The Nigeria Extractive Industries Transparency Initiative (NEITI),has urged the Nigerian National Petroleum Company Limited to expedite action on the second phase of the Port Harcourt Refinery and the ongoing rehabilitation of the Kaduna refinery.
Obiageli Onuorah,Acting Director, Communication and Stakeholders Management,NEITI,conveyed this in a statement made available to Premium News.
She said the development should be followed closely with the restoration of the phase 1 of the Port Harcourt refinery to optimal capacity in the ongoing rehabilitation efforts.
The statement quoted NEITI as congratulating the Nigerian National Petroleum Company Limited (NNPCL) 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.
It described the accomplishments as representing significant strides towards addressing Nigeria’s long-standing dependence on imported petroleum products.
NEITI further noted that the operationalisation of these refineries is a monumental step towards achieving energy self-sufficiency and fostering economic sustainability.
According to the statement,by reducing the costs associated with fuel importation, this milestone will positively impact Nigeria’s foreign exchange reserves and create a ripple effect across key sectors of the economy.
It acknowledged that the revitalization 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 Sq so nacanational priorities like health, mm education, and infrastructure.
The statement recalled that NEITI through its Industry Reports for the Oil and Gas 2023 released recently disclosed that between 2006-2023 (in 18 years), a total of N15.87 Trillion has been expended as under recovery through price differentials (Subsidy) with 2022 recording the highest sum of N4.714 Trillion.
It said 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%) 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 expressed delight that the huge payments expended on subsidy will hence forth be available to support national development, ongoing rebuilding of the national infrastructure and poverty reduction.
It added:”We commend the leadership of the NNPCL team for their resilience, dedication, and unwavering determination in executing this complex and challenging task. As stakeholders in Nigeria’s energy sector, NEITI said that it remains committed to supporting NNPCL’s efforts to ensure the long-term success of these 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 NNPCL to sustain and expand these gains in the national interest and Nigeria’s energy security”.
