Tag: Minister of Petroleum Resources

  • Why nobody was indicted over alleged missing $49.8bn – Makarfi

    As former minister of petroleum Diezani Alison-Madueke prepares to stand trial in the United Kingdom for alleged corrupt offenses in Nigeria, reasons have been proffered why she or any other individual was not indicted in the infamous missing $49.8 billion proceeds to federation account.

    The former Chairman of the Senate Committee on Finance, Alhaji Ahmed Makarfi Wednesday told finance journalists in Abuja why the immediate past Minister of Petroleum Resources, Diezani Alison-Madueke was not indicted by the committee that investigated the unremitted $49.8bn revenue by the Nigerian National Petroleum Corporation.

    Makarfi who served as former governor of Kaduna state was the chairman of the committee that set up by the seventh senate to investigate the $48.9bn unremitted oil revenue following allegations raised by the then Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi.

    Makarfi said the terms of reference given by the senate to the committee, only mandated the committee to determine if the said amount was actually missing and unremitted to the federation account.

    However after the committee’s investigation he stated that “there was no evidence to show that the former minister was involved in the missing fund.”

    According to Makarfi, “some people expected us to indict Diezani, she must have committed some other offences but when you come to the issue of the revenue we were probing as regards that period, the NNPC never presented any document she tampered with or approved anything. Everything the NNPC did, they said they were the ones responsible and they are the ones accounting.”

    He then questioned that “on what basis will you go to an individual to indict that person. Nobody presented any memo, internal or whatever to show that for the period our probe covered, she gave any instruction as regards the missing revenue.”

    He said those accusing the committee of cover up were being economical with the truth, adding that in some of its recommendations, the NNPC was required to make refunds of over $5 billion to the coffers of government.

    Specifically, Makarfi gave reporters the copy of the report and it was recommended that “NNPC should refund and remit to the federation account the sum of $262 million being expenses it could not satisfactorily defend.”

    He dismissed claims in some quarters that the committee was compromised since it did not indict any official of government as a result of the unremitted revenue.

    The former Kaduna state governor and senator blamed the inability of the committee to indict individuals to the fact that “the report of the forensic audit conducted by the Office of the Auditor-General for the Federation was not made available to the committee contrary to the earlier understanding between the committee and the then Auditor-General for the Federation, Mr Samuel Ukura that the final recommendation of the committee should be based on the forensic audit report conducted by the Office of the Auditor-General.

    Brandishing the copy of the report before journalists, Makarfi noted that “we were given an assignment that was very specific, which was that $48.9 billion was not remitted into the federation account and in the course of doing our job, we were given additional task to find out how N700 million was being spent daily to subsidize kerosene.

    According to him “these were the two specific assignments given to us. For the first one we were to determine the amount that entered the federation account within a specified period of time and it didn’t have to do with so many aspects of NNPC operations such as strategic alliances, contracts and allocation of blocks.”

    Makarfi then disclosed that “at the end of the day we came out with findings that there was no certainty as to the amount not being remitted, as the CBN was not even sure how much was not remitted. As to the issue of indicating anybody, we didn’t indicate anybody because forensic audit was yet to be conducted then.”

    He explained further that “we had understanding with Auditor-General for the Federation that he will conduct a forensic audit which would be forwarded to our committee and we indicated this in our report to the Senate that when we receive the forensic audit report we will make specific recommendations on matters that have to do with individuals.

    “Maybe because we were leaving government, all our communications to the auditor general were ignored and we communicated to the senate that we were unable to get this audit report from the auditor general and our hands were tied.”

    Defending the integrity of his committee’s report, Makarfi noted that “when the National Economic Council appointed Price Water House to do the same audit but with a wider scope, their report and our own was not far apart. Mind you they had longer terms of reference and longer period to cover.”

    Regarding the controversial kerosene subsidy at that time, Senator Makarfi stated that “because of the sensitivity of the matter, I sought the permission of the senate president that I wanted to find out the truth even from the then President (Goodluck Jonathan) if he approved it (subsidy).”

