*Says N15.8tn spent on petrol import in 18 years
*Expresses support for NNPC’s refining expansion plans
Emmanuel Addeh in Abuja
The Nigeria Extractive Industries Transparency Initiative (NEITI) yesterday called for the quick completion of rehabilitation work on the crude oil refineries run by the Nigerian National Petroleum Company Limited (NNPC) nationwide.
Besides, the Ogbonnaya Orji-led organisation congratulated the national oil company on the successful completion of the first phase of the Port Harcourt Refinery rehabilitation project and the gradual resumption of operations at the Warri Refinery.
Stressing that the accomplishments represent significant strides towards addressing Nigeria’s long-standing dependence on imported petroleum products, NEITI recalled that from its recently published reports, Nigeria spent a whopping N15.8 trillion on fuel subsidy between 2006 and 2023.
The operationalisation of the refineries, it said, is a monumental step towards achieving energy self-sufficiency and fostering economic sustainability, a statement by the acting Director, Communication & Stakeholders Management, Director, Communication & Stakeholders Management, Obiageli Onuorah, noted.
By reducing the staggering costs associated with fuel importation, the milestone, according to NEITI, will positively impact Nigeria’s foreign exchange reserves and create a ripple effect across key sectors of the economy.
“NEITI acknowledges that the revitalisation of the Port Harcourt and Warri Refineries has the potential to enhance energy security, create jobs, stimulate local industries, and free up critical funds that can be redirected towards national priorities like health, education, and infrastructure.
“Through its Industry Reports for the Oil and Gas 2023 released recently, between 2006-2023 (in 18 years), a total of N15.87 trillion was expended as under-recovery through price differentials (subsidy) with 2022 recording the highest sum of N4.714 trillion.
“2022 also recorded the highest importation of PMS put at 23.54 billion litres, while 2017 recorded the lowest import volumes of 16.88 billion litres. Furthermore, between 2022 and 2023, importation volumes declined by 3.25 billion litres (14 per cent) from 23.54 billion litres in 2022 to 20.28 billion litres in 2023. This is attributed to the announcement of the removal of fuel subsidy.
“With the current efforts to put the refineries back to work, NEITI is delighted that the huge payments expended on subsidy will henceforth be available to support national development, ongoing rebuilding of the national infrastructure and poverty reduction.
“We request the NNPC to expedite action on the second phase of the Port Harcourt Refinery and the ongoing rehabilitation of the Kaduna refinery. This should be followed closely with the restoration of the phase 1 of the Port Harcourt refinery to optimal capacity in the ongoing rehabilitation efforts”, NEITI stated.
It commended the leadership of the NNPC team for their resilience, dedication, and unwavering determination in executing what it described as the complex and challenging task.
As stakeholders in Nigeria’s energy sector, NEITI said that it remains committed to supporting NNPC’s efforts to ensure the long-term success of the projects and to share the achievements with national and global partners, including the Extractive Industries Transparency Initiative (EITI) community.
“NEITI stands ready to collaborate with NNPC to sustain and expand these gains in the national interest and Nigeria’s energy security,” the statement noted.
