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By Kenneth Jukpor
Following complaints that the Nigerian National Petroleum Corporation (NNPC) has become monopolistic in the downstream oil sector as sole distributor and importer of petroleum products, the Corporation has stated that it wasn’t in competition with Depots and Petroleum Product Marketers Association of Nigeria (DAPPMAN).
The Managing Director of NNPC Retail, Sir Billy Okoye stated this while reacting to the Vice Chairman of the DAPPMAN, Hajia Amina Maina’s remark during her presentation at the event at the ongoing 2019 OTL Africa Downstream Week, yesterday.
She asserted that NNPC had become overburdened with the role of regulator, importer, and sole distributor in the oil sector.
“Government needs to take a clear position on its role in the oil sector because you have only NNPC importing. Private operators should be able to enjoy the fiscal environment and other benefits that NNPC enjoys” she posited.
Maina also stressed that Nigeria’s inconsistent policies and perceived uncertainty following change in administrations are major impedements to private sector investments in depots and pipeline investments.
She noted that this challenge would always limit private sector investments in depots ownership and piping.
Maina who was representing the DAPPMAN Chairman, Mrs. Winifred Akpani, also stressed that DAPPMAN would rather have an oil industry where NNPC wasn’t the sole importer but private operators would thrive in importation and distribution of petroleum products.
Reacting to this, the Managing Director, NNPC Retail, Okoye stated that NNPC wasn’t in competition with DAPPMAN rather it was complimenting the efforts of the private companies.
“It is important to note that NNPC retail isn’t in competition with DAPPMA. We’re only complementing the wonderful work DAPPMA is doing. Imagine a situation where NNPC does what other private companies and refuses to import petroleum products. The chaos and hardship such action would have on Nigeria can only be imagined” Okoye said.
He referred to NNPC as the last option for intervention when other private companies had failed in the bid to make products available to Nigerians.
The NNPC boss also assured that the planned restructuring of pipelines in the country would see DAPPMAN enjoy better operations and profitability.
Meanwhile, the Managing Director, Eterna PLC, Mr. Mahmud Tukur, assured Okoye that DAPPMAN belonged to an oil political party with the NNPC Group Managing Director, Mallam Mele Kyari as the party leader.
Tukur admonished NNPC not to allow it’s intervention as supplier at last resort permanently replace DAPPMA who were the first set of suplliers.
“If we have access to the same conditions NNPC has, we will do as good as NNPC. What we need from the government is access to the enabling environment” Tukur said.
Tukur also admonished the government to address administrative issues which lead to demurrage as vessels are found waiting at depots on Sundays when Muslims could be scheduled to work on such days.
