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Diversion of PMS causes market shortfalls

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By Mercy Kelani

Banks and financial institutions should invest in gas projects.

At a meeting held at the NNPC Towers, Abuja, the Group Executive Director of Downstream, represented by the Managing Director of Petroleum Products Marketing Company (PPMC), Mr. Isiyaku Abdullahi, said that NNPC, being the major importer of petroleum, was in a tight situation which makes it depend only on the cooperation of the marketers for sustenance of product availability Nigerians and reduction of burden of high evacuation costs on government in areas of under-recovery. It has become an issue of concern to the company that despite the high truck-out of Premium Motor Spirit (PMS) from nationwide depots, there are shortfalls which can be traced to diversion of products.

Director therefore urged marketers to ensure activation of the Corporate Social Responsibility (CSR) component of their businesses to assist the Federal Government and the NNPC in sustenance of energy security for the country; a step which would help curb the impact of the ongoing global energy crisis. The Executive Secretary of MOMAN, Mr. Clement Isong, asserted that NNPC is saddled with a responsibility that ensures enough suppliance of petroleum products, particularly at crucial times when there are global inflationary problems.

Current price volatility in global energy would worsen without bank funds.

The Executive Secretary of DAPPMAN, Mr. Olufemi Adewole, contented on the outcome of the meeting, assured NNPC of the organization’s commitment to ensure efficient supply and distribution of petroleum products across Nigeria. The NNPC however stated that there is a likelihood that the current price volatility in global energy would worsen with banks and financial institutions’ avoidance to fund and sponsor gas projects. This warning was given by the Chief Executive Officer of NNPC Ltd., Malam Mele Kyari, at the 28th World Gas Conference 2022 at Daegu, South Korea.

Speaking against the backdrop of low funding for recent oil and gas projects for environmental concerns, Malam Kyari said that gas is always associated in many jurisdictions. As a result, one has to turn the table to find out if one can get non-associated gas to enable banks and financial institutions to invest their money in it. Without that happening, there will be constraints of financing and the opportunity would become a crisis. NNPC is trying to turn the table to enable facilities that are being built and those yet to be built to have efficient gas to process and deliver into the market.

NNPC, 1st to acquire the environmental audit certification in FCT.

Investment in petroleum products is considered as a massive opportunity for the financing sector with the number of projects coming up. The immediate future needs the right financing through investments by financial institutions. Without proper investments, pricing challenges would be much more difficult to manage in the next two or three years. The NNPC CEO added that the company has no allergy to the quest for carbon neutrality but funding gas projects is vital to aversion of future crises.

The Permanent Secretary of the Federal Ministry of Environment, Mr. Hassan Musa, represented by the Director of Environmental Assessment, Dr. Abbas Suleman, asserted that the NNPC Ltd, is the first exploration and production company to get environmental audit certification in the Federal Capital Territory, Abuja, since the establishment of the Environmental Impact Assessment (EIA) law about three decades ago. The Permanent Secretary applauded the NNPC for being committed and consistent to environmental global best practices, stressing the fact that the certification revealed the management as a law abiding one.

Increment of national domestic refinery capacity is objective to NNPC.

Federal Government of Nigeria, through the Minister of State for Petroleum Resources, Chief Timipre Sylva, made a call for synergy among stakeholders in the midstream and downstream division of the oil and gas sector. The minister further stated that one of the major aims of the Ministry of Petroleum Resources is the increment of national domestic refinery capacity. Synergy in the Midstream and Downstream sectors, according to Chief Sylva, would boost local content development and ensure improvement of the national domestic refining capacity.

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