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Bold vision promises new dawn for Nigeria’s ailing petrochemical industry
Estimated to hold 37 billion barrels of proven oil reserves, Nigeria is the second biggest oil-rich country in Africa, after Libya. The exploitation of these resources has been in the hands of the Nigerian National Petroleum Corporation (NNPC) that was established in 1977 as a merger of the Nigerian National Oil Corporation and the Federal Ministry of Mines and Steel. NNPC by law manages the joint venture between the Nigerian Government and international oil companies such as Shell, Agip, ExxonMobil, Total and Chevron.
Despite its rich resources, at present Nigeria’s state-dominated oil industry is declining, afflicted by systemic corruption, starved for international investment, and hit hard by weak oil prices. Despite that malaise, oil remains the country’s chief source of income.
A choice of paths
What many considered a watershed moment for the industry occurred earlier this year in the country’s election with two conflicting strategies for the development of the industry put forward by the two candidates.
The incumbent, Muhammadu Buhari’s planned to retain a nationalized oil industry under the NNPC banner while the vision of his opponent, Atiku Abubakar, was to sell off aging refineries to private buyers to liberalise the economy. In the end Buhari won a tight contest.
The importance of the oil and gas sector for the state cannot be underestimated with more than half of its revenue along with 85 per cent of its export revenue coming from the sector. Despite the 40 billion barrels of oil under its control, Nigeria’s ageing infrastructure can only produce around 2.5 million barrels of crude oil per day.
Adding to this malady is the state of its mid-stream and downstream infrastructure that many believe is in even worse condition than its upstream assets. The refineries dotted around the Niger Delta region are at present producing less than half of the 500,000 barrel per day capacity, with this figure dropping to almost ten per cent late last year.
New beginnings for NNPC
The man charged with implementing the president’s policy is Mallam Mele Kolo Kyari, who took on the role of group managing director of the Nigerian National Petroleum Corporation (NNPC) early this year. He quickly vowed to reverse the trend of petroleum imports into Nigeria by improving the existing refineries and encouraging private sector investment in the refineries.
“We must end the trend of fuel importation as an oil producing country,” he said at a press conference shortly after taking on the role. “We will deliver on the rehabilitation of the four refineries within the life of this administration and support the private sector to build refineries. We will support the Dangote refinery to come on stream on schedule and we will transform Nigeria into a net exporter of petroleum products by 2023”.
He added that the government’s target of raising crude oil production and reserves to three million barrels per day and 40 billion barrels respectively was possible and that he would galvanise the corporation to achieve it by 2023.
When it comes to rooting out the corruption that has plagued the industry in Nigeria he pointed out how much NNPC had changed over the past three years from the old image of a corruption-laden organisation, stressing that he would continue to entrench the culture of accountability in the affairs of the corporation.
“We are going to work to remove every element of discretion from our processes, because discretion is one of the greatest enablers of corruption”, he said. “NNPC will not be opaque, we’ll be transparent to all so that at the end of the day everyone will be in a position to assess us and say what we have done right or wrong”.
Support from OPEC
The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC), Mohammed Sanusi Barkindo, has commended the NNPC for its ongoing reforms aimed at changing the fortunes of the corporation for the better.
“I am glad that you continue to march on with your projects despite the downturn in the Industry, he said. “We have seen the Industry globally suffer in terms of contraction in investment which affected capacity. You have not only been able to stay on course, but you also continue with these projects which are critical for the development of the corporation and the industry in Nigeria.”
“To lead such a sensitive and capital-intensive industry like oil and gas, you must have transparency and accountability as one of your core principles in order to drive change. I am glad I have known Mele Kyari for a very long time. He is a very capable and straightforward individual with a high level of integrity even as a very junior officer. So, he has a track record. I remain confident that together with his team, and with the support of government, he will accomplish the task”.
Building a Nigerian giant
Key to this strategy of reducing imports is the Dangote refinery that is under construction near Lagos. The 650,000 barrels per day (bpd) integrated refinery and petrochemical project will be Africa’s biggest oil refinery and the world’s biggest single-train facility upon completion in 2020. The facility will be able to process a variety of light and medium grades of crude to produce Euro-V quality clean fuels including gasoline and diesel as well as jet fuel and polypropylene.
