Nigeria’s Minister for State, Petroleum Resources (Oil), Heineken Lokpobiri, on Tuesday, said the claim that he directed the Nigerian National Petroleum Company Limited (NNPC Ltd) to stop running its refineries and focus solely on equity participation in other refineries is “false”.
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Mr Lokpobiri, in a statement posted on his X handle on Tuesday, made this known in reaction to a claim made by the Director of Upstream in the Ministry of Petroleum Resources, Kamoru Busari.
Mr Busari, who represented the minister at a recent conference in Lagos said Mr Lokpobiri has advised the NNPC to stop running its refineries and focus solely on equity participation in other refineries.
In his reaction on Tuesday, Mr Lokpobiri said this does not represent his position as the minister overseeing the oil sector, nor does it reflect the stance of the federal government.
“I wish to categorically state that the claim that I directed the Nigerian National Petroleum Company Limited (NNPCL) to stop running its own refineries and focus solely on equity participation in other refineries is false.
“This does not represent my position as Minister overseeing the oil sector, nor does it reflect the stance of the federal government. It is important to clarify that NNPCL is a company governed under the Companies and Allied Matters Act (CAMA), with a functional board and management,” Mr Lokpobiri said.
He explained that the Ministry of Petroleum Resources does not control or run NNPC Ltd, as it operates independently like any corporate entity.
He added that the oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining.
“We encourage companies, including NNPCL, to operate independently, following global best practices. While we provide strategic guidance, we do not interfere directly in the operations of these companies.
“I reaffirm our commitment to supporting the growth and independence of NNPCL, ensuring that its operations are in line with international standards for efficiency and transparency and profitability,” he said.
Nigeria owns four refineries (in Kaduna, Warri and PortHarcout) that have been moribund for many years despite huge resources committed into turn around maintenance.
Experts say that one of the fundamental crises bedeviling the nation’s opaque oil sector is Nigeria’s inability to operate local refineries.
The Dangote Refinery, located on the outskirts of Lagos, was inaugurated recently amid expectations that it will address some of the issues affecting the sector.
Although the NNPC initially had an equity of about 20 per cent in the refinery, it was subsequently reduced to 7.25 per cent.
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