- Port Harcourt refinery working, but won’t reduce petrol price — PENGASSAN
- NNPCL reaffirms commitment to local content
- Why Nigeria will continue to produce fossil fuel – Lokpobiri
The Senate, on Tuesday, approved the 2025–2027 Medium Term Expenditure Framework and Fiscal Strategy Paper submitted earlier by President Bola Tinubu.
The President is expected to present the 2025 Appropriation Bill to the National Assembly this week.
This decision was based on the adoption of a report presented during plenary by the Senate’s joint Committees on Finance and National Planning and Economic Affairs, led by Senator Sani Musa (APC, Niger East).
This was even as the Red Chamber mandated its Committees on Finance, Petroleum (Upstream) and Petroleum (Downstream) as well as Gas to investigate reports from the Revenue Mobilisation, Allocation and Fiscal Responsibility Commission, alleging that the Nigerian National Petroleum Company Limited withheld N8.48trn as claimed subsidies for petrol.
It noted that the investigation would address the Nigeria Extractive Industries Transparency Initiative’s report, stating that NNPCL failed to remit $2bn (N3.6trn) in taxes to the Federal Government.
The Senate further directed its committees to verify the total cumulative amount of unremitted revenue (under-recovery) from the sale of Premium Motor Spirit also known as petrol by the NNPCL between 2020 and 2023.
It, however, directed the relevant committees to carry out an in-depth investigation of such agreements by the NNPCL, Nigerian Liquefied Natural Gas and Immigration Services with a view to reconciling remittances to the Federation Account.
In the three-year projections, the Senate pegged the exchange rate at N1, 400/$ for 2025, 2026, and 2027 respectively.
It also projected oil benchmark prices at $75, $76.2, and $75.3 per barrel for 2025, 2026, and 2027 respectively.
The Senate added that the three-year projections for domestic crude oil production had a significant increase from 1.78m bpd in the preceding year to 2.06, 2.10 and 2.35 for the subsequent years of 2025, 2026 and 2027, respectively.
It further projected Gross Domestic Product, GDP growth rates of 4.6 per cent, 4.4 per cent, and 5.5 per cent for 2025, 2026 and 2027.
The Red Chamber also projected the inflation rates at 15.75 per cent, 14.21 per cent, and 10.04 per cent for 2025, 2026, and 2027 respectively.
It, however, demanded a reduction in the petrol prices against the backdrop of the commencement of production at the Port Harcourt refinery.
The recommendations read, “The 2025 Federal Government of Nigeria budget proposed spending of N47.9trn of which N34.82trn is retained. New borrowings stood at N9.22trn, made up of both domestic and foreign borrowings.
“Capital expenditure is projected at N16.48trn with statutory transfers standing at N4.26 trn and sinking funds projected at N430.27bn.”
Speaking during the debate on the report, the chairman of the Senate Committee on Appropriations, Senator Solomon Adeola (APC Ogun West) referenced the Federal Government’s Compressed Natural Gas initiative as the underlying imperative for the adoption of the N1, 400 to one dollar.
“With the functioning of our refineries, the demand for Forex will drop. With the CNG initiative, Nigerians will have an option for your information if you leave Benin to Lagos the amount of fuel is about 130,000 but with CNG you can’t use more than N48, 000. Another issue to be addressed is the recurrent to-capital ratio which is very high,” he said.
In his contribution, a former Senate Leader, Senator Yahaya Abdullahi (PDP Kebbi North), stressed the need to support the manufacturing industries if the projections of the MTEF are to be achieved.
In his remarks, the Senate President, Senator Godswill Akpabio, commended the chairman and members of the joint committees for their in-depth analysis and general good work done on the document.
Senator Jimoh Ibrahim (APC, Ondo South) in his contribution called for the adoption of transactional tax.
He lamented that the rich in Nigeria aren’t paying adequate tax.
He said, “They need to pay more. It is comfortable for them to pay. I know they say they generate employment but they need to pay more for their luxury assets.
“This is the area we should develop. I am looking at laws that will actually police transactional costs. Government provides incentives for your business. What we are looking at is profit from your investment.
“The GDP to tax ratio is 18%. About 72% left out of the tax net. We should not worry that 72% are not in the tax net. I am not saying we should go and tax the poor population but the rich need to do more in these difficult times.”
In his remarks, the chairman of the Senate Committee on Public Accounts, Aliyu Wadada (SDP, Nasarawa West), said, “The committee has written both NNPC and the federal inland revenue service.
“Federal Inland Revenue Service responded with documents that have been tipexed and handwritten and acclaimed to be from JP Morgan, this is extremely unacceptable and all efforts for the need to be done has not been achieved.”