Nigeria in focus at Africa Oil Week
Relations between South Africa and Nigeria have been strained in recent months after several days of riots in South Africa in September that mainly targeted foreign-owned, including Nigerian, businesses.
But following a visit to South Africa by Nigeria’s President Muhammadu Buhari tensions have eased. A further sign of the improving relationship is the visit of Nigeria’s Minister of State for Petroleum Resources, Timipre Sylva, to Africa Oil Week (Africa-OilWeek.com), the minister proclaiming himself being excited to be travelling to South Africa.
As the largest upstream event on the continent, Africa Oil Week has enjoyed attendance from the industry’s highest-level decision makers for over 25 years. This year is no different, with Nigeria’s brand new NPCC GMD making his international debut at the 2019 conference in Cape Town this November (4-8).
Mallam Melee Kyari will be setting out the future vision of the NNPC under his leadership and participating in a session titled ‘Atlantic Transform Margin (Liberia to Nigeria)’, where he will provide a deep insight into the current operating landscape in some of the most highly sought-after regions.
Leaders and stakeholders of the All Progressives Congress (APC) in Oyo South Senatorial District have endorsed a member of the House of Representatives, Aderemi Oseni, as their consensus candidate for the 2027 senatorial election.
The endorsement was announced on Wednesday at a stakeholders’ meeting held at Alice Hall, Ibadan, with party leaders, stakeholders, local government chairmen and state executive members from the nine local government areas in attendance.
The councils represented at the meeting are Ibadan North, Ibadan North-East, Ibadan North-West, Ibadan South-East, Ibadan South-West, Ibarapa Central, Ibarapa East, Ibarapa North and Ido.
The stakeholders expressed satisfaction with Oseni’s aspiration, describing it as timely, credible and anchored on tested leadership and grassroots appeal.
Those present at the meeting included Chief Timothy Jolaoso (Ibarapa East); Alhaji Kamorudeen Ajisafe (Ido); Chief Abdulrauf Bello (Ido); Alhaji Muili Oluokun (Ibadan North-West); Alhaji Mufutau Adisa (Ibadan South-East); Alhaji Bello Oladeji (Ibadan North); Prince Gbade Lana (Ibadan North-East); Engr. Olatunji (Ibadan South-West); Comrade Wale Gbadamosi (Ibarapa North); and Alhaja Moji Adetona (Ibarapa Central).
Other party officials in attendance were the senatorial chairman, Alhaji Mojeed Adebayo; the secretary, Fatai Adesina; Welfare Officer, Sunday Babalola; Deputy Women Leader, Alhaja Fatimah Hassan; Auditor, Alhaja Tinu Adigun; Youth Leader, Lekan Adebayo; Ex-Officio member, Kola Amoo; Treasurer, Lateef Ajiboye; and Senatorial Youth Leader, Olalekan Olowe.
A chieftain of the party in Ibadan North Local Government, Hon. Shina Alabi, moved the motion for the lawmaker’s endorsement, which was seconded and unanimously adopted by the stakeholders.
Alabi said Oseni’s decision to abide by President Bola Tinubu’s directive to step down his governorship ambition for the senatorial race underscored his loyalty and commitment to party unity.
He said, “Hon. Oseni has demonstrated uncommon commitment to the welfare of the people. His leadership style is inclusive, responsive and development-driven. We are convinced that his emergence as the APC candidate for Oyo South Senatorial District will strengthen the party’s chances and guarantee effective representation.”
He also urged party members to remain united and rally behind credible aspirants with proven capacity and electoral value.
In his remarks, Hon. Aderemi Oseni said his decision to pursue the senatorial seat followed the presidential directives, noting that he accepted the decision in the interest of party cohesion, progress and stability. He recalled that he had earlier prepared for the Oyo South senatorial race in the 2023 general elections, having already purchased the nomination and expression of interest forms as part of an arrangement reached, before stepping down following appeals by party leaders.
The lawmaker, who chairs the House Committee on the Federal Roads Maintenance Agency (FERMA), said the party must close ranks to reclaim political dominance in the senatorial district.
According to him, “There is a huge task ahead, especially with several House of Representatives seats in the district currently held by the opposition. We must work together, mobilise effectively and secure victory for our party and leader, President Bola Tinubu”.
