The Executive Director, Centre for Sustainable Mobility and Development, Kayode Opeifa has said that the Nigerian National Petroleum Company Ltd is playing its role to ensure distribution of petroleum product across Nigerian, in line with its mandate as enshrined in the Petroleum Industry Act, 2021.
Opeifa said the NNPCL has strategically positioned itself to manage the delivery of Premium Motor Spirit across Nigeria despite sabotage and infrastructure challenges.
The former Lagos State Commissioner of Transport shared this view on Monday while discussing fuel scarcity and challenges in Nigeria’s downstream space on TVC, monitored by THE WHISTLER.
The expert said this in view of the last disruption in the supply of PMS resulting from weather issues and floods, according to the NNPCL.
The disruption led to the queues in major cities of the country.
Stakeholders including Olisa Agbakoba (SAN) had criticized the NNPC and claimed that it was acting as a regulator.
But the oil and gas expert explained that the industry is bedeviled with several challenges that are not limited to infrastructural issues.
He said, “For NNPC, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigerian Upstream Petroleum Regulatory Commission (NUPRC), I will say the NNPC, NUPRC do not carry the blame. Neither do the NMDPRA carry the blame in this regard, because they came out, and told us openly, that clearly we have issues. It’s going to take a week. And after that week, if you now see scarcity beyond management, yes, you blame them.
“In this case, I monitor this. Within the period they say the thing will go down, it went down. Not completely. Do you know why it will not go completely? I saw vehicles on NNPCL and I asked if there was fuel scarcity and they said no, it’s because of the price. And that’s the reality now. Because the sector is deregulated, people are free to sell at different prices. So, I won’t blame an NNPC on this case. I think they’ve even gone beyond. That’s why somebody (Agbakoba) referred to an NNPC as possibly the regulator also.”
He explained that the PIA empowers the NNPCL as a player in the oil and gas industry to participate in the importation of PMS.
According to him, the NNPCL is not the sole importer of PMS, adding that the NNPCL has more capacity to access the foreign exchange needed to import petroleum product.
Opeifa emphasized that the PIA empowered the NNPCL to be a “provider of last resort” which is a major mandate aimed at ensuring energy security.
He clarified that PIA also prohibited a price cap for petroleum products, adding that it empowers the
Federal Competition and Consumer Protection Commission (FCCPC) to monitor those exploiting the system.
Opeifa claimed that some stakeholders are sabotaging the system to frustrate NNPCL’s effort to ensure a seamless supply of PMS to Nigerians.
The director explained, “The PIA also says nobody should control the prices and only mandates, the FCCPC to be the one to monitor, price gouging. And when you have all those things, that means if everybody works together, you may see a better situation.
“Definitely, you will see a better situation. But what you have in this case, you also have stakeholders who are also taking the opportunity to profiteer. There is arbitrage, there is, I don’t like using the word, sabotage, and there is also people with passion doing the job well but definitely, in this case, they said it is environmental, that is a thunderstorm.”
The expert, however, believes that the industry would improve if stakeholders allow the PIA to work effectively.
According to him, the PIA would enable more stakeholders to join the Dangote Refinery to establish refineries, which will ensure sufficient supply of PMS in the country.