By Darlington UDOBONG
Media practitioners in Akwa Ibom State have called on the Nigerian National Petroleum Company Limited (NNPC Limited) to recognize the state as a significant business hub that deserves priority in terms of investment and comprehensive Corporate Social Responsibility (CSR).
This appeal was made during a recent media roundtable in Uyo, which addressed some of the challenges that have plagued NNPC Limited. The discussion highlighted the company’s reputation for inefficiency and the scrutiny it has faced over the years.
Before the Petroleum Industry Act (PIA) transformed NNPC into a limited liability company, the organization, then a corporation, had consistently operated at a loss, relying on government support to stay afloat.
The roundtable also explored the pricing of petroleum products and the regulatory challenges NNPC Limited faces. It was noted that NNPC Limited itself is regulated by both the Nigerian Upstream Regulatory Commission (NURC) and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Under the PIA, two regulatory agencies govern the oil and gas sector: NURC and NMDPRA. NURC is responsible for the technical and commercial regulation of upstream petroleum operations, including the acquisition, management, and disposal of property, as well as the issuance of licenses and leases for upstream activities. NMDPRA oversees the midstream and downstream sectors, including the granting of licenses or permits, while the Minister of Petroleum is responsible for approving the establishment of refineries based on NMDPRA’s recommendations.
Regarding who sets the prices of petroleum products in Nigeria, it was emphasized at the roundtable that prices are determined by market forces of supply and demand, with crude oil prices being the main factor influencing pump prices. NNPC Limited was absolved of direct responsibility for pricing, with the Federal Ministry of Petroleum Resources, NURC, and NMDPRA being identified as the key players in price regulation.
To reduce the burden on NNPC Limited, the media practitioners recommended that the company adopt more practical CSR initiatives, particularly in Akwa Ibom State. Suggested areas for CSR include community development projects, environmental sustainability, employment and skills development, health and education programs, and partnerships with local stakeholders.
The discussion concluded that by focusing on these areas, NNPC Limited could build goodwill and strengthen its relationships with communities in Akwa Ibom and across Nigeria, aligning its business objectives with national development goals.
The roundtable also urged NNPC Limited to improve its communication by proactively sharing its plans and initiatives with Nigerians, rather than frequently being on the defensive.
