The Chairman of the Nigerian House of Representatives Committee on Petroleum (Downstream), Hon Ikenga Imo Ugochinyere, has praised the Nigerian National Petroleum Company Limited (NNPCL) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for ensuring a steady supply of Premium Motor Spirit (PMS) during the festive season.
He said PMS availability has led to the elimination of queues and easing of transportation during the season.
Ugochinyere said before the enactment of the Petroleum Industry Act, 2021, the availability of PMS has been an issue for households and businesses.
The chairman said the effective implementation of the PIA by the state-owned energy company has transformed the downstream sector for the benefit of businesses and Nigerian households.
The PIA 2021 mandates the NNPCL to ensure energy security in Africa’s most populous nation.
The lawmakers said the PIA has enabled reforms in Nigeria’s oil and gas industry with enhanced transparency. According to him, the oil and gas industry has attracted investments following the implementation of the PIA.
In order to ensure energy security, Ugochinyere said the PIA enabled the NNPCL to enter a strategic collaboration with the Dangote Refinery to ensure PMS availability including other petroleum products.
Recall that the NNPCL recently disclosed through its Chief Corporate Communications Officer , Olufemi Soneye that it provided $1bn liquidity to the Dangote Refinery when it had liquidity issues.
The lawmaker said since commencing operations, the refinery has significantly increased its production capacity, reducing Nigeria’s overreliance on imported fuel.
The NNPC also restreamed the 210,000 barrels per day Port-Harcourt Refinery.
He said the increase in local production capability is crucial in stabilising supply chains and mitigating disruptions often arising from global market fluctuations or logistical challenges.
Ugochinyere said, “The painful yet necessary adjustments made during the implementation of the PIA have laid a foundation for sustainable practices that promise long-term benefits for Nigeria’s economy.”
The lawmaker reaffirmed his commitment to support policies that promote sustainability in Nigeria’s petroleum industry.