Experts brainstorm way forward at the Nigerian Petroleum Downstream Industry and ARDA Virtual Workshop
The Nigerian Petroleum Downstream Industry, in collaboration with African Refiners and Distributors Association, hosted a virtual workshop aimed at addressing key challenges and outlining strategies to ensure a sustainable future for the petroleum downstream sector.
The workshop focused on risk management and self regulation, effective change management, and communication and stakeholder engagement.
The need for proactive planning and implementation of the “adoption of gas” initiatives as a transition fuel towards achieving Net Zero was highlighted. Safeguarding consumer interest in a deregulated environment was also underscored.
Risk Management and Self-Regulation
The immediate need to consistently limit and mitigate supply gaps and price volatility, related to exposure to international markets, and winning public support was highlighted.
Participants reiterated the importance of promoting best practices in Health, Security, Safety, Environment, and Quality (HSSEQ), embracing automation and technology, and managing customer expectations. These strategies according to them are essential for maintaining the industry’s competitiveness and resilience.
Effective Change Management
It was noted that the gains from removal of fuel subsidies can only be achieved through effective change management, identifying potential pitfalls and mitigation strategies.
This includes providing appropriate palliatives for public transportation and the transportation of agricultural produce as we journey towards full deregulation, improving access to foreign exchange and trade finance, ensuring strategic stock, and easing access to crude oil for refineries.
Additionally, the workshop discussed open access and optimising the country’s logistics infrastructure, including pipelines, pumping stations, and storage depots.
Participants suggested that in preparation for a fully deregulated market, there is a need for the Authority to continuously determine local refining capacity, project and request crude oil requirements from the Nigerian Upstream Petroleum Regulatory Commission.
To address the unmet national demand, it was advised that the Authority establish transparent, inclusive and competitive guidelines for importation. These guidelines, which would be a pathway for obtaining foreign exchange needs, should be made public and implemented in good time prior to the commencement of price deregulation.
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A need for Communication, Engagement, and Collaboration with Identified Stakeholders
Stakeholders present at the workshop emphasized the need for continuous industry engagement, collaboration, and public sensitisation to aid public buy-in on new policies by the government.
The importance of connecting to regional markets, positioning Nigeria as the regional refining hub, and fostering relationships with international service providers, including rating agencies, finance and governance institutions, and aligning with the goals of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP), was reechoed.
Ultimately, the collaborative workshop which provided data-driven insights into the sector’s growth potential, served as a platform for stakeholders to share knowledge and develop strategies to ensure the Nigerian Petroleum Downstream Industry remain a strong, competitive force while transitioning to a more sustainable future.
By focusing on risk management, effective change management, and stakeholder engagement, the industry can adapt and make significant contributions towards new jobs, economic growth and prosperity of Nigeria.
