The National Petroleum Policy (NPP) | KPMG | NG

The National Petroleum Policy (NPP)

The National Petroleum Policy (NPP)

The NPP demonstrates the Government’s resolve to transform the oil sector, as it covers a broad range of issues which have been of concern to all stakeholders. The focus of the Policy document, particularly on developing the gas sector, refining and petrochemicals industry, is highly commendable.

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The National Petroleum Policy (NPP)

The Federal Executive Council of Nigeria, on 19 July 2017, approved the National Petroleum Policy (NPP or the Policy) which articulates a vision for Nigeria to become a Nation “where hydrocarbons are used as a fuel for national economic growth and not simply as a source of income”. The Policy recognizes that Nigeria “…must…develop a petroleum industry where the value added in oil stream is realized, combined with a move towards a gas based industrial economy” and that “…the future for oil producers lies in …developing a value added sector of refining and petrochemicals” given the volatility in oil and gas prices.

The NPP demonstrates the Government’s resolve to transform the oil sector, as it covers a broad range of issues which have been of concern to all stakeholders. The focus of the Policy document, particularly on developing the gas sector, refining and petrochemicals industry, is highly commendable. The Policy also envisions a strong refining sector,
which will transition the refineries from selling only capacity to selling both capacity and products.

However, to achieve these objectives, it is important that the developed road map and action plan for the implementation of the Policy are properly monitored. There must also be a periodic evaluation of the short to long term targets/strategies proposed in the Policy. This will ensure that all potential issues are proactively identified and addressed.

Ultimately, the usefulness of the NPP lies in the willingness and ability of Government to faithfully and consistently implement the Policy once it is gazetted. Otherwise, it will become a Policy document in words only.

© 2017 KPMG Professional Services in Nigeria, a limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

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