Minister denies directing NNPC to stop running refineries

Heineken Lokpobiri, the Minister of State for Petroleum Resources (Oil), has firmly rejected claims that he instructed the Nigerian National Petroleum Company Limited (NNPCL) to cease operating its own refineries and instead concentrate solely on equity participation in other refining ventures. In a statement he released on Tuesday, Lokpobiri clarified that these assertions, which were attributed to Engr. Kamoru Busari, the Director of Upstream in the Ministry, during a recent conference in Lagos, are inaccurate.

The minister emphasized that he had never directed NNPCL to stop its refinery operations. He stated that such claims do not reflect his perspective on managing the oil sector or the official position of the Federal Government. In his statement, he noted, “I have been made aware of remarks attributed to Engr. Kamoru Busari, who represented me at the Lagos conference. I want to make it clear that the assertion that I ordered NNPCL to halt its own refinery operations and focus exclusively on equity stakes in other refineries is incorrect.”

Lokpobiri further explained that this misrepresentation does not align with his role as the minister overseeing the oil sector, and he highlighted that it fails to accurately reflect the broader governmental stance. He elaborated, stating, “It is crucial to understand that NNPCL operates under the Companies and Allied Matters Act (CAMA), governed by a functional board and management. The Ministry of Petroleum Resources does not exert control over NNPCL, as it functions independently like any other corporate entity.”

The minister reiterated the commitment of the Federal Government to fostering domestic refining capacities. He mentioned, “The oil and gas sector in Nigeria is fully deregulated, and our government is dedicated to promoting in-country refining initiatives. We encourage all companies, including NNPCL, to operate on an independent basis and adhere to global best practices.”

Lokpobiri stressed that while the government provides strategic guidance, it does not interfere directly in the operations of NNPCL or any other companies in the sector. He stated, “I reaffirm our dedication to supporting the growth and autonomy of NNPCL, ensuring that its operations align with international standards of efficiency, transparency, and profitability.”

In conclusion, the minister’s response serves to clarify the government’s position on the operations of NNPCL and to dispel any misconceptions regarding his directives. He emphasized the importance of maintaining an independent operational structure for NNPCL, which is crucial for the advancement of Nigeria’s oil and gas sector, ensuring that it continues to thrive in a competitive global market.