Honorable Rotimi Makinde, a former staff of the Petroleum Products Marketing Company (PPMC) and ex-member of the Federal House of Representatives, has cautioned the federal government against scrapping the Pipelines and Product Marketing Company.
In a statement released on Monday, Makinde emphasized the significance of the PPMC as a subsidiary of the Nigeria National Petroleum Corporation (NNPC). He stated, “The idea behind the creation of the Pipelines and Product Marketing Company cannot be overemphasized. PPMC, as a wholly-owned downstream subsidiary of NNPC, is primarily responsible for profitable and efficient marketing of refined petroleum products in the domestic market. It ensures supply efficiency, whether from domestic refining or imports.”
Makinde further highlighted the vital role of PPMC as the National Strategic Reserve Holder for PMS (Premium Motor Spirit) and a major supplier of PMS nationwide. He emphasized the potential of good management within the company to address issues causing losses and fatalities on Nigerian roads. Makinde expressed concern over the transportation of hazardous products using heavy vehicles and trailers, which results in road damage and unnecessary loss of lives. He advocated for utilizing the designated pipelines for the transportation of various products to mitigate such risks.
Citing examples, Makinde outlined the pipelines in different regions of Nigeria, underscoring the accidents and high maintenance costs incurred by the government due to reliance on road transportation. He urged President Bola Tinubu to reassess the ongoing concession and contracts for overhauling various depots, cautioning against the transfer of national assets to a select few individuals.
Makinde asserted that PPMC is capable of sustaining itself and operating effectively with proper management. He proposed the overhaul of the pipelines and their commercialization to achieve profitability in partnership with the government. Safeguarding the country’s pipelines was deemed essential, as oil and gas constitute major sources of revenue. Makinde stressed that leaving their management solely in the hands of a few powerful individuals would not be in the nation’s best interest.
In conclusion, Makinde advocated for retaining PPMC as a national asset, while urging improvements in management effectiveness rather than scrapping it altogether.