The Independent Petroleum Producers Group (IPPG) has called for an end to Nigeria’s crude oil imports to meet the needs of domestic refineries. Abdulrazaq Isa, the group’s chairman, made this statement at the 2024 Crude Oil Refinery-owners Association of Nigeria (CORAN) Summit in Lagos.
Isa emphasised the need to address underinvestment in the sector and unlock additional gas and crude oil production to secure Nigeria’s energy future. He urged the government to expedite pending divestment transactions involving international oil companies (IOCs) to maximise national benefits.
In his dual role as CEO of Waltersmith Petroman Oil Ltd, Isa highlighted the importance of enhancing security in the Niger Delta. This would create a stable working environment, reduce asset vandalism, and mitigate unrest. He called for infrastructure upgrades and expansions to increase productivity and ensure a reliable supply of products for both domestic and export markets.
“Addressing these issues could unlock an incremental production of 500,000 barrels of oil per day and 1.5 million standard cubic feet of gas daily in the short to medium term,” he stated.
Isa also stressed the importance of maintaining Nigeria’s domestic crude oil refining and petrochemical capacity through local production. He asserted that this would foster industrialisation and boost foreign exchange earnings, transforming Nigeria into a net exporter of refined products. To achieve this, he called for collaboration among industry stakeholders, including policymakers, regulators, and refinery operators.
With the global energy landscape rapidly evolving, Isa believes Nigeria can position itself to seize new opportunities. He described the summit as a crucial step towards developing strategies that would ensure a competitive and resilient refining sector.
Collaboration for a Sustainable Future
Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), echoed Isa’s sentiments, urging the association to work with the government for a sustainable energy future. Ahmed, represented by Francis Ogaree, the executive director of hydrocarbon processing plants, installations, transportation, and infrastructure, noted that such partnerships would enhance Nigeria’s position in the global energy market.
Ahmed highlighted the critical role of private sector investment in developing the industry. He affirmed NMDPRA’s preference for a cooperative approach over punitive enforcement concerning the Petroleum Industry Act (PIA). “NMDPRA envisions a transparent, competitive downstream market that attracts investment,” he said, referencing Section 32 of the PIA.
He further mentioned efforts to reduce fees for licenses and permits to create a more welcoming environment for investors. NMDPRA aims to foster public-private partnerships (PPP) to enhance refining capacity and mitigate project risks while ensuring compliance with operational and environmental standards.
“Streamlining licensing and approvals will reduce bureaucratic delays and provide a conducive legal framework for private investment,” he added.
Ahmed also indicated that NMDPRA has made significant progress in simplifying regulatory processes and engaging with stakeholders to maintain an attractive downstream market. “By fostering collaboration, NMDPRA aims to address investor concerns and create a favourable investment climate,” he remarked.
He underscored the need for market liberalisation, including the removal of subsidies and price controls, to foster a competitive pricing environment in which private operators can thrive. Ahmed also stressed the importance of private refiners participating in corporate social responsibility (CSR) programmes, particularly in the communities surrounding their facilities, to ensure local benefits such as job creation and development.