Sopuruchi Onwuka

Players in the Nigerian downstream petroleum industry have called on government to coordinate deep pool of industry data to provide vision and direction for the market operations.

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At a virtual seminar on “The Importance of Data and Automation in the Downstream Business,” local technology providers, international oil market intelligence providers and regulators joined MOMAN in highlighting the role of data in casting projections that prepare the players for market fluctuations.

The Oracle Today reports that the Nigerian downstream petroleum industry has remained the most opaque in the energy sector, leading to a riot of claims over the actual numbers of that guide players on demand and supply in the market.

The most vexed question remains the actual volume of petrol consumption in the country as the prime index for calculating state sponsored subsidy which has jumped from about N800 billion litres in 2014 to N1.4 trillion in 2015 and whopping N4.3 trillion in 2023.

The Nigerian National Petroleum Company Limited (NNPCL) has in the period consistently upgraded that nation’s average daily consumption of petrol from 50 million liters to over 70 million liters to justify subsidy claims.

Industry groups including the Manufacturers Association of Nigeria (MAN); Nigerian Association of Chambers of Commerce, Industry and Agriculture (NACCIMA); Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and even some marketing groups in the petroleum market have all projected data showing far less local consumption patterns than the NNPCL’s figures.

Data from several industry groups conflict on the level of economic activities that is fired with over 70 million liters.

Head of Political Consulting at VIISAUS, Mr Ikponmwosa Aikhionbare, who spoke at the virtual session on Friday hinted that the consumption pattern projected by official data on the industry is at variance with per capita income and gross domestic product (GDP) of the country.

He said accurate historical data are needed to make forecasts that prepare players to follow seasonal demand directions in order to prevent overstocking and understocking at different times of the year.

He made it clear that efficient data pool for the nation’s downstream petroleum industry have become critical to urgently enhance efficiency, improve safety, mitigate losses, guarantee product quality and plug overall gaps in information sharing.

Executive Secretary of MOMAN, Mr Clement Isong, noted that variegated data from different shades of the industry are not well processed for useful deployment, pointing at the need for development of solid data infrastructure that would guarantee reliable window on the industry.

He challenged regulators to position the downstream petroleum industry to be data driven by investing in data infrastructure, publishing updated data regularly and providing clear direction for players in making investment decisions.

Chairman of MOMAN, Mr Olumide Adeosun, noted that data remain the life blood of industry operations and urged players and stakeholders to efficiently analyze available data to produce consumable information.

He stressed that efficient and accurate data seamlessly resolve disputes around credibility of figures advanced by stakeholders for the purpose of economic planning.   

In recommending data based projections on market demand and supply, Mr Adeeosun who is the Managing Director of Ardova Plc pointed out that data driven projections afford the industry clear and anonymous information and evidences without staging arguments and confrontations among stakeholders.

Other speakers at the seminar which was hosted to mark the World International Data Day include the Vice President in charge of Crude at Argus Media, Mr James Gooder; Founder and CEO o Allegro Technologies, Mr Obinna Muo; and a team from the Nigerian Midstream and Downstream Regulatory Authority (NMDRA).