The Centre for the Promotion of Non-public Enterprise has urged the newly appointed chief executives of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Saidu Mohammed, and the Nigerian Upstream Petroleum Regulatory Fee, Mrs. Oritsemeyiwa Eyesan, to make home refining and production development prime priorities.
The attraction comes shortly after Mohammed assumed workplace following the resignation of Ahmed Farouk, whereas Eyesan lately took over management of the NUPRC after the exit of Gbenga Komolafe.
CPPE careworn that robust and deliberate help for home refining have to be instant and non-negotiable.
The organisation referred to as for presidency insurance policies that clearly favour regionally refined petroleum merchandise via focused fiscal, regulatory, and infrastructural help for each private and non-private refineries, whereas encouraging new investments in refining capability.
“Nigeria should finish the present distortion whereby imported petroleum merchandise are made to compete with regionally refined merchandise below unequal regulatory and monetary situations. Real competitors solely exists when all operators operate inside the identical coverage, tax and regulatory surroundings,” CPPE famous.
In accordance with the group, a strong home refining base is vital to constructing a resilient and energy-secure financial system, whereas additionally driving job creation, conserving overseas alternate, supporting macroeconomic stability, and enabling export-oriented refining capability.
“The NMDPRA should subsequently place home refining on the centre of its coverage framework, in step with the President’s Nigeria-First coverage path and industrialisation agenda. This isn’t merely to guard buyers, however to safeguard Nigeria’s long-term {economic} pursuits.”
On the upstream section, CPPE referred to as on the NUPRC to prioritise crude oil and gasoline production development by implementing insurance policies that appeal to recent investments throughout onshore and offshore belongings.
The group mentioned Nigeria should maximise the worth of its hydrocarbon assets as the worldwide power transition accelerates.
“The NUPRC ought to prioritise production development, funding facilitation and improved safety, with a transparent nationwide goal of elevating crude oil output to a minimal of two million barrels per day,” CPPE suggested.
It additionally recognized expanded funding in gasoline production and strict compliance with home crude provide obligations to native refineries as vital priorities.
CPPE recommended President Bola Tinubu for resetting Nigeria’s petroleum regulatory structure via the appointment of recent chief executives on the NMDPRA and NUPRC.
The organisation mentioned the management modifications current a strategic alternative to reposition the oil and gasoline regulatory surroundings in step with the administration’s dedication to power sovereignty, safety, self-reliance, and accelerated production development.
“The brand new management of Nigeria’s petroleum regulatory establishments should urgently refocus sector priorities on decreasing import dependence, increasing home capability and catalysing funding throughout all the oil and gasoline worth chain,” CPPE acknowledged.
The coverage intervention comes amid ongoing controversy within the downstream sector. Earlier this month, Aliko Dangote, President of the Dangote Group, accused the NMDPRA of publishing figures that didn’t precisely mirror production ranges on the Lekki refinery.
Dangote argued that the regulator’s information solely captured merchandise evacuated from the power, reasonably than complete volumes refined and held in inventory.
He additionally accused former NMDPRA Managing Director Ahmed Farouk of undermining home refining by allegedly colluding with worldwide oil merchants and importers via continued issuance of petroleum import licences.
Dangote additional alleged that Farouk financed the schooling of his kids in Switzerland with thousands and thousands of {dollars} with out proof of lawful revenue. Farouk has since resigned from his place.
CPPE concluded that Nigeria’s new petroleum regulatory management should anchor its technique on home refining, production development, funding facilitation, and power safety if the oil and gasoline sector is to drive sustainable development, industrialisation, and long-term {economic} resilience.