PETROAN Joins Fight for NMDPRA Board Seat Amid Controversial Oil Deal

In order to ensure the effective distribution of petroleum products throughout the country, the Petroleum Products and Retail Outlet Owners Association of Nigeria has formally applied for a seat on the board of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

Billy Gillis-Harry, the national president of PETROAN, made the plea on Tuesday in Abuja while paying a courtesy call to Senator Heineken Lokpobiri, the minister of state for petroleum resources (oil).

"To help the organization that is doing so well in reaching the grassroots, we would like to request that PETROAN be appointed to the board of NMDPRA," he stated.

Additionally, he promoted a balanced approach to fuel supply, arguing that importation should be allowed even though refining should be promoted.

In response, Lokpobiri stated that the Petroleum Industry Act (PIA) governs board appointments and that he does not have the jurisdiction to approve the request.

The minister also responded to recent rumors that the Dangote Refinery's Naira-for-crude plan would be canceled.

He explained that the effort has not been canceled and is still a pilot program that has been approved by the Federal Executive Council.

"It will not be canceled by the government. The pilot plan that was presented to the council suggested that NNPC sell crude to Dangote Refinery in Naira, he said.

He went on to say that multinational oil corporations and other operators were not included in the agreement because it was exclusive to Dangote Refinery.

The currency rate, which is not set by the government, has long been the source of contention. This is a private-sector problem.

"The negotiation is between both parties if you are in the upstream and have a modular refinery adjacent to you. The buyer has the option of paying in Naira or dollars," Lokpobiri continued.

Additionally, he reaffirmed that the Nigerian National Petroleum Company Limited, which is currently a private sector-driven organization under the PIA, functions with little intervention from the government.

"NNPC makes judgments with minimal government intervention that they believe are best for Nigeria in the industry.

Since they are a national oil business, that does not preclude us from occasionally calling them to order.

“But they now have a measure of independence to make proper business decisions that will be best for Nigerians,” he said.