The Nigerian Extractive Industries Transparency Initiative (NEITI) has suggested a substantial reduction of crude oil allocation to the Nigerian National Petroleum Corporation (NNPC).
The outgoing Executive Secretary of NEITI, Mrs. Zainab Ahmed, gave this charge in Abuja at a valedictory ceremony held in her honour on Monday.
According to her, of all the crude allocated to domestic refineries, not more than 28 percent is utilised while about 35 per cent is exported.
The revenue from the exported crude, she said, is spent on financing the operations of the NNPC.
But she insisted that if the Federal Government prunes the crude allocation to the corporation it will be compelled to seek other means of financing and become more efficient.
The reduction of crude allocation to the refineries, she reiterated, will make the corporation to improve their performance.
“My advice and what NEITI has been recommending is that we should reduce the level of crude oil that we allocate to NNPC. We have said over time that that will serve as an incentive for the refineries to really improve in their performance capacities, because there is this crude oil that is allocated about 20 to 28 per cent of it is refined and about 30 to 35 percent of it is exported for NNPC’s own account.
” So if we reduce what we allocate to NNPC today, the refining capacity plus small margin, it would improve more capacity development for the refineries.”
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