Fuel scarcity: Don mulls support for modular refineries, advocates mandatory local refining of crude

Protesters calling for supply of crude oil to Dangote Refinery Arewa youths protest, demand supply of crude to Dangote Refinery.

Youths under the aegis of the Arewa Youth Congress of Nigeria (AYCN) took to the streets of Jos on Wednesday and demanded that domestic crude be supplied to Dangote Refinery.

The protesters, who took their protest to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Jos Field Office, refining crude locally by Dangote would boost the nation’s economy.

They carried placards with different inscriptions: anybody fighting Dangote Refinery is an enemy of Nigeria; the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) should ensure NNPC releases the crude oil due to Dangote Refinery and comply with crude supply to Dangote Refinery.

Others were: NUPRC must comply with Section 109 of the Petroleum Industry Act; we demand that N1.7 billion worth of feedstock be given to Dangote Refinery, among others.

AYCN Secretary, Mr. Naankin Sammani, who led the protesters, said that they were on the streets to express their concern over the plight of Nigerians occasioned by the refusal to supply crude to Dangote Refinery.

“We are here to call the attention of the key players in the oil industry to give the necessary crude supply to Dangote Refinery.

“That the Dangote Refinery needs the encouragement of all Nigerians, especially the NUPRC.

“NUPRC must ensure that Dangote Refinery gets sufficient crude to ameliorate the sufferings of Nigerians.

“We are appealing to President Bola Tinubu to follow up on his directive to supply crude to Dangote in local currency,” he said.

The News Agency of Nigeria (NAN) reports that no official of the NUPRC spoke to the protesters.

In another development, the Petroleum and Natural Gas Senior Association of Nigeria (PENGASSAN) has said it would not relent, until victory is achieved in the fight against crude oil theft.

The President of the association, Festus Osifo, stated this on Wednesday in Abuja at the 2024 PENGASSAN Energy and Labour Summit (PEALS 2024).

The News Agency of Nigeria (NAN) reports the summit themed: “The Future of Nigeria’s Oil and Gas Industry: Energy Mix, Energy Security, Artificial Intelligence, Divestment, and Crude Oil Theft”.

“The scourge of crude oil theft poses a significant threat to our industry, economy, and national integrity.

“As an Association, we have mounted the rostrum over time, both on the streets and in the boardroom, to champion this cause, and we will not relent until victory is certain.

“We are steadfast in our resolve to continuously partner with other stakeholders in the industry to combat this menace through enhanced security measures, technological innovations, community engagement, and collaboration with law enforcement agencies,’’ he said.

Osifo said Nigeria stood at crossroads, especially in the oil and gas sector, and the actions and decisions of the association must gear toward rescuing the country.

He said the summit would design framework for a policy trust for government towards shaping the economic outlook of the country.

“It is incumbent upon us to drive positive change, foster economic growth, and ensure our people’s prosperity.

“Recent policy directions by the government have placed untold hardship on Nigerians.

“Chief among them is the flotation cum devaluation of the Naira, which saw our currency slide from N450 officially in May 2023 to the current exchange rate of about 1600 Naira.

“This is the reason why the landing price of PMS today is over N1,000  (reintroduction of subsidy), the reason why AGO is selling for over N1,300 and the reason why all Imported commodities are over the roof today.

“The overarching impact of these on Nigerians can only be imagined rather than experienced,’’ he said.

Osifo said the floating of the Naira in the official market had exacerbated the challenges faced by their members.

He, therefore, called on industry players to explore innovative solutions to forestall financial losses to workers and prevent undue gains to companies and ensure a fair and equitable environment for all.

Osifo said PENGASSAN would do all it could to push for just and equitable distribution across its branches.

The labour leader appreciated the President Bola Tinubu for the recent signing of Executive Order that granted incentives to investments in the oil and gas industry.

He said the move translated to the recent 550 million dollar Final Investment Decision announced by NNPC Limited and TotalEnergies on Ubeta project.

Osifo said PENGASSAN equally recognised the efforts of NNPC Limited Management in furthering partnership initiatives in the upstream and downstream sector of the Industry.

“The recent MOU signed by NNPC Limited with Total Energies and separately with Shell are indications of fostering good relationships with critical partners.

“The expansion of CNG and LPG infrastructures by NNPC Limited across the nook and crannies of the country is a right step in the right direction and this must be encouraged and deepened,’’ he said.

Osifo assured that the summit would forge a path toward a brighter and more sustainable energy future for the industry and the nation.

Still on oil, a university Don has advocated a law to make the local refining of crude oil mandatory to check supply shortages and to improve the economy of the country.

Prof. Abdullahi Dan’Asabe-Jibrin, Dean, Faculty of Social Sciences, Federal University of Lafia (FULafia) made the call at the 3rd Seminar of the faculty, on Wednesday in Lafia.

Dan’Asabe-Jibrin, Professor of Political Economy and Development spoke on:’Nigeria State and Oil Sector: A Trajectory of Power, Politics and Poverty’.

He explained that at the moment crude oil was produced in nine out of the 36 states in the country with five core states accounting for more than two-thirds of the production.

He listed the states to include; Abia, Akwa-Ibom, Bayelsa, Cross-River, Delta, Edo, Imo, Ondo, and Rivers.

He added that the Niger Delta Basin was the largest producer along the West African coast with 246 production fields and 3, 446 active wells.

“How can Nigeria, which is one of the largest oil-producing countries in Africa and with enormous potential rely on foreign refineries for its domestic consumption?,” he said.

According to him, the government should fix the refineries in the country and ensure that the four refineries operate optimally.

He explained that if the Dangote refinery was producing and the four government refineries were also working, it would guarantee the availability and affordability of petroleum products in the country.

“Dangote refinery alone can produce petroleum products for domestic consumption and exports,” he added.

Dan’Asabe-Jibrin suggested that governments should build modular refineries and give private investors the licence to build more to meet the energy needs of Nigerians.

The professor called on the government to fight corruption, which was major impediments in the oil sector and return fuel subsidies to reduce the hardship being faced by the people.

In his remarks, Prof. Shehu Abdul-Rahman, Vice Chancellor (VC) of the university, said that the seminar series was introduced to enable researchers to share knowledge to address societal problems.

Abdul-Rahman encouraged other researchers to investigate more and provide theories and practical solutions to the contemporary challenges confronting the country to help those in positions of authority.

The Vice-Chancellor promised that the institution would reward the faculties and departments that performed best in academic activities and encouraged all in attendance to utilise the takeaways from the seminar.

 

 

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