He added, “On Port Harcourt refinery, our colleagues were there, they saw what they saw but the question I have is from the day NNPC said Port Harcourt Refinery has commenced operation, how many trucks have been able to lift products from Port Harcourt Refinery.
“Technically, I have this for this senate to know about Port Harcourt Refinery, and unless and until NNPCL answers this question, we will not be bamboozled into rushing to commending NNPC on Port Harcourt Refinery.”
Port Harcourt refinery working, but won’t reduce petrol price — PENGASSAN
However, the Petroleum and Natural Gas Senior Staff Association of Nigeria has confirmed that the Port Harcourt refinery, with a production capacity of 60,000 barrels per day, is operational and currently producing various refined petroleum products, including diesel, kerosene, and petrol.
This update was provided by the PENGASSAN National President, Festus Osifo, during the association’s National Executive Council Meeting held on Tuesday in Abuja, dispelling any doubts about the refinery’s operations.
Despite the refinery’s much-anticipated commencement of production, there has been considerable debate over its functionality.
However, Osifo reassured attendees that the facility is indeed operational, although additional maintenance is still needed to complete its full functionality.
Osifo also clarified that the refinery’s operations would not lead to a reduction in petrol prices, highlighting that the current value of the naira against foreign currency plays a significant role in determining the price of refined products.
He stated, “The confirmation I have today is that the refinery is working. However, I need to explain the refining process. First, we appreciate Nigerians for holding the government accountable, as we must ensure the workability of our assets. We cannot just accept everything the government tells us; we must verify it.
“We are also pleased with the media’s efforts to keep the government accountable regarding the refinery’s progress. We conducted checks with our members working there. The fractional distillation unit, commonly known as the CDU, processes crude oil by heating it at different temperatures to produce various products.”
Osifo further explained that while the Port Harcourt refinery produces diesel, kerosene, and naphtha, the refining process for petrol is still incomplete. Maintenance is ongoing, and naphtha is currently being blended with other materials to produce petrol, but the unit that produces reformate, a key ingredient, is still being finished.
He emphasised that the operation of the refinery will create jobs and boost the economy, but will not reduce the cost of petroleum products due to the weak naira.
“The greatest challenge is the weakness of our currency.
“With the naira trading at $1 to N1, 700, the cost of goods, including petroleum products, will remain high,” Osifo explained.
NNPCL reaffirms commitment to local content
Meanwhile, the Nigerian National Petroleum Company Limited has reiterated its commitment to advancing local content development in Nigeria’s energy sector and drive sustainable growth of the industry.
This commitment was made by the Group Chief Executive Officer, Mele Kyari, at the ongoing 13th Practical Nigerian Content Forum in Yenagoa, Bayelsa State.
According to a statement signed by the NNPCL Chief Corporate Communications Officer, Femi Soneye, on Tuesday, local content empowers domestic companies and fosters innovation, ensuring a strong oil and gas sector that meets both local and global demands.
Kyari, who was represented by the Executive Vice President, Upstream, Udobong Ntia, emphasised the significance of the PNC Forum as a unique opportunity for stakeholders to reflect on progress, share best practices and identify strategic growth opportunities.
He noted that the landmark Nigerian Oil and Gas Industry Content Development Act of 2010 had ushered in a transformative era for local businesses, positioning them to compete on a global scale.
“The PNC has spawned several initiatives to address stakeholder concerns and maximize the benefits of our rich resources. We have a shared responsibility to empower local firms and drive innovation to ensure a robust oil and gas sector that meets both local and global demands,” Kyari stated.
The GCEO further emphasised the importance of fostering local capabilities, embracing advanced technologies, and nurturing partnerships to create a sustainable energy future for Nigeria.
Highlighting the ongoing commitment of NNPC Limited to local content, Kyari referenced the recent Presidential Directive on Local Content Compliance Requirements for 2024, stressing that it was a testament to the Federal Government’s commitment to prioritizing local content as a key element of national strategy.
“This directive should make us all feel secure and committed to the local content strategy,” Kyari added.
He also detailed NNPC Ltd’s strategic initiatives aimed at enhancing the capabilities of local firms, including the restructuring of the NNPC Exploration and Production Ltd and the positioning of the NNPC Engineering and Technical Company Ltd as a full-scale engineering company.
He encouraged participants at the conference to engage actively, share insights, and forge connections that would accelerate the journey towards energy sufficiency in Nigeria.
“Together, we can cultivate a vibrant local content ecosystem that benefits all Nigerians,” he concluded.
