Chairman IPPG, Abdulrazaq Isa, has said that Nigeria current crude oil production of 1.35 million barrels per day continues to pose an existential threat to Nigeria’s socio-economic wellbeing and ability to provide feedstock for the domestic refineries.
Isa who is also the chairman, Waltersmith Petroman Oil Limited, said Nigeria should have no business importing crude oil to meet domestic refinery feedstock given the hydrocarbon resources at our disposal.
Speaking at the Crude Oil Refiners Association of Nigeria (CORAN) 2024 summit in Lagos, Tuesday, Isa said to address this challenge efforts should be geared to unlock incremental production of 500,000 barrels of oil per day and 1.5 MMscf of gas per day in the short to medium term.
“Ultimately, Nigeria’s domestic crude oil refining and petrochemical capacity must be sustained from our domestic crude oil and gas production in order to transform our country into a net exporter of refined petroleum and petrochemical products that will lay a strong foundation for the rapid industrialisation of the Nigerian economy whilst ensuring we are able to meet our export commitment to augment the much-needed foreign exchange earnings required for macro-economic stability.
Isa stated that the long-term aspiration of making Nigeria a net exporter of refined petroleum products is reality whose time has come with the private sector now fully leading the charge in the refining sector.
“At this juncture, I must recognise and specially commend Alhaji Aliko Dangote GCON, for moving us closer to this aspiration of a net exporter of petroleum products with the operational commencement of the game-changing and transformative Dangote Refinery”
He said the implementation of the Domestic Crude Oil Supply Obligation (DCSO) would serve as an avenue to guarantee availability and reliability of feedstock for all domestic refineries from our upstream sector on a Willing Seller Willing Buyer basis in compliance with the Petroleum Industry Act (PIA).
He described the recent presidential directive to NNPCL for sale of crude oil to all domestic refineries in Naira as a significant step in the right direction adding that by pricing allocated crude for domestic consumption in Naira, at a fixed exchange rate, guarantees that both the government and Nigerians benefit from petroleum products at the best possible value.
“This is a prime example of an innovative, business friendly and socio-economically impactful policy that will spur national development”, he stated
