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Speaker Urges NNPCL Innovation for Oil Sector Efficiency

Katsina City News
23 Nov, 2023
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By Muhammad Ahmad Ali Abuja,

November 23, 2023

In a bid to enhance the performance of Nigeria's oil sector and prevent further years of underutilized public assets, Speaker Abbas Tajudeen, Ph.D, has called upon the Nigerian National Petroleum Company Limited (NNPCL) to devise creative strategies for optimal productivity.

During a courtesy visit by the NNPCL management to his Abuja office on Thursday, Speaker Abbas applauded the company for leveraging the Petroleum Industry Act to maximize its commercial potential. However, he expressed concern over the prolonged inactivity of refineries, citing the Kaduna refinery's moribund state for over two decades.

"I am from Kaduna, and the Kaduna refinery has been moribund for more than 20 years. This is inefficiency of a worrisome proportion. The company needs to seek creative ways to repurpose staff strength in such facilities," emphasized the Speaker.

Highlighting the need for efficiency and addressing the waste of human resources, Speaker Abbas advocated privatizing the non-productive refineries to enhance management and productivity.

The Speaker acknowledged the NNPCL's positive shift in utilizing gains from subsidy removal for productive enhancements, leading to a substantial increase in revenue. He pledged the full support of the 10th House and the National Assembly in the company's fight against oil theft, citing the recent establishment of a Special Committee on Oil Theft and Pipeline Vandalism.

Accompanied by the Minority Whip and relevant committee chairmen in the oil and gas sector, Speaker Abbas assured the NNPCL of the House's commitment to partnering in repositioning the nation's economy.

In a presentation, the Group Chief Executive Officer of NNPC Limited, Mr. Mele Kyari, highlighted the company's transformation under the Petroleum Industry Act. Operating at a loss in 2018, the NNPCL reported a significant turnaround, achieving N674 billion profit after tax in 2021 and over N2 trillion income in 2022.

Mr. Kyari projected a revenue of N4.5 trillion for 2023, emphasizing the company's commercial orientation, controlling over 30% of the market share in the downstream sector. He dispelled notions of scarcity, attributing occasional queues to internal events among marketers while assuring consumers of quality and accurate quantity of dispensed products.

The Speaker's call for innovation aligns with the NNPCL's commitment to sustained growth, emphasizing the importance of creative solutions in navigating challenges within the oil sector.