• Marketers optimistic as NUPRC insists theft dropped by 40%
• PENGASSAN proposes $200b budget for economic growth
• Makes case for intellectuals to curtail grid collapse
The Federal Government has disclosed that the country would need additional 350,000 barrels per day (bpd) of oil to meet targets for the 2025 budget, translating to 127.7 million barrels or $10.3 billion monetary equivalent.
This comes as the Minister of State for Petroleum (Oil), Heineken Lokpobiri, leads the creation of a new forum in the oil and gas industry, even as he raised concerns over the 271 taxes and levies in the sector.
While Nigeria’s 2025 budget is built around $75 per barrel oil price and 2.06 million bpd, oil production plus condensate, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) stands at about 1.7mbpd with a deficit of about 350,000.
The deficit, if Nigeria fails to magically increase its output, would stand at 127.7 million barrels by the end of the year. Going by the current oil price of $81 per barrel, this shortfall will translate to $10.3 billion. In the last 10 years, including last year, Nigeria failed to meet oil production benchmarks as budget deficits persistently widened.
However, Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) said that the country would require about $200 billion budget size to grow economically.
On the frequent grid collapses, the association urged President Bola Tinubu to hire intellectuals to man the power infrastructure in the country.
Lokpobiri, while unveiling the quarterly stakeholders’ forum, yesterday, in Abuja, noted that the aim was to address challenges facing Nigeria’s oil and gas sector and fast-track policy decisions.
Modelled after the Bankers’ and Capital Market Committees, the forum aims to create a sustainable mechanism for resolving industry-wide issues collaboratively.
The minister emphasised the need for synergy among upstream, midstream, and downstream operators to stabilise the industry and ensure energy security.
Challenges, including policy conflicts, the availability of petroleum products and Nigeria’s burdensome tax structure, which imposes over 271 levies and taxes on businesses were, according to the minister, raised at the forum.
“Our objective is to bring together stakeholders for regular discussions to identify challenges and propose solutions. This platform will help ensure market stability, adequate supply and effective policy implementation,” Lokpobiri said.
President of the Petroleum Product Retail Outlet Owners Association of Nigeria, Dr Billy Harry, praised the initiative, calling it a crucial step towards energy security.
“This forum will ensure seamless compliance and promote collaboration across all sectors of the industry,” he noted.
Chairman of the Petroleum Technology Association of Nigeria (PETAN), Nicolas Odinuwe, lauded the government’s efforts to meet the country’s OPEC production quota. “Sustaining production levels is key to stabilising the economy and mitigating the boom-and-bust cycles of the industry,” he stated.
Chief Executive Officer, NUPRC, Gbenga Komolafe, said there is significant growth in the upstream sector, adding that oil production rose by 26 per cent from April 2023 to November 2024, while active rig counts increased from eight in 2021 to 38 in 2024.
“The theft and deferment of crude oil have reduced by over 40 per cent through collaboration with security agencies. We’re not just solving problems; we’re creating opportunities,” Komolafe said, adding that the NUPRC is focused on achieving a one-million-barrel-per-day production increase.
Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Ahmed Farouk, stressed on the progress in developing Compressed Natural Gas (CNG) as an alternative to petrol.
He said over $400 million had been invested in CNG infrastructure, resulting in the establishment of 86 new stations and a rise in Nigeria’s gas vehicle population to 50,000.
Chairman of the Manufacturers and Equipment Marketers Association of Nigeria (MEMAN), Hoob Stockman, said the integrated approach from the minister would ensure Nigeria remains on a sustainable energy path.
NUPRC plans to implement advanced metering regulations, digitalise regulatory activities, and optimise production costs.
Similarly, the NMDPRA will consolidate successes in laboratory upgrades, inter-agency collaboration and automation to enhance regulatory oversight and consumer protection.
PENGASSAN described as abysmal N49.76 trillion (equivalent to $30,000) presented as the budget for 2025 considering a population of over 200 million people.
President of PENGASSAN, Festus Osifo, during the association’s National Executive Council (NEC) meeting in Lagos, yesterday, stated that despite the effect of devaluation on the nation’s local currency, the budget size falls short of what it is today.
Comparing the country’s budget with South Africa with a population of about 60 million people but having a budget of $120 billion, he cited social amenities and infrastructure as challenges in the country.
Osifo urged the government to do everything possible to expand its revenue base by harnessing its mineral resources. “The way we generate jobs is to tap into these mineral resources and not just to export them as raw materials but to add value to them that will create enormous jobs and generate huge revenue,” he said.
Following the resuscitation of the Port Harcourt and Warri Refineries, he said the union would continue to push until all the nation’s refineries were working.
He called on those manning the Ministry of Petroleum and those saddled with the responsibility of fixing the nation’s refineries to get them to work, which would create jobs as well as generate foreign exchange for the country.
The PENGASSAN chief said it was a shame that the country’s national grid collapsed more than 12 times in 2024 and could not generate sufficient megawatts to power its own with millions of dollars invested without yielding any result.
Stating that it was not acceptable, he called on President Tinubu to do everything possible to ensure the country’s electricity infrastructure is well protected.
He urged that Tinubu should tap into the human resources the country has and also get the best hands to man the power ministry.
According to him, the country cannot continue to rely on less qualified politicians.
“Tinubu must appoint intellectuals and look at those that are saddled with the responsibility of manning the ministry. This must be done with the utmost urgency to prevent constant grid collapse,” he said.
On the tax reform bills, Osifo said the association was collating facts around the bills to present to the government and the National Assembly.(Guardian)