Why Nigeria will continue to produce fossil fuels – Lokpobiri
In the same vein, in spite of the ongoing global energy transition from fossil fuels to renewable energy, Nigeria will continue to produce fossil fuels, the Minister of State for Petroleum (Oil), Senator Heineken Lokpobiri, has stated.
Lokpobiri who made the assertion on Tuesday, while speaking at the 13th Practical Nigerian Content organised by the Nigerian Content Development and Monitoring Board in Yenagoa, Bayelsa State capital, said Nigeria already has enough market for fossil fuels in Africa.
His remarks, which highlighted the theme of the programme, ‘Deepening the Next Frontier for Nigerian Content Implementation’, pointed out that no country in the world will stop the production of fossil fuels when there is still a market for it.
According to him, even a nation that champions energy transition like the United Kingdom awarded over 100 licences to companies to continue crude oil exploration.
He said, “All the nations that say we should stop the production of fossil fuel, we will never stop the production in Nigeria; no country in the world will stop it.
“Just in 2023, the United Kingdom contributed 4.8 per cent of global emissions, higher than the entire OPEC countries put together. The entire African continent together contributes about three per cent, but the UK contributes 4.8 per cent, and they gave over 100 licences to new companies for new exploration.
“America is the highest producer of fossil fuels, so why should we stop? Those who are telling us to stop are themselves not stopping, so we should know that it is about politics.
“Let me also use this opportunity to challenge the industry that with the emergence of Trump, the price of oil may be battered. What I want us to do is to increase our production. Africa already has enough market, we can produce enough fuel to supply the West African region and the entire Africa, but our biggest challenge has to do with funding.”
The Acting Governor of Bayelsa State, Senator Lawrence Ewhrudjakpo, challenged NCDMB to engage grassroots stakeholders by incorporating diverse perspectives to ensure that their strategies are inclusive and reflective of the aspirations of all Nigerians.
Ewhrudjakpo urged participants at the forum to move beyond dialogue to implementation with a view to ensuring that the outcomes of the conference drove real and meaningful change in the oil and gas industry.
He described the theme of the Practical Nigerian Content as forward-looking and called on the participants to engage actively with a focus on transforming ideas into actionable strategies that would yield lasting impacts.
He said, “Leveraging technology and empowering local talent will create a vibrant ecosystem that promotes creativity, entrepreneurship and sustainable development.”
While commending NCDMB for their leadership and commitment to advancing Nigerian content that has established a framework for excellence and innovation, he assured that “Bayelsa remains steadfast in its collaboration with the NCDMB and other credible partners across various sectors such as energy, agriculture, healthcare and tourism which align with the state’s ASSURED Prosperity Agenda.
“Let us focus on building resilient and sustainable frameworks that enable communities to actively participate in emerging sectors, particularly the digital economy. This will ensure shared prosperity and a future where no one is left behind.
“Together, we can redefine the landscape of Nigerian content implementation. By fostering innovation, inclusivity, and strategic partnerships, we can unlock new frontiers for growth and sustainable development.”
In his keynote address, the Executive Secretary, NCDMB, Felix Ogbe, highlighted some of the milestones achieved in the last seven years including the commissioning of the new library at the Niger Delta University, Amassoma in partnership with Shell Petroleum Development Company and other joint partners.
Others include the commissioning of the Kwale Gas Gathering and injection facility in Delta State, the commissioning of 150 LPG in Kaduna State as well as the inauguration of the gas leak detection facility in Abuja as some of the achievements recorded.
Also speaking, the Minister of State for Petroleum (Gas), Ekperikpe Ekpo, urged local businesses in the country to invest in Compressed Natural Gas, saying gas will be the mainstay of the economy after the energy transition.
Ekpo said, “Gas will be the mainstay of Nigeria’s energy shift, and we are giving local businesses a chance to engage in gas distribution, processing and power generation. The probable replacement for PMS has been determined to be natural gas in the form of CNG.
“Let me reiterate this administration’s unwavering commitment to advancing local content as a cornerstone of our energy strategy. Together, we have the opportunity to build an energy industry that empowers Nigerians, strengthens our economy and contributes to a sustainable future.”
In his goodwill message, Omar Farouk Ibrahim of the African Energy Bank said Africa should not be deterred by the global energy transition to renewable energy and that the objective of establishing the bank was to continue to fund investments in oil and gas.
Earlier, Ogbe said the board had achieved 56 per cent in Nigerian Content implementation level in 2024 compared to 26 per cent in 2016.
Ogbe cited some achievements of the board including the commissioning of Amal Technologies in Idu, Abuja and the Kwale Gas Gathering facility in Delta State; approval of 312 Nigerian Content Plans and the issuance of 402 Nigerian Content Compliance Certificates amongst others.
The conference continues on Wednesday with several panel sessions.
