The Nigerian National Petroleum Company (NNPC) Limited has identified energy conservation, diversification, and efficiency measures as key strategies to enhance energy security in the country. The NNPC is actively involved in efforts to bolster the nation’s energy diversification initiative, recognizing major challenges to energy security, including rapid population growth, pipeline vandalism, and crude oil theft,leadership report.
Mele Kyari, the Group Chief Executive Officer of the company, affirmed this commitment as a Guest Lecturer during the 2024 Faculty Lecture at the Obafemi Awolowo University (OAU), Ile-Ife, Osun State. The lecture, titled “Energy Security, Sustainability and Profitability in Nigeria; Advances, Challenges and Opportunities,” addressed the critical importance of finding solutions to ensure sustainable energy security for current and future generations.
Kyari emphasized the intensified competition for vital resources and the urbanization drive, projecting a doubling of Nigeria’s energy demand by 2050. Regarding challenges like pipeline vandalism and crude oil theft, he noted their impact on NNPC Ltd.’s operations. The establishment of a command-and-control center has played a crucial role in detecting and destroying illegal refinery sites and removing illegal connections, addressing vandalism across operating corridors since 2021.
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Kyari acknowledged the severity of vandalism and oil theft and hinted at a strategic shift, focusing on increased products trucking and storage in underground tankages at NNPC filling stations nationwide. He highlighted NNPC Ltd.’s expanded retail assets, making it the largest single downstream company in sub-Saharan Africa after acquiring OVH retail stations and associated downstream infrastructure in 2021.
With NNPC Ltd.’s transformation into a fully commercial limited liability energy company following the passage of the Petroleum Industry Act in 2021, Kyari noted the removal of fuel subsidies, enabling the company to play a more active commercial role, ensuring profitability, and delivering greater value to Nigeria’s growing population.
Kyari called for collaboration between academia and the Oil & Gas Industry to address challenges related to energy sufficiency and sustainability. He emphasized the crucial role that academic communities, including prestigious institutions like OAU, play in safeguarding national energy security through research and collaboration with the industry.
