Deregulation: Oil Marketers To Access Forex At Same Rate As NNPC- Kyari

The Group Managing Director, Nigerian National Petroleum Corporation, Mele Kyari, has said that plans are underway to create a window that would allow oil marketers to access foreign exchange at the same rate as theCorporation.

The GMD, speaking at a TVC News Business Nigeria Programme, said that no oil marketing company has been able to import crude oil into the country as they do not have access to foreign exchange.

He said, “No marketing company is able to import crude oil products because they do have access to FX

“There is an ongoing process to ensure that oil marketing companies have access to foreign exchange at the same rate that NNPC will exchange the value of crude oil.

“That will take out all distortion in the market and ensure that everyone deliver petroleum to the market at the same exchange rate.”

The GMD speaking further said that NNPC in ensuring transparency and accountability and effective service would in no distant time declare its dividend to shareholders.

According to the GMD, the Corporation is transforming into an energy company, in line with the vision of the Ministry of Petroleum Resources to deliver on gas penetration as a viable alternative to petrol.

He said, “NNPC is transforming to energy company, in alignment with the vision of the Ministry of petroleum Resources to deliver on gas penetration due to concurrent rise in the price of PMS.

“All the four refineries in the country are shutdown as the pipeline network has been compromised by vandals leading to poor operating capacity.

“Every refinery is expected to operate at at least 90 per cent of installed capacity, it is impossible to run any of these refineries before the short down at that level.

“We tried running at 60 per cent of the installed capacity but it will lead to value destruction, where you take $100 crude to the refinery and bring out only $70.

“So we decided to do a rehabilitation of the refineries to fix it, we have lost money in the refineries.

“We are ensuring we deliver on the rehabilitation so that when they are back to being used they can deliver beyond the 90 percent installed capacity.”

“Port Harcourt Refinery should be back by January 2021, as initiative to create condensate refineries are underway.”

Speaking on the impact of subsidy removal on the Nigerian economy, the GMD said that the removal would spread across all aspects of the economy through provision of infrastructure, creation of jobs and other basic need of the common Nigerian.

“The collateral benefits that this will bring includes creation of more jobs, employment, infrastructure, hospital, school to ensure that the long term benefit outweighs the immediate pains.”

“There is over N2.7trn investment that the government is creating in the Economic Sustainability plan, as it seek to inject resources into agriculture, manufacturing, small scale industry to create jobs and employment and boost economic activities,” he added.