Senator Heineken Lokpobiri, Nigeria’s Minister of State for Petroleum Resources, has strongly denied reports that he directed the Nigerian National Petroleum Company Limited (NNPCL) to stop operating its refineries. The minister described these reports as false, clarifying that they do not reflect his position or that of the Federal Government.
In a statement released late Tuesday, Lokpobiri addressed the rumors, which had gone viral after comments made by a representative from the Ministry of Petroleum Resources at a recent summit in Lagos.
The controversy began when Engr. Kamoru Busari, Director of Upstream at the Ministry of Petroleum Resources, reportedly made remarks during a conference suggesting that the NNPCL should abandon its refinery operations and instead focus on acquiring stakes in private refineries, such as the Dangote Refinery.
In his statement, Lokpobiri firmly rejected these claims, emphasizing that no such directive had been issued by him.
“My attention has been drawn to statements attributed to Engr. Kamoru Busari, who represented me at a recent conference in Lagos. I wish to categorically state that the claim that I directed the NNPCL to stop running its own refineries is false,” the minister said.
Lokpobiri went on to clarify that these remarks did not represent his position as the minister responsible for overseeing the oil sector, nor did they reflect the official stance of the Federal Government on the matter.
The minister stressed that NNPCL operates independently, as a company governed by the Companies and Allied Matters Act (CAMA). He pointed out that the Ministry of Petroleum Resources does not control or directly manage NNPCL, which has its own functional board and management structure.
“The NNPCL is a company governed under the Companies and Allied Matters Act, with a functional board and management. The Ministry of Petroleum Resources does not control or run NNPCL,” Lokpobiri explained.
This clarification is important because NNPCL, after its recent transition from a state-owned corporation to a private entity under the Petroleum Industry Act (PIA), operates more like a corporate business. It is expected to function independently, following best global practices in its operations.
Lokpobiri added that while the Ministry of Petroleum Resources provides strategic guidance to companies within the oil and gas sector, including NNPCL, it does not interfere in their day-to-day operations.
“We provide strategic guidance, but we do not interfere directly in the operations of these companies,” he emphasized.
Responding to the ongoing discussion about the future of Nigeria’s oil refining capacity, Lokpobiri reaffirmed the government’s commitment to promoting local refining.
Nigeria has been struggling for years with an underperforming refining sector. Despite being one of the largest crude oil producers in Africa, the country imports most of its refined petroleum products due to the inefficiency of its refineries in Port Harcourt, Kaduna, and Warri.
In recent years, the Nigerian government has pushed for deregulation of the oil and gas sector and encouraged private investment in the refining industry to address these challenges.
Lokpobiri’s statement reinforced the government’s dedication to supporting all efforts aimed at increasing local refining capacity. This includes supporting NNPCL’s initiatives as well as encouraging private sector players like Dangote Refinery to contribute to meeting Nigeria’s fuel demands.
“The oil and gas sector is fully deregulated, and the Nigerian government remains committed to promoting in-country refining,” Lokpobiri noted. “We encourage companies, including NNPCL, to operate independently, following global best practices.”
