Former Group Managing Directors, GMDs, of the Nigerian National Petroleum Corporation, NNPC, weekend, called for an upward review of the price of Premium Motor Spirit, PMS, also known as petrol, stating that the present price cap of N145 per litre is not in line with current economic realities.
According to a statement by the NNPC, the former GMDs stated this at a one-day meeting with the Group Managing Director of the NNPC, Dr. Maikanti Kacalla Baru, and the immediate past GMD and current Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, in Abuja.
The former GMDs said the PMS price cap of N145 per litre was not congruent with the liberalization policy, especially with the foreign exchange rate and other price determining components such as crude cost, Nigerian Ports Authority (NPA) charges, among others, remaining uncapped.
They, however, commended the NNPC for resolving the fuel supply crisis and urged the corporation to put measures in place that would ensure sustenance of seamless supply of petroleum products nationwide.
Refineries be rejuvenated
They also advised that the country’s refineries be rejuvenated using the Original Equipment Manufacturers (OEMs), adding that the refineries must be restructured to operate as an Incorporated Joint venture (IJV) similar to the Nigerian Liquefied Natural Gas (NLNG) model with credible partners having requisite technical and financial capabilities.
The former GMDs called on the current management of the corporation to immediately established the true financial status of the NNPC and also decide on the most appropriate way for its capitalization.
They expressed serious concerns about the continued dwindling revenue of the NNPC and advised that the corporation should pay particular attention to its revenue-generating entities such as the Nigerian Petroleum Development Company (NPDC), NNPC retail and the refineries in order to return the NNPC to high performance, growth and profitability.
On exploration activities in Chad Basin
They also support the decision of President Muhammadu Buhari in the area of crude oil exploration activities in the frontier basins, particularly the ongoing efforts in Chad Basin and the Benue Trough, while they advised Baru to pay priority attention to the Chad Basin where promising prospects were recorded.
The statement said: “The former GMDs noted that for effective functioning of any National Oil Company (NOC), the technical components of the country’s Exploration & Production (E & P) must be integrated as part of the country’s NOC. They, therefore, posited that NAPIMS, being the technical component of Nigeria’s E & P, and not just an investment vehicle, must remain with and managed by NNPC. Taking NAPIMS out will make NNPC an ineffective NOC.
“The current Petroleum Industry Bill (PIB) which proposed the incorporation of NAPIMS and taking it out of the NNPC will inhibit the effective functioning of the NNPC as a National Oil Company (NOC).
“This will make NNPC to operate at a different level compared to its peers in other OPEC member countries. While the former GMDs have no issues with incorporation, they strongly advise against taking NAPIMS out of NNPC.”
Present at the meeting, according to the NNPC, was the Minister of State for Petroleum/immediate past GMD, Dr. Ibe Kachikwu, represented by the Senior Technical Assistant, Johnson Awoyomi; HRM (Dr.) Edmund Daukoru, Chief Odoliyi Lolomar, Dr. Thomas M. A. John; Lawrence Amu; Dr. Jackson Gaius-Obaseki; Funsho Kupolokun; Dr. Abubakar Lawal Yar’Adua, Dr. Joseph Thlama Dawha and Maikanti Kacalla Baru.