Nation
‘Without Alternative Energy, Petrol Price’ll Rise on Subsidy Removal’
The Department of Petroleum Resources (DPR) has warned that the pump price of petrol in the country may rise up to as much as N1,000 per litre when petrol subsidy regime comes to an end without an alternative energy source.
The DPR stated this just as some oil and gas experts have advocated for a measure from the government that will ensure that Nigeria gets commensurate value from its abundant oil and gas resources like its fellow oil producing nations.
The Director of DPR, Mr. Sarki Auwalu, said this while responding to questions and comments generated by a paper he delivered in Lagos, recently, at the Second Quarter, 2021 Business Dinner of Petroleum Club, Lagos.
The topic of the paper was, “A Discussion on the Future of the Nigerian Petroleum Industry.”
The questions and comments came from a former Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Funsho Kupolokun; political economist and Founder of Centre for Values in Leadership, Prof. Pat Utomi; Production Geologist at Shell Nigeria, Mr. Adedoyin Orekoya; and Chairman of AA Holdings, Mr. Austin Avuru; amongst others.
Responding to the subsidy concerns and the disparity in the petrol consumption figures given by NNPC and the DPR, as raised by Orekoya, Auwalu, acknowledged that Nigeria was spending so much on petrol subsidy.
He said eliminating it would require making alternative fuel available to Nigerians and that failure to do that will plunge Nigerians into paying higher petrol prices when subsidy is removed.
He stated that Nigerians may be paying as high as N1, 000 to buy one litre of petrol in the country when subsidy on petrol is removed and when the alternative energy or autogas gas policy becomes fully operational.
He, however, said the alternative fuel regime comes with initial cost as it will lead to spending $400 to convert one vehicle from running on petrol or diesel to running on either Liquefied Natural Gas (LNG) or Compressed Natural Gas (CNG).
Auwalu maintained that converting eight million public vehicles currently present in Nigeria to gas-powered will cumulatively cost $3.2billion to achieve.
He said, “So, to eliminate subsidy, they don’t call it subsidy anymore now, it’s under-recovery of purchase. So, to eliminate under-recovery, what you need is alternative fuel. Without alternative, you will subject people to higher prices and that is why we go for price freedom.
“As at today, there are 22 million cars in Nigeria. Eight million are for public use. Imagine if you want to convert every car into gas, the average cost of conversion is $400. Converting eight million cars requires $3.2billion. To do that, there are a lot of environmental investors which can invest and recover from the sale of gas and we are encouraging that.
“Once that is achieved, you will see that PMS can be sold at N1,000. After all, the average distance covered by one gallon equivalent when you compare it with LNG or CNG with respect to energy for mobility, is 2.7 against one; one for PMS, 2.7 for LNG or CNG.
”So, with that advantage, you will see that it creates opportunity for this industry again. The issue of subsidy, volume will all vanish and that is what we are working towards.”
He, however, warned that the rise in Nigeria’s local refining capacity as seen in the coming on stream of a number of refineries in the country without a corresponding increase in the country’s oil production volume may threaten the country’s membership of the Organisation of Petroleum Exporting Countries (OPEC).
The director lamented that out of Nigeria’s over 7,100 reservoirs and its mature basins, the country was recovering just as low as about 1,000, a situation he said, needed the collaboration of all industry players to find a solution to before Nigeria gets evicted from OPEC due to low contribution.
“How do we now get the national production capacity so that we export more, we consume more? Today, we have huge additional capacity in domestic refining. If we don’t increase the production, we have to get out of OPEC, because you can’t be a net consumer to stay in exporting countries.
“So, the challenge is for all of us. As the refining capacity is increasing, we have to now get production capacity to increase so that we remain the net exporter. We believe this will guarantee and fortify the future,” he said.
Responding to Kupolokun’s question on the need to address the low contribution of the oil and gas sector to the country’s Gross Domestic Product (GDP), which is less than 10 per cent, Auwalu attributed the abysmal contribution to lack of deep investment into the value chain of the sector as well as the export mentality of the players.
According to him, only few players, mostly indigenous companies, have the mentality of ensuring that more output, especially with respect to gas, was given to the domestic market to power the country’s economic growth.
He said there was need to focus on domestic market in order to grow the sector’s contribution to GDP.
He explained what the department and the Federal Government were doing to address the two-pronged challenge of energy transition and the transition from the international oil companies (IOCs) operating in Nigeria, who are divesting out of the country, leaving the indigenous oil companies to take over from them.
