The Major Energy Marketers Association of Nigeria (MEMAN) says the concessioning of Nigerian National Petroleum Company Ltd. (NNPCL) refineries is the most effective way to enhance domestic refining capacity.
Its Executive Secretary, Mr Clement Isong, in an interview with the News Agency of Nigeria (NAN), on Tuesday in Lagos, said that this approach would also help to meet the country’s local fuel demand.
He said that the Public-Private Partnership (PPP) model could be used to revitalise these refineries.
This approach, he noted, would attract private sector investment and improve operational efficiency.
Isong also suggested encouraging local refineries to adopt a toll-refining model, where oil producers could refine their crude locally for a fee.
He said that the practice had proven successful in other markets.
To ensure a level playing field, the MEMAN boss advocated for full price deregulation in the downstream sector, to allow operators to recover costs and invest in infrastructure.
He also said that providing incentives like tax breaks and low-interest loans for clean energy infrastructure would diversify energy options and enhance energy security.
In the upstream sector, Isong called for increased investment in exploration and production.
“Offering favourable terms to international investors with substantial financial resources could raise production levels to between three and four million barrels per day, while ensuring the country fully benefits from its oil reserves,” he stated.
He further advocated for policies that prioritise local refining in the midstream and downstream sectors.
Isong suggested that encouraging domestic refining would create more value and reduce reliance on imported refined products.
For refineries that cannot be privatised, Isong recommended handing them over to professional managers to improve efficiency and foster competition.
He explained that supporting new refineries like Dangote and BUA, along with rehabilitating NNPC refineries, would significantly enhance local refining capacity.
Addressing oil and gas exploration, Isong noted that Nigeria’s oil and gas sector remained a critical pillar of the economy, significantly contributing to national infrastructure and global standing.
The MEMAN chief, however, said that challenges still persist, particularly regarding energy access, sustainability and infrastructure development.
Isong said, “Full deregulation of petroleum prices is essential to align with international market realities.
“Fixed pricing has led to product scarcity, substandard quality, and market inefficiencies.
“While progress has been made, much work remains. This is to ensure energy remains affordable for Nigerians while maintaining sustainability for sector operators.” (NAN)
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