Lauds FG, NNPC, Nigerians over restoration of fuel supply
Emmanuel Kehinde, Ilorin
A retired Deputy Director of the now-defunct Department of Petroleum Resources, Engineer Sunday Adebayo Babalola, has urged the Federal Government and the Nigerian National Petroleum Company Limited to prepare for shocks that may arise in the oil industry.
He stated that since global events affect oil pricing and its availability in Nigeria, the government and the NNPC must be prepared for such an eventuality.
Babalola is currently Director of All Grace Energy, in an interview, however, lauded the federal government Nigerians for their efforts and maturity during the last queues in petrol stations across some states in Nigeria as a result of scarcity of premium motor spirit, popularly called petrol.
Babalola, a former acting Managing Director of Belemaoil Nigeria Limited, said though the fuel scarcity lingered for some weeks, the Federal Government, tried its best to restore normalcy.
He stated that Nigerians exhibited appreciable maturity and avoided protest or any violent reaction but showed understanding with the government.
It could be recalled that over 100 million liters of fuel recently imported into the country, were said to be adulterated, containing high methanol quantities above Nigeria’s specification, which led to long queues at fuel stations in major cities in Nigeria.
This anomaly resulted in blame games among players in the industry.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority, (NMDPRA), and other related agencies had blamed the anomaly on the NNPC, while, the NNPC Group Managing Director, Mele Kyari blamed some oil companies for the importation of the offensive product.
Babalola said, “There will always be a shock. It is not a surprise that there is a shock. The world today is like a single body. What affects the eyes affects the leg. That is the way the world is. Any small shock anywhere, whether an earthquake or the war as it is happening now, will create ripples everywhere because countries of the world are touching one another. We can not avoid it. The only way to avoid such is to leave the world and since we are not going to leave the world, we have to be prepared for such sudden shocks. That is what I am going to advise the people in the NNPC, and regulatory bodies, to ensure that they are prepared for such shocks.
“To the NNPC, they have done very well. They did very well in rising up to the occasion to withdraw the fuel that was wrongly mixed and got them rid of before they could create further damage. They did very well in also bringing better quality fuel and distributing it as fast as possible. They did very well in ensuring that the prices generally did not change. They did very well in these areas. Of course, some unscrupulous elements must have seized the opportunity of the scarcity to rip people off. That is expected in any situation like that.
“The resumption of normal fuel supply at the normal rate in many states of Nigeria is a very good development. I must commend the Federal Government and the Nigerian National Petroleum Company Limited for the efforts they have put in to be able to bring about this restoration of fuel supply and prevent further fuel scarcity. Everybody’s hands were on deck to make sure it happened. It did not happen within the shortest possible time but it did eventually and that is very commendable. In spite of the trial and confusion going on in the world, including the Ukraine-Russian war, we are still able to get fuel into the petrol stations and people are able to buy without queues. I commend the federal government for that.”
Babalola who is a former acting Managing Director of Belemaoil Nigeria Limited said illegal refining of petroleum products is inimical to Nigeria’s economy, environment, and the health of the residents.
He commended the Governor of Rivers State, Nyesom Wike for his anti-illegal oil refining war in his state.
He said, “I must commend Governor Wike for his efforts and work. Illegal refining is cheating us on revenue. The companies are frustrated. They spend a lot of money producing operating costs, capital costs, and exploration and after they have found the oil, somebody goes to steal it and refine it illegally. The effect on the company is not good. The effect on the company with respect to financiers is not good. Nobody will want to bring their money into a country where they are not sure what they have invested the money on is going to yield good returns. The illegal refiners are not helping the situation. Moreover, environmental degradation is enormous. If you got to Port Harcourt today, by evening, you manage to put your hand in your nose, what it will bring out is bad soot. I commend Governor Wike for a very good job.I hope that he continues to do it and I hope that party differences will not make him be discouraged in what he is doing.
“I hope all the South-South governors will do it. The effect of illegal refining is huge. It affects the health of the people living around the South-South. From that, we see that it affects the hospitals too because when people are sick, they rush to hospitals and hospitals will be overpopulated. It also affects the revenue of the states and the federal government. It also affects companies from being able to raise money to further develop crude oil.
“It is very sad because today we think that crude oil is all that is required for huge foreign exchange earnings but that is not the case. The world is changing very fast. So if we do not produce what we can produce today, and sell it and make money that we can use for infrastructural development to move our country forward, we will stand to regret it in a few years. Because a time will come, it may not be tomorrow, it may not be next week, it may not be next years, it may not even be in 20 years’ time, but the time will come when oil will not be fashionable again. Just as it happened, coal was the in-thing one time but it is not the in thing today. The effect can be very devastating to everybody and to all stakeholders. And that is why I commend Governor Wike and I pray that he be supported by all stakeholders so that he can do more.”
He added, “Other South-South governors should join in the fight. It is a given. If Governor Wike succeeds in his area, the people will move to other areas. So it is better for allof them to be prepared and start fighting from their own ends so that they will not have anywhere to run to and continue this illegal refining. When you talk of illegal refining, the environmental degradation, when they puncture the oil pipelines or when they leave the place after siphoning whatever they did, the environment is degraded and it is blamed on the oil companies, which is very sad. “Honestly, it is wrong to say that many of those who are involved in illegal refining are poor. It is wrong. The people who have been doing it are not poor. They are not poor. Poor people can not afford to buy high-speed boats, poor people can not afford to buy the equipment they use to puncture and make holes in the pipelines. They are not poor. To me, I am not sure, they may be supported by highly placed people also. They also make a lot of money from it. I do not agree that they are poor people. People who are involved in illegal refining should stop it.
They are even endangering their lives and that of other residents. They are also sabotaging the economy of Nigeria and their states.
They also inhibit the revenue and growth of oil companies and also prevent them from more exploration. They also deter investors from investing in the industry and so prevent growth and development in their communities.”