The Nigeria Governors Forum (NGF) has again backed President Bola Tinubu’s “crude oil for naira” initiative, expressing discontent over the country’s reliance on imported petrol despite being an OPEC member, saying it is an aberration.
The statement comes just days after Aliko Dangote announced that his refinery was ready to roll out over 500 million litres of Premium Motor Spirit (PMS), commonly known as petrol but that NNPCL and other retailers were not collecting the available products to ease petrol queues, resulting in financial losses for his company.
During a late-night meeting that concluded early Thursday morning in Abuja, Imo State Governor, Hope Uzodinma read the communique, emphasising the urgency of local refining.
“It is shameful that an OPEC member producing crude oil still relies on importation,” Uzodinma stated.
He further highlighted the potential of the crude for naira policy to create jobs and reduce production costs, saying, “We must encourage homegrown solutions.”
Uzodinma who read the communique signed by the Forum’s chairman and Kwara State Governor, Abdulrahman AbdulRazaq, said the Forum received an update from the Group Chief Executive Officer of NNPC Limited, Mele Kyari on key developments in NNPC’s operations, including the National Crude and Condensate Production profile, the Production War Room initiative, and ongoing security efforts to combat illegal connections and vandalism.
He said emphasis was placed on the role of the Production War Room in accelerating production and addressing bottlenecks in Nigeria’s upstream sector.
He said governors acknowledged the importance of these measures in securing the nation’s energy resources and improving the efficiency and resilience of NNPC’s production and supply chain.
When asked about the specifics of the Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer Mele Kyari’s briefing on subsidy removal, particularly in light of ongoing fuel queues despite high petrol prices, Uzodinma emphasised the governors’ support for the “crude for naira” initiative.
He stated that the policy would not only create jobs but also reduce production costs, ultimately lowering prices for consumers.
Responding to the question the Imo governor remarked, “Yeah, it is something that is being looked at. If you look at the news, you see that the Dangote Refinery has come up with also capacity to supply products.
“I don’t think that you or me would be happy as a Nigerian, an OPEC member, producing crude oil, relying on importation for our people to use our petroleum products.
“So we must encourage the homegrown solution that the President just introduced. We should encourage Dangote Refinery, we should repair our Port Harcourt Refinery, repair our Warri Refinery, repair our Kaduna Refinery, and then produce what we eat, and eat what we produce.
“We shouldn’t rely on importation of crude oil. For me, it is an aberration abenitio to rely on importation of petroleum products as an oil-producing country.
“Which other member of OPEC country of our status is not refining crude oil in that country? So we shouldn’t encourage that. I think I want to support buying petroleum products in Naira, buying crude oil in Naira, refining it here.
“If you refine petroleum products locally, you will create jobs, you will cure unemployment, you will keep people busy, you will reduce crime, and then you will also be proud to answer an oil-producing nation.”
Dangote had told newsmen after a meeting on Tuesday with President Tinubu and his committee on crude oil and refined product sales in local currency, that his refinery had crude to last 12 days.
“At full capacity, we can even supply whatever is being consumed… as we speak today, we have 500 million litres in our tanks.
“500 million litres in our tanks even if there’s no production from any or no imports, this will take the country more than 12 days, with no imports, with no production, nothing.”
He had added that keeping unsold PMS in storage was costly, urging retailers to collect the products to reduce petrol queues and the company’s losses.
“On the streets, one thing that you have to understand is that we are producers. I have a refinery. I’m not in the business of retail. If I’m in the business of retail, then you hold me responsible,” Dangote said.
“But what I’m saying is that the retailers should please come forward and pick. If they don’t come forward and pick, what do you want me to do? There is nothing that I can do.
“I am expecting the NNPC or the marketers to stop importing, they should come and pick because we have what they need.
“I don’t know whether you understand what it takes to keep half a billion litres inside our tank.
“It’s costing me money every day. If I will be able to collect the naira, I can actually charge somebody 32 per cent in interest.
“So right now, that’s what I’m losing. And we are talking about 500 million, and we don’t print money.
“The issue is that if they come and collect, then you will not see any queues in the filling stations.
“We have what it takes for them to come and collect. We are not retailers. We also don’t have trucks to send. We have a factory, we have where they can load.”
