil sector and economy.