The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mallam Mele Kyari, has charged members of the Board of the NNPC Greenfield Refinery Limited (NGRL), to explore all available options to bring an end to the current challenge of petroleum products importation.

A statement today, August 19 by Garba Deen Muhammad, Group General Manager Group Public Affairs Division Nigerian National Petroleum Corporation NNPC, quoted Mallam Kyari as having spoken today while inaugurating the Board of the newly incorporated subsidiary of the Corporation, NNPC Greenfield Refinery Limited (NGRL), at the NNPC Towers, Abuja.

The Group Managing Director, who is also the Chairman of the NGRL Board, challenged members of the Board to focus on profitability in order to remain afloat and avoid liquidation.

“As a business, this is a big opportunity for us and this company’s balance sheet must change positively. Going forward, with the Petroleum Industry Act (PIA), I can tell you that if you continue to post negative for three years, you are out. So, there is really no excuse.”

Mallam Kyari advised the Board and Management Team of the new company to set up a proper structure with the require skills, technology and financing to drive the company’s operations, adding that he is optimistic that the company would be able to achieve its mandate.

“Our company must grow and we can’t do well except we are able to process our production whether it is the liquid or gas. If we don’t monetize it then we have done nothing. This is really a new chapter and we are committed to making it work.”

The NNPC helmsman said that all the Corporation’s initiatives in the areas of new refineries, condensate refineries and equity acquisition in credible private refineries were geared towards ensuring energy security for the country.

In his remarks, the Alternate Chairman of the Board and Group Executive Director, Refinery and Petrochemicals, Engr. Mustapha Yakubu, said that the operations of the company would be guided by the principles of cost effectiveness in line with the new Petroleum Industry Act (PIA), saying that profitability would be the key focus.

Speaking in similar vein, the Group General Manager, Greenfield Refineries and Project Division (GRPD) and Managing Director of the NGRL, Engr. Bege Talson, said that the Division is working with third party investors to establish greenfield, modular and condensate refineries with a combined capacity of 250,000barrels per stream day (bpsd).

He pledged his team’s commitment to run the company profitably.

The NNPC Greenfield Refinery Limited is a subsidiary of the Corporation, set up in December 2020 with a mandate to oversee the establishment and operation of new refineries.

Other members of the Board include Group Executive Director, Finance & Accounts, Umar Ajiya; Managing Director of the Nigerian Gas Company (NGC), Engr. Oluwaseyi Omotowa; Managing Director of NNPC Retail, Mrs. Elizabeth Aliyuda; Managing Director of the Nigerian Petroleum Development Company (NPDC), Muhammad Ali-Zarah; and Tolulope Olubommo as Company Secretary and Legal Adviser.

Nigeria’s Minister of Niger Delta Affairs, Godswill Akpabio has said that the recent Presidential assent to the Petroleum Industry Bill, making it an Act, will bring to an end, decades of cheating of Niger Delta host communities by “big people” in government.

“The Petroleum Industry Act (PIA), when implemented, is going to assuage the feelings of the people of the host communities because they never had half a percent when oil was discovered in 1956 in Olobri.”

Senator Akpabio, who spoke today, August 19, to newsmen at the Presidential villa, Abuja about the performances of his ministry, said that the Bill had dragged on for too long because of what those who have been benefiting from the wrong system to the detriment of the host communities.

“My prayer is that the people would see this as a major step. People are arguing about percentages, I am not interested in that. We would manage this 3% but the major thing is to use it well.

“Even the small percentage that used to come to the NDDC, at least, they did not utilize it well. I believe the host communities would list out their problems, come together in unity and justify this action of Mr president and this action of Nigerians.

“This one is going directly to the host communities. We will do a lot of sensitization from the ministry, visit the people.

“The problem of the host community fund is not the percentage neither is the problem money. But how the money will be utilized judiciously and the same time, in a way where this is no acrimony. I don’t want that will break or cause communal clashes.

“So, I believe strongly as a ministry that is responsible for the peace in the region, we will take interest in how certain decisions are made as to who is a host community and who are those that should manage the fund.

