NNPC Raises Concern Over Smuggling of Petroleum Product

Business, Uncategorized

Ibrahim Shehu FRCN

Nigerian National Petroleum Corporation (NNPC) has appealed to the National Assembly to assist it to tackle the perennial issue of smuggling.

Group Managing Director (GMD) of the corporation, Mr. Mele Kyari made the appeal at the ongoing interactive session on the 2020-2022 medium-term expenditure framework organised by the House of Representatives Committee on Finance in Abuja.

Mr. Kyari stated that NNPC had mobilised some Federal Agencies like the Nigeria Customs Service, the Economic and Financial Crimes Commission (EFCC), the Police, and the Civil Defence Corps among others, to find workable solutions to the menace.

On the propriety of establishing NNPC retail stations in neighbouring countries to curb the challenge of illegal haulage of petroleum products, the GMD said NNPC jettisoned the idea when it became imperative that the measure would be counterproductive.

He provided a base oil price scenario in the medium term which includes, $57 per barrel for 2022, $61 per barrel for 2023, and $62 per barrel for 2023.

Mr. Kyari explained that the assumptions were arrived at after a careful appraisal of the 3-year historical dated Brent Oil Price average of $59.07 per barrel premised on Platts Spot Prices.

Price growth is to be moderated by the lingering concerns over COVID-19, increased energy efficiency, switching due to increased utilisation of gas, and alternatives for electricity generation. These are reflected in the Medium Term Revenue Framework’’, he added.

Chairman, House Committee on Finance, James Faleke, commended the NNPC GMD for an in-depth explanation and insider perspective on issues surrounding the operations of the corporation and the Oil Industry noting that the committee was now better informed.

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