Chairman of the House of Representatives Committee on Finance, Hon Abiodun James Faleke, has commended the group managing director of the Nigerian National Petroleum Corporation (NNPC), Engr. Mele Kyari, for providing a detailed analysis of the Medium Term Revenue Framework for 2022 and 2023.
The legislative committee also said Kyari cleared the air on sensitive issues surrounding the operations of the NNPC and the oil industry.
“You have made our day. The committee is better informed based on explanations provided by the GMD,” Faleke said.
Kyari had in his presentation, provided a base oil price in the medium term as $57 per barrel for 2022, $61 per barrel for 2023 and $62 per barrel for 2023.
Kyari explained that the assumptions were arrived at after a careful appraisal of the three-year historical dated Brent Oil price average of $59.07 per barrel premised on Platts Spot Prices.
“Price growth is to be moderated by the lingering concerns over COVID-19, increased energy efficiency, switching due to increased utilization of gas and alternatives for electricity generation. These are reflected in the Medium Term Revenue Framework, ” he said.
Kyari, however, implored the National Assembly to come up with a legislation against smuggling of petroleum products, noting that the NNPC already mobilised some federal agencies like the Customs, the Economic and Financial Crimes Commission (EFCC), the Police, Civil Defence Corps and others, to find workable solutions to the menace.
While commenting on the possibility of establishing NNPC Retail stations in neigbouring countries to curb illegal haulage of petroleum products across the border, Kyari said though the NNPC once considered the option, it had to jettison the idea when it became imperative that the measure would be counterproductive.
He explained that people who are smuggling are not looking for officially priced petroleum products.
He further noted that going ahead to establish NNPC retail stations would not yield the desired result since the people who take products across the border are not interested in selling at the official prevailing prices at approved stations but are interested in under-the-counter deals.