“The law would have provided for this but at the same time, human being must also assist in the law in such a way that there is no acrimony.”

The Minister insisted that what is important is not the percentage, saying that some communities could make do with any percentage so far it would enable them to do basic human needs, such as solar powered toilet, drinking water, water tankers supplying.

He said that now with the PIA, the communities would be able to do certain things for themselves without waiting on oil companies, the federal government or the state to do it for them.

“When we look at the Act and know the composition of those who should be in charge of the money, we will also make our inputs. And it should be mostly project based. It shouldn’t be like a normal contract. It should almost be like direct labour. It is a major leap forward.

“Today, majority of Niger Deltans are very happy that the government has decided to deal with the host communities directly. This one will touch their lives directly. I also know that some communities will fight but of course,  it is expected. Most of those things would be settled.”

President Muhammadu Buhari has painted a regretful picture of how Nigeria had lost a whopping $50 Billion over the last ten years as a result of Foot- dragging in the passage of the Petroleum Industry Bill.

“We are all aware that Past Administrations have identified the need to further align the industry for global competitiveness, but there was lack of political will to actualize this needed transformation.

“This lack of progress has stagnated the growth of the industry and the prosperity of our economy. In the past ten years, Nigeria has lost an estimated US$50billion worth of investments due to uncertainty created by the non-passage of the PIB.”

The President, in his remarks before finally passing the Bill, known as Petroleum Industry Act 2021 today, said that the passage marked decades of uncertainty and under-investment in the petroleum industry.

“As part of this administration’s commitment to building a competitive and resilient petroleum industry that will attract investment, improve our revenue base, create jobs and support our economic diversification agenda.

“As a Nation that depends on oil resources for the development of other sectors, Nigeria runs a Petroleum Industry that is governed largely by laws enacted over 50 years ago such as the principal legislation; the Petroleum Act of 1969 and other obsolete legislations.”

President Buhari believed that the passage of the Petroleum Industry Bill will help  Nigeria to attract investments across the oil and gas value chain.

“In view of the value our Nation and investors will derive from a stable fiscal framework for the oil and gas industry, our Administration has found it necessary to work with the two Chambers of the National Assembly to ensure the passage of the PIB.

“The Presidential assent of the Petroleum industry bill on 16th August 2021 to “Petroleum Industry Act 2021” marked the beginning of the journey towards a competitive and resilient petroleum industry that will attract investments to support our Economic Recovery and Growth Plan.

He said that the Act would create a regulatory environment that would ensure efficiency and accountability across the oil and gas value chain and reposition NNPC to a commercially driven National Petroleum Company that is accountable to the Federation.

The Act, the President added, would provide for a direct benefit framework that will enable sustainable development of Host Communities.

He appealed to the host communities to look carefully at the contents of the Bill which in the implementation will bring real and lasting benefits to them.

Buhari said that the Act also provides for deliberate end to gas flaring which would facilitate the attainment of Nigeria’s Nationally Determined Contributions of the Paris Agreement through a funding mechanism to support gas flare out project in host communities.

“Similarly, it acknowledges global energy transition and made necessary provisions for NNPC to invest in renewable energy.

“To consolidate the commitment of this administration to delivering the value proposition of this law, I have approved an implementation framework commencing immediately to ensure the industry envisaged in the new law begins to take shape.

“The implementation process to be headed by the Hon Minister of State, Petroleum Resources is hereby tasked with the completion of the implementation of this act within 12 months.

“I am therefore directing all relevant Ministries, Departments and Agencies of government to fully cooperate in ensuring the successful and timely implementation of this law.”

The President commended the leadership of the 9th Assembly for their continued pursuit of our national aspiration and demonstration of mutual harmony with the Executive in the pursuit of a patriotic outcome in the passage of the PIB.

He also commended the entire team in the executive that worked tirelessly to ensure the delivery of this strategic legislation for our country, even as he thanked Nigerians and other industry stakeholders for their contributions and support in achieving this historic landmark.