Port Harcourt — The recent declaration of a state of emergency on crude oil production by the Nigerian National Petroleum Company Limited, NNPCL, has been met with criticism and cautious optimism from industry stakeholders.
The Group Chief Executive Officer of NNPC Ltd, Mele Kyari, at the 23rd Nigeria Oil and Gas Conference and Exhibition in Abuja, had announced that the company has declared a state of emergency on oil production; a move towards increasing Nigeria’s daily oil production and growing its reserves.
While an increase in oil production is expected to increase revenue for the country, some stakeholders including environmental activists are sounding the alarm on the potential impact on the Niger Delta environment.
Other stakeholders criticized the fuel subsidy regime and importation of refined petroleum products, calling on NNPC Ltd to instead declare a state of emergency on local refining, as well as on the Niger Delta environment.
A stakeholder of the Independent Petroleum Marketers Association of Nigeria, IPMAN and energy expert, Dr. Joseph Obele, described the move by NNPC Ltd as a “misfire” that fails to address the root causes of decreasing oil production.
Obele emphasized that the bitterness of host communities and high unemployment rate in the country, were the top factors responsible for oil theft.
“The state of emergency declared by the NNPC boss was a misfire. We must condemn all forms of criminal activities such as pipeline vandalism and oil theft, but we must also identify the root causes. The first step in problem-solving analysis is identifying the root cause.
“Until host communities are feeling the impact or benefits of oil production on their land, that element of bitterness which propels stealing of the nation’s oil will not be aborted,” he warned.
Obele urged the NNPC to prioritize local refining and end importation, stressing that this will reduce oil theft and address the nation’s energy crisis.
“It is when we end importation that our refineries will be given due attention. The biggest racketeering in Nigeria is subsidy regime and fuel importation from the international market, which has led to the abandonment of our nation-owned refineries.
“The appropriate state of emergency should be a declaration against importation of refined petroleum products from the international market. The topmost appropriate supposed to be declaration state of emergency on the state of Nigerian refineries,” he added.
Similarly, the Youths and Environmental Advocacy Centre, YEAC-Nigeria called on the government to also declare a state of emergency on the environment in the Niger Delta, to address the long-standing issue of pollution in the region.
Executive Director of YEAC-Nigeria, Mr. Fyneface Dumnamene Fyneface, also charged NNPC Ltd to involve artisanal refiners in the process, through the legalization of their operations and the establishment of modular refineries.
“The government, through NNPC Ltd should also take note that increased oil production will lead to increase environmental pollution which means that the people of the Niger Delta that live in the oil-producing community will have challenges relating to pollution and those also need to be addressed.
“So the Minister of Environment should also declare an emergency on the Niger Delta environment with a view of increasing the pace of clean up and commissioning clean up in areas where there is no clean up now.
“NNPC Ltd should also take note that in the declaration of emergency in oil production you also include those who are involved in artisanal refineries and crude oil thefts in the Niger Delta by way of also giving them licenses to operate modular refineries, which will lead to increase in oil production, due to demand.
“Another thing that the NNPC Ltd should do is to legalize artisanal refineries in the Niger Delta through the establishment of the Presidential Artisanal Crude Oil Refining Development Initiative, PACORDI. This will also help to increase oil production in the Niger Delta.”