In a bold move to revamp Nigeria’s oil and gas sector, President Bola Ahmed Tinubu’s Policy Advisory Council has proposed the sale of the Nigerian National Petroleum Company Limited’s (NNPC) majority stakes in upstream, midstream, and downstream sectors. The council’s report, dated May 2023, suggests that the federal government stands to earn approximately $17 billion from this divestment.
Under the recommendations put forth by the Energy and Natural Resources sub-committees of the advisory council, the regulatory landscape would undergo significant consolidation. The council proposes merging the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and the Nigerian Content Development and Monitoring Board (NCDMB) into a single regulatory body.
The council emphasizes the need for President Tinubu’s administration to achieve key milestones within the first 100 days of office, ending in August 2023. To drive progress, the council advises reorganizing the NUPRC and NMDPRA, headhunting competent leaders, and placing capable resources in critical positions within the oil and gas sector.
Furthermore, the council suggests that President Tinubu should ensure the NNPC operates as a commercial entity, adhering to its obligations outlined in the Petroleum Industry Act (PIA). It recommends strengthening the NNPC, enabling it to contribute taxes, royalties, and profits to the Federation Account while maintaining proper regulation by the NUPRC, NMDPRA, and NCDMB.
While the council acknowledges the removal of petrol subsidies by the president, it proposes further deregulation of petrol pricing. Additionally, it advocates for the implementation of the Federal Direct Cash Transfer Programme, which would disburse $8 billion in direct cash transfers to support the poorest 30 million Nigerians. Addressing the issue of insecurity in oil-producing states, the council urges President Tinubu to engage key political and community stakeholders.
To enhance financing in the oil and gas sector, the council calls for a debt repayment framework and the transition to market prices for gas. It underscores the importance of robust policies that unlock Nigeria’s energy potential, fuel economic growth, diversify the economy, and improve energy security sustainably.
With a focus on production targets, the council aims to raise Nigeria’s oil and gas production to 1.8 million barrels per day (mbpd) and 3.5 billion cubic feet (bcf) within the next 18 months, ending in December 2024. To achieve this, it advises closing outstanding divestments and contract issues and placing NUPRC, NMDPRA, and NCDMB in charge of project delivery clarity. The council suggests limiting the policy-making roles of the NNPC, adhering to the Local Content Act to retain the NCDMB’s prescribed mandate.
Furthermore, the council proposes expanding domestic gas reserves and promoting a diversified oil and gas industry by implementing reforms outlined in the PIA, including the National Gas Transportation Network Code (NGTNC). It calls for the development of a sustainable financing model to facilitate oil and gas development projects and the establishment of a third-party gas pricing framework for the export market.
To drive revenue generation and job creation, the council recommends converting oil and gas resources into industrial products and feedstocks. It highlights the importance of prioritizing export-oriented projects to improve bankability and calls for a transition to Net-zero emissions by 2060, utilizing gas as a transition fuel.
The report advises the government to constitute a team within the first 100 days to evaluate portfolios of upstream, midstream, and downstream assets. It suggests conducting a high-level valuation, engaging potential buyers and financiers, and appointing external advisors to facilitate the transaction process and execution timeframe. The council proposes assessing market conditions for the divestment, aiming to raise $17.4 billion from the sale of NNPC’s oil and gas assets.
As President Tinubu’s administration seeks to overhaul Nigeria’s oil and gas sector, these proposed reforms could have significant implications for the country’s economy, energy security, and future growth.
Nigerian National Petroleum Corporation Denies Rumors of CEO Mele Kyari’s Sacking by President Bola Ahmed Tinubu
In a swift response to widespread speculation on social media platforms, the Nigerian National Petroleum Corporation Limited (NNPCL) has refuted claims that its Group Chief Executive Officer, Mele Kyari, has been sacked by President Bola Ahmed Tinubu. The NNPCL categorically dismissed these rumors as the work of mischief makers seeking to spread misinformation.
Garba Deen Muhammad, the Chief Corporate Communications Officer of NNPCL, addressed the issue during a telephone conversation with DAILY POST on Saturday. He stated unequivocally that the claim of Mele Kyari’s termination was baseless and false. He emphasized that the NNPCL remains committed to its mission and would not succumb to rumors and speculations that lack any factual basis.
The rumors gained traction in the wake of the suspension of the Central Bank of Nigeria Governor, Godwin Emefiele, on Friday. Social media platforms were abuzz with discussions and conjectures surrounding the alleged removal of Mele Kyari from his position. However, the NNPCL’s swift response aims to put an end to the unfounded speculations and reaffirm stability within the corporation’s leadership.
The NNPCL’s Chief Corporate Communications Officer, Garba Deen Muhammad, further urged the public to be cautious and verify information from credible sources. He emphasized the importance of relying on official statements and announcements from the relevant authorities, rather than engaging with unverified rumors that can cause unnecessary panic and confusion.
It is worth noting that President Bola Ahmed Tinubu’s suspension of Godwin Emefiele, followed by his subsequent arrest by the Department of State Security, had already created a significant stir within the country. Against this backdrop, the spread of false information regarding Mele Kyari’s alleged sacking only added fuel to the fire, intensifying the already charged atmosphere.
The NNPCL, as one of Nigeria’s foremost oil corporations, plays a crucial role in the country’s energy sector. Mele Kyari, as the Group Chief Executive Officer, holds a position of great responsibility and oversees important decisions affecting the corporation’s operations. Thus, rumors about his dismissal can have far-reaching consequences, impacting not only the corporation but also the stability and confidence of the oil and gas industry.
Finally, the Nigerian National Petroleum Corporation Limited has firmly denied the rumors surrounding the sacking of Mele Kyari as its Group Chief Executive Officer. The NNPCL emphasized that these rumors were nothing more than the work of mischief makers attempting to spread misinformation. It is imperative for the public to rely on verified information from credible sources, rather than succumbing to the influence of unverified social media claims.
Source: NNPCL Denies Sack of Mele Kyari
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