Auwalu said the department had foreseen such situation and had planned ahead by setting up the Oil and Gas Excellence Centre to equip local companies to be able to fill the gap created by such transition.
“Now, we are saddled with two transitions: energy transition and transition from IOCs to NOCs. Why did we establish Nigerian Oil and Gas Excellence Centre? It’s because of this. We’ve seen this coming; we thought it twice before now.
“It is our duty to make those companies functional, and to do that, we need to establish a centre of excellence that will help in the migration from IOCs,” he explained.
Also reacting to the need for scenario planning and the possibility of galvanising the private and public sector to work together to increase the value of oil and gas to the economy, as proposed by Utomi, the DPR henchman noted that the agency had transformed from mere regulator to business enabler and opportunity provider and was working to maximise the value of the sector to the economy.
Auwalu maintained that as a business enabler, DPR was after creating an enabling environment for operators to work, produce, make returns on their investments and pay taxes and royalties to the government as while providing employment to Nigerians.
The three_days championship, themed “27th Democracy & 3rd Year Anniversary of President Ahmed Tinubu Inter-Senior Schools Debate Championship,” opened on Monday at Government Girls Secondary School, Rumueme, Port Harcourt.
The participating states are Ebonyi, Abia, Delta, Sokoto, Yobe, Kwara, Enugu, and host state Rivers. Each state is represented by its top debaters selected through state-level contests.
Declaring the event open, the Rivers State Commissioner for Education, Dr. Peters Nwagor, said the championship goes beyond winning trophies. He described it as a national investment in the next generation of leaders.
“This platform is for nurturing young minds,” Nwagor said. “It builds critical thinking, research skills, confidence, effective communication, and the ability to engage constructively with views different from one’s own. These are the very qualities upon which responsible leadership and nation-building are founded.”
The Commissioner commended the organizers, participating schools, teachers, and coordinators for their commitment to promoting intellectual excellence among Nigerian youths.
He urged the students to compete with confidence, discipline, and respect. “Debate is not merely about winning an argument,” he noted. “It is about listening carefully, reasoning with clarity, presenting your evidence with honesty, and having the grace to learn from others. Let the quality of your ideas and the strength of your character define your participation here.”
Nwagor assured the participants that Rivers State is proud to play its part in raising a generation that will bring bold and innovative solutions to the country’s challenges. He wished all teams a rewarding, memorable, and successful championship.
Earlier in his welcome address, the National Coordinator of the President’s Schools Debate Nigeria, PSDN, Elder Dare Oritu, called the event a “gathering of minds” drawn from different parts of the country.
According to Oritu, debate is about three things. “It is about _unity_. It brings us together from different schools and backgrounds to learn from one another. It is about _broadening the mind_. It teaches you to think deeply, to listen well, to ask ‘why,’ and to defend your ideas with facts and respect. It is about _preparing you for leadership_. The problem-solvers and decision-makers of tomorrow are in this hall today.”
He reminded the students that debate is not a contest of aggression. “Debate is _not a fight_. We challenge ideas, not people. It is _not about who is better_. And it is _not do-or-die_. We win with grace, and we learn with humility,” Oritu said.
The PSDN National Coordinator encouraged all participants to compete with integrity, speak with clarity, and leave wiser than they came. He wished them the very best throughout the competition.
Highlights of the opening ceremony included the official draw for debate matches, administered by PSDN officials. The pairings will determine which states face each other in the preliminary rounds as the battle for the 2026 national title begins.
Amadi Akujobi
Centre Manager of NIIT Port Harcourt, Mr. Precious Ogulu Tom, said the institute is always excited to induct students into cybersecurity because it is one of its flagship courses with strong international recognition. He noted that the centre’s performance has earned it high ratings from ICSS, adding that in the past academic year, more than 20 students passed ICSS certification exams.
According to him, beyond the NIIT certificate, which is globally recognized, students also proceed to ICSS and complete their courses without difficulty. He credited the faculty for maintaining standards and said NIIT remains the leading ICT training institute in Port Harcourt and Rivers State.
Tom said NIIT has a presence in all major cities in Nigeria and its headquarters in India, with training covering all areas of ICT. He added that every year the institute produces at least one first-class graduate in Software Engineering from partner universities such as Middlesex University and the University of Sunderland. He described the institute’s approach as practical and hands-on.