Oseni thanked party leaders and stakeholders for the confidence reposed in him and assured them of his commitment to advancing the interests of Oyo South Senatorial District.
The meeting also had representatives from all nine local government areas, with about 10 leaders from each council in attendance.
The lawmaker representing Akinyele/Lagelu Federal Constituency of Oyo State, Olafisoye Akinmoyede, has denied allegations of violence at the All Progressives Congress (APC) state secretariat, describing claims that he assaulted a party member as false and politically motivated.
An online platform, IMPARTNEWSNETWORK, had alleged that Akinmoyede assaulted one Gafar Oyebade during a meeting convened by the state chairman of the party, Alake Adeyemo, to resolve issues surrounding the executive list of the APC in Lagelu Local Government Area.
However, Akinmoyede, in a statement on Tuesday, said the meeting was peaceful and attended by key members of the state executive, including the chairman, deputy chairman, and secretary, who witnessed the proceedings.
He clarified that contrary to Oyebade’s claim of being the party secretary, the official list presented by the state leadership recognised him as the Public Relations Officer.
According to the lawmaker, following the clarification, the state executive directed the Lagelu Local Government chairman, Fatai Awoyoola, to proceed with the swearing-in of other party officials.
Akinmoyede also faulted attempts to link the incident with the 2019 killing of a former federal lawmaker, noting that a court of competent jurisdiction had already ruled on the matter.
He said, “In Suit No. I/70c/2019, delivered by Justice Mufutau Adegbola on January 23, 2020, all those accused were discharged and acquitted.”
The lawmaker expressed concern over what he described as a deliberate attempt to mislead the public, alleging that Oyebade, a public school teacher under the Oyo State Government, should not be involved in partisan politics.
He described the allegation as a “recycled script” aimed at tarnishing his image ahead of political activities, urging constituents to remain calm.
Akinmoyede also called on journalists to verify information before publication and urged security agencies to take action against individuals who file false reports.
“These tactics surface every election cycle. Those behind them should learn to accept the outcomes of political processes. They failed before and will fail again. Power comes from God,” he added.
The lawmaker representing Akinyele/Lagelu Federal Constituency in the House of Representatives, Hon. Olafisoye Akinmoyede, has denied allegations of assault levelled against him by a member of the All Progressives Congress (APC) in Lagelu Local Government Area, Mr. Gafar Oyebade.
Akinmoyede described the allegation as “false” and “a lie taken too far,” insisting that no physical altercation occurred.
The denial was contained in a statement issued on Monday by his Legislative Aide, Dr. Isiaq Akintunde.
Oyebade had alleged that he was hospitalised following a confrontation during a meeting held at the office of the state party chairman in Oke-Ado, Ibadan, convened to resolve a leadership dispute in the local government.
But the federal lawmaker maintained that the meeting was peaceful and attended by top party officials.
“The meeting was convened to clarify Mr. Oyebade’s position within the local executive, and it was attended by the State Party Chairman, his deputy, the secretary, the publicity secretary, and other key state executives, all of whom witnessed the peaceful proceedings,” the statement read.
He added that contrary to Oyebade’s claim of being the party secretary, the official list presented by the Lagelu Local Government Party Chairman, Hon. Fatai Awoyoola, identified him as the Public Relations Officer.
According to Akinmoyede, the state executive thereafter directed Awoyoola to proceed with the swearing-in of the remaining members of the local government executive.
The lawmaker accused Oyebade of fabricating the allegation to advance political interests.
“I wonder why Mr. Gafar Oyebade, a secondary school teacher, would claim he was assaulted in the presence of the State Executive. This is an attempt to justify money allegedly collected from an aspirant to tarnish my image,” he said.
Akinmoyede further claimed that Oyebade was seen walking freely after the meeting and was not hospitalised as alleged.
He also raised concerns over Oyebade’s involvement in partisan politics, noting that civil servants are restricted from active participation in political activities.
The lawmaker called on security agencies and the media to investigate the incident at the party’s Oke-Ado office to ascertain the veracity of the claims.
Efforts to reach Oyebade for comments were unsuccessful as of the time of filing this report.
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