#Country Updates #News #Nigeria #Upstream Oil & Gas News

Nigeria’s Oil Industry Needs More Privatization To Flourish

Nigeria’s Oil Industry Needs More Privatization To Flourish

Nigeria National Petroleum Corporation (NNPC) operates as a state-owned company the government uses as the regulator and partial distributor of petroleum liquids in the country. Its inception in 1977 gives hope for average Nigerians who are expecting an economic boom.

But almost five decades after, this expectation is yet to be seen; instead, the corporation has been plagued with corruption and mismanagement of resources which do not only cost Nigerians their tax funds but also their lives.

The most devastating and glaring damage is the consistent fire blast from the corporation’s petrol pipes, caused by lack of maintenance. By current regulations, NNPC’s profits, along with the tax naira, are supposed to pay for the maintenance of state-owned refineries, but these have refined no oil for decades.

The most devastating and glaring damage is the consistent fire blast from the corporation’s petrol pipes, caused by lack of maintenance. By current regulations, NNPC’s profits, along with the tax naira, are supposed to pay for the maintenance of state-owned refineries, but these have refined no oil for decades. For all this to stop, the ownership of the refineries and management of pipelines need to change. That is, NNPC should be privatized.

Between 2001 and 2019, NNPC’s GMD, Mele Kyari, noted that there were about 45,347 pipeline breaches, many of which killed civilians. For instance, a blast in March 2020 killed fifteen people and destroyed several houses in Lagos.

Click on the link below for full report

Source: OrientEnergyReview

Leave a comment

Your email address will not be published. Required fields are marked *