Senator Heineken Lokpobiri confirmed that the Nigerian government’s full deregulation of the downstream oil sector is benefiting citizens. He acknowledged the tough decisions made by President Bola Tinubu and emphasized the importance of petrol retailers. Lokpobiri committed to supporting energy advancements, including CNG, and clarified that the naira-for-crude initiative is being optimized, not canceled. His discussions also highlighted a need for inclusive regulatory practices and competitive pricing in the oil market.
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources, asserted on Tuesday that the Nigerian government’s decision to fully deregulate the downstream oil sector is yielding benefits for citizens. Speaking during a visit from the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) in Abuja, he acknowledged the difficulty of this decision but emphasized the courage shown by President Bola Tinubu to implement it.
Lokpobiri remarked that most Nigerians rely on petrol retailers for energy supply, highlighting their crucial role in the benefits being realized from deregulation. He expressed his dedication to collaborate with PETROAN to enhance value for the public and noted that the organization serves customers beyond Nigeria’s borders, including Chad and Cameroon.
He stated, “It was a very difficult decision to get the sector fully deregulated… But today, everybody can agree that we are getting the benefit of full deregulation.” He further illustrated the positive impact of deregulation, explaining that it has balanced fuel prices across the country and opened avenues for investment in the sector.
Additionally, Lokpobiri envisioned the future inclusion of Compressed Natural Gas (CNG) components at fuel stations as part of Nigeria’s transitional energy plans. He affirmed his willingness to support the government in expanding CNG distribution while addressing important concerns raised by PETROAN.
In response to speculations about ending the naira-for-crude oil swap initiative, Lokpobiri clarified that this pilot scheme is under review for optimization, not cancellation. He emphasized that the negotiations for crude purchases remain a private sector matter, with various currency options available.
He discussed the strategic direction of the Nigerian National Petroleum Company Limited (NNPC), stating that the company should operate with a degree of independence akin to global industry leaders. This approach aims to maximize opportunities within Nigeria’s oil sector while ensuring accountability.
During the meeting, Dr. Billy Gillis-Harry, President of PETROAN, commended Lokpobiri’s leadership in advancing oil and gas sector developments, including increased crude production and investment attraction. He suggested involving PETROAN members in the regulatory authority’s board to ensure comprehensive input from the industry.
Gillis-Harry advocated for a multifaceted approach to petroleum supply, promoting local refining while allowing imports to maintain competitive pricing in the market. He stressed that fair competition is essential to sustain affordable fuel prices for consumers.
The deregulation of Nigeria’s downstream oil sector, while initially challenging, has begun to bear fruit for the populace, as affirmed by Minister Heineken Lokpobiri. He emphasized the importance of petrol retailers and the expected advancements in the inclusion of CNG services. The commitment to collaboration between the government and industry stakeholders aims to ensure efficient operations, fair pricing, and robust investment opportunities. Moreover, continued support for local refining, coupled with open importation policies, will bolster competition and enhance consumer affordability in the energy market.
Original Source: www.arise.tv
