PETROAN seeks NMDPRA board role as Lokpobiri defends naira-for-crude deal
The Petroleum Products and Retail Outlet Owners Association of Nigeria has formally requested a seat on the board of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, emphasizing its role in ensuring the efficient distribution of petroleum products nationwide.
PETROAN’s National President, Billy Gillis-Harry, made the request during a courtesy visit to the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, on Tuesday in Abuja.
“We wish to request that PETROAN be appointed to the board of NMDPRA to assist the agency that is doing so very well in reaching the grassroots,” he said.
He also advocated for a balanced approach to fuel supply, suggesting that while refining should be encouraged, importation should also remain an option.
However, Lokpobiri responded that he lacks the authority to grant the request, explaining that board appointments are determined by the Petroleum Industry Act (PIA).
The minister also addressed recent speculations regarding the cancellation of the Naira-for-crude scheme involving the Dangote Refinery.
He clarified that the initiative remains a pilot program approved by the Federal Executive Council and has not been revoked.
“Government is not canceling it. What was taken to council was a pilot scheme where they said NNPC should be selling crude in Naira to Dangote Refinery,” he stated.
He further explained that the arrangement was specific to Dangote Refinery, which is why international oil companies and other operators were not part of the deal.
“The dispute has always been about the exchange rate, which is not determined by the government. It is purely a private-sector issue.
“If you are in the upstream and have a modular refinery next to you, the negotiation is between both parties. The buyer may decide to pay in dollars or in Naira,” Lokpobiri added.
He also reiterated that the Nigerian National Petroleum Company Limited, now a private sector-driven entity under the PIA, operates with limited government interference.
“NNPC takes decisions that they feel are best for Nigeria in the industry with limited government interference.
“That doesn’t mean we can’t call them to order from time to time because they are a national oil company.
“But they now have a measure of independence to make proper business decisions that will be best for Nigerians,” he said.