On fees, he addressed comments about cost online, saying quality training requires investment. “Does anything good come easy? Nothing good comes easy,” he stated. He explained that students receive industry-standard books and globally recognized certificates, and invited parents and prospective students to register with NIIT for value-driven training.
Also speaking, Principal Instructor for Cybersecurity and Ethical Hacking, Mr. Nyekwere TamunoTonye, said the cohort began in February with high expectations and completed the programme in six months. He said one notable achievement was that the class remained largely intact despite challenges, including system breakdowns and family issues. “At the end of this six months, we never lost anybody. That is the greatest. So, we give God the glory,” he said.
Nyekwere said students were exposed to multiple domains in cybersecurity and received strong practical training. He told the graduands that their real learning starts now and urged them not to relent. “This is no longer the time you go back to play,” he added.
He emphasized that the institute equipped them not only with technical and practical skills but also with character and a mindset for continuous learning. He noted that no institution, including Harvard or Yale, can teach everything, but good schools set the path, which NIIT has done.
He charged them to deploy their skills positively. “I don’t want to see any of you being arrested by the EFCC tomorrow. I don’t want to see any of you being arrested by the police. I don’t want to see any of you being arrested,” he said.
Senior IT Counselor and Head of Sales and Marketing, Mrs. Igbigbari Vincent-Eretoru, congratulated the graduands for completing the programme and defending their presentations according to NIIT academic standards. She said certificates are awarded in character and learning, and urged them to be good ambassadors of NIIT Port Harcourt by applying what they learned.
Responding on behalf of the graduates, Class Section Head Tamunotonyesia Epelle said many came in with questions and uncertainty about specializations but left with clarity, confidence, and technical competence gained through practical assignments, teamwork, and the instructor’s push to avoid mediocrity.
In a statement signed by the Project Coordinator, Prof Nenibarini Zabbey, to commemorate the anniversary, HYPREP described the anniversary as a significant milestone in Nigeria’s environmental restoration efforts, noting that the project has made remarkable progress in implementing the recommendations of the landmark UNEP report released on August 4, 2011.
The UNEP report had revealed extensive oil pollution across Ogoniland, severe environmental degradation, and serious public health risks resulting from decades of petroleum operations. It also recommended an initial $1 billion fund to commence the cleanup of the affected communities.
According to HYPREP, the Federal Government formally launched the Ogoni clean-up in 2016, while the Project Coordination Office was established in 2017 to drive the implementation of UNEP’s recommendations.
Zabbey said the current administration has continued to prioritise the project under the Renewed Hope Agenda.
Providing an update on the cleanup, the Project Coordinator disclosed that 30 of the 65 contaminated sites identified by UNEP have been fully remediated, while work is ongoing at several medium- and high-risk locations. It also stated that more than 1.5 million mangrove seedlings have been planted as part of what it described as the world’s largest restoration of oil-degraded mangroves, with over 1,000 hectares of shoreline already rehabilitated.
Zabbey further revealed that 49 Ogoni communities have been connected to potable water schemes through multiple water projects and booster stations aimed at providing safe drinking water across the region.
In the health sector, he said the 100-bed Ogoni Specialist Hospital in Kpite and the 43-bed Cottage Hospital in Buan are nearing completion, adding that several existing health facilities have been upgraded with modern medical equipment, while five ambulances have been donated to improve emergency healthcare services. The Project Coordinator also disclosed that a three-year human health biomonitoring study is being conducted in collaboration with the World Health Organization’s International Agency for Research on Cancer (IARC).
On economic empowerment, Zabbey stated that the Project has created more than 8,000 direct jobs and trained thousands of Ogoni youths and women in various vocational and technical skills, including software development, cybersecurity, aviation, commercial diving, seafaring, mechatronics, and creative arts. The project also reported awarding scholarships to more than 1,000 students, providing grants to small businesses, and supporting persons living with special needs through skills acquisition programmes.
The statement further highlighted ongoing legacy projects, including the Ogoni Power Project and the Centre of Excellence for Environmental Restoration, which it said is about 96 per cent complete. HYPREP also welcomed the recent designation of the Ogoni Wetland as a Ramsar Site of International Importance and pledged to continue promoting biodiversity conservation and sustainable management of the ecosystem.
Marking the anniversary, Zabbey said the progress achieved over the past 15 years demonstrates the collective commitment of government, development partners, stakeholders, and local communities to restoring Ogoniland. He called for renewed collaboration to sustain the cleanup effort, promote environmental sustainability, and support the long-term development of the region. 3
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