NNPC Announces Nigeria’s Ambitious Plan to Export Oil by 2024.
The Group Managing Director of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari has unveiled a bold vision for Nigeria’s energy sector.
At the PENGASSAN energy and Labour summit 2023 in Abuja, Kyari detailed an extensive strategy aimed at transforming Nigeria’s role in the global petroleum industry, with the goal of transitioning from being a significant crude oil exporter to becoming a net exporter of petroleum products by the year 2024.
Emphasizing the unique position of Nigeria as a resource-dependent nation, Kyari argued that the country should diversify its petroleum industry beyond simply exporting crude oil. He stressed the importance of developing substantial domestic refining capacity.
“In 2024, this country will become a net exporter of petroleum products,” declared Kyari with confidence, though without specifying a precise date. The overarching objective is clear: Nigeria seeks to secure an ample supply of petroleum products for its domestic needs while concurrently generating surplus volumes for export.
However, Kyari cautioned that an increase in domestic refining capacity might not necessarily lead to an immediate reduction in local petroleum product prices, as these prices often depend on international market rates.
To address Nigeria’s historical dependence on petroleum product imports, the government has initiated various efforts to revitalize its government-owned refineries. One notable example is the Port Harcourt Refining Company, expected to resume operations by December. Additionally, the highly anticipated Dangote Refinery, with a substantial production capacity of 650,000 barrels per day, is on the verge of commencing production, potentially significantly boosting domestic refining capabilities.
Kyari concluded his address by highlighting initiatives aimed at reducing reliance on conventional fuels. These initiatives include the adoption of Compressed Natural Gas (CNG) as an alternative fuel source in public transportation and various industrial applications.
He emphasized that these efforts are poised to contribute to cleaner and more cost-effective energy solutions in Nigeria, aligning with broader sustainability objectives.