Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, has announced that the federal government is determined to ensure the Nigerian National Petroleum Company Limited (NNPC) is held accountable for the comprehensive rehabilitation of all the nation’s refineries by the end of 2024. Lokpobiri made this declaration during a press conference at the conclusion of a three-day retreat for Ministers, Special Advisers, and other presidential aides at the Conference Centre of State House in Abuja.
NNPC has the responsibility of rehabilitating three refineries in the country with the objective of reducing fuel scarcity and promoting the use of natural gas.
The Senate has recently constituted an ad-hoc committee to investigate the NNPCL over the N11.35 trillion expended on Turn Around Maintenance (TAM) of the refineries. The committee’s mandate is to scrutinize officials of the Federal Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPC, and the Bureau of Public Enterprises to devise strategies for commercializing and ensuring the profitability of state-owned refineries.
Addressing the timeline for refinery rehabilitation, Minister Lokpobiri stated, “Yes, the rehabilitation of the refineries, if you could remember, was started by the previous administration, and as part of the president’s directive, I have gone round all the refineries, and from what they have briefed me, Port Harcourt has three phases, so Phase 1 will be ready by the end of this year.”
He emphasized that the NNPC is responsible for the rehabilitation and that they have committed to meeting these timelines. Lokpobiri pledged to monitor the progress regularly, sometimes without prior notice, to ensure accountability.
In addition to refinery rehabilitation, the Minister also discussed the challenges surrounding modular refineries. While the government has issued licenses for these smaller-scale refineries, the availability of crude oil for refining remains a significant challenge. Lokpobiri highlighted the need to increase crude production to resolve the country’s fuel crisis and mentioned the government’s target of achieving two million barrels per day by the end of 2023.
Furthermore, he stressed the importance of ensuring that the licenses issued for modular refineries are utilized effectively, and the government is prepared to revoke licenses for underutilized facilities. The Minister’s approach aims to streamline the licensing process while holding operators accountable for their licenses.
Minister Lokpobiri’s remarks underline the government’s commitment to addressing the nation’s energy and refinery challenges, including rehabilitating refineries and encouraging the development of modular refineries, which are considered important employers of labor. Increasing crude oil production remains a key focus in resolving the fuel crisis and improving the energy sector in Nigeria.