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NNPC committed to the diversification of the Nigerian Economy

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UGO AMADI

The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mallam Mele K. Kyari , has reiterated  the corporations commitment  to the diversification of the Nigerian Economy, as Nigeria is ready to capture more LNG market with the FID of the NLNG Train 7.

Also,  NNPC  has urged  investors to key into the revamp and expansion of domestic refining capacity in order to support the growth of the downstream sector and guaranty energy security to the nation

Speaking at the  4th Sub-Saharan Africa International Petroleum Exhibition and Conference, organized by the Petroleum Technology Association of Nigeria (PETAN), with the theme “Oil & Gas as an Enabler for Economic Transformation in Sub Saharan Africa” the GMD who was represented by the Chief Operating Officer (COO), Gas and Power, NNPC, Yusuf Usman said the oil and gas industry will continue to be our major foreign exchange in years to come, but that will not distract us from our resolve to rechanneled earnings from oil towards the development of the non-oil sector of our economy.

According to Kyari , Oil and gas resources have remained the major source of revenue that has kept the wheels of Nigeria moving for over five  decades, likewise it has served as key enabler to the economic transformation of many Nations like Norway, Saudi Arabia, UAE, Qatar and many other oil resources dependent Nations.

‘’’It is not a new story that most resource dependent Nations rely on their dominant natural resource to drive other key economic initiatives and activities. In Nigeria and many other countries represented at this conference it is about OIL. The theme therefore speaks to the right audience at the right time and in the right place.’’ He stated

He warned  that even though oil is our mainstay, it is  nothing to brag about’’ it is not a good story to share, because experience has taught us that any slight disruption in oil market fundamentals would mean subjugating the functions of the Central Nervous System of the Nigerian economy.

He expressed that  it is expected that Nigeria should work hard to diversify the economy away from over depending on oil revenues in order to take out the risk of market fluctuation from the fiscal equation.

He affirmed that the current Government under the leadership of President Muhammadu Buhari has made it a priority to ensure revenues from oil and gas resources are utilized to support the emergence and growth of other non-oil sectors of the economy.

He said that NNPC as a national Oil Company has been repositioned to support the vision of Mr. President for economic diversification. Stressing that in the upstream, Nigeria is increasing oil production from 2.3million bbl/day to 3million bbl/day and at the same time working with partners to significantly reduce  cost per barrel in order to improve the flow of the needed revenue to support economic diversification.

He noted that the recent passage of the Deep Offshore Act into law has set the industry on the path of growth. By that singular action, the country has succeeded in creating  stability and confidence around  hitherto unpredictable fiscal system, and will attract the needed investment in the upstream and support the realization of  the nation’s  aspiration to increase the  National oil reserve to 40billion barrels by 2025.

Also he said that  NNPC is also expanding its domestic gas footprint with the delivery of the Escravos-Lagos Pipeline System (ELPS) II gas pipeline to double capacity from 1.1BSCF to 2.2BSCF, the OB3 gas pipeline that connects East and the West and the construction of the Ajaokuta-Kaduna-Kano gas pipeline planned to commence in Q2 2020.

‘’We are encouraging private investors to join this smooth moving train that traverses the oil and gas value chain to create more value and job opportunities to out teaming youth.Today Nigeria is still a net importer of petroleum products due to the current state of our refineries and the long absence of private investment in the refining sector. He stated

‘’We are progressing with the establishment of condensate refineries to fast-track domestic supply of petroleum products. In the same vein, the corporation would support the actualization of the 650Kbbl/day Dangote Refinery, as well as other private initiatives along this line. Our plan is for Nigeria to become a net exporter of petroleum products by 2023.’’

He said that  NNPC is leveraging technology and innovation to achieve the goal of building an Energy Company of Global Excellence with strong committement to deepening the culture of Transparency, Accountability and Performance Excellence in the conduct of her business.

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