    “He arranged it and I asked specific questions whether he was aware that subsidy on kerosene was being paid and he confirmed in the affirmative.”

    Read Also: There is hope for Nigeria – Makarfi

  • Wetin Diezani steal self?

    Wetin Diezani steal self?

    Her story ordinarily should be a simple one. Brilliant and beautiful. Good upbringing, good education, good jobs and the best of political appointments available. Educated in some of the best schools in the world. Rich and famous.

    But hers has become a complex story. A tale of claims and counter-claims. Welcome to the world of Diezani Alison-Madueke, until May 29, 2015 Nigeria’s Minister of Petroleum Resources.

    When she admitted battling cancer, not a few screamed ‘gimmick’. Between then and now, it has been one scary revelation of sleaze after another. Some samples:  A block of six units serviced apartments at number 135, Awolowo Road, Ikoyi. 21 mixed housing units of eight 4-bedroom apartments, two penthouse apartments of  3-bedrooms each and six 3-bedroom (all en-suite) terrace apartments in Yaba. A twin four-bedroom duplex in Lekki Phase one. And a penthouse on the 11th Floor in the Block B Wing of the building.

    There are also a large expanse of land at Oniru, Victoria Island, Lagos and a duplex  at 10, Frederick Chiluba Close, in the serene, upscale Asokoro District of Abuja. Those are not all. There are  a 6-bedroom en-suite apartment Aso Drive, Maitama, Abuja and 16 four bedroom terrace duplexes at No. Heritage Court Estate, located on Plot 2C, Omerelu Street, Diobu Government Residential Area, Phase 1 Extension, Port Harcourt. And more. And more.

    The Economic and Financial Crimes Commission (EFCC) says it has so far traced N47.2 billion and $487.5million to the ex-minister. The agency says Diezani has N23, 446,300,000 and $5milion (about N1.5billion) in various Nigerian banks. There is also a $37.5million Banana Island property, which has been taken over by the Federal Government. She denies knowledge of this proprty, which investigators said was bought using a proxy.

    And because of these revelations, not a few are calling for her head. But I beg to disagree. I do not have the facts that the EFCC has, but let us assume that Madam actually took this money.

    I dare say the money in her care as oil minister came from the Niger Delta. She is from Niger Delta, a true son of Bayelsa, which contributes a lot of the oil cash. So, she has simply taken what belongs to her. No wonder some of her people are asking: ‘Wetin Diezani steal self?

    You need to see what Madam’s people are facing in the creeks for you to appreciate my argument. On my stops in Bayelsa and other parts of the Niger Delta, I see poverty, see degradation, see rejection and see desperation.

    There are houses, made of wood, covered with palm front, which the owners must change from time to time as they wither away. There are imageries of luxury here and there, but in short supply. It is something many hear about and see when the rich choose to throw their weight about. So many children could not go to school.

    In some parts of the Niger Delta, they never see night. The multinational operating in these areas have their flow stations so close to homes and send out gas flares throughout the day. So, the only way to differentiate between night and day is to check their wrist watches.

    In many towns, oil pipelines are not underground. They are in the open. And often they burst or are burst and our soils and existence are damaged in the process.

    The people have shouted, protested and threatened violence over their fate, yet change has refused to come. It is as if the multinational also has another licence: to send them all to their early graves so that their leaders can have all the wealth for themselves, including the little they manage to spend on basic amenities. This environmental genocide, as some have called it, is having serious effects on the people. Strange diseases are killing the people. Pregnant women are developing strange allergies. Yet, health centres are ill-equipped to take care of their health needs. They have several people with aggravated asthma; there are increases in respiratory symptoms, such as coughing and difficult or painful breathing, chronic bronchitis and decreased lung function. Premature death is not uncommon.

    The truth is, the oil majors are more interested in the oil than in the people’s well-being. They can die for all they care. Oil is more important than man; that is their mantra.

    Agriculture, which has the potential to help our country, has no breathing space in the Niger Delta. The soils are polluted and where they are not, the people are not properly motivated. Everybody is just waiting for handout.

    The imageries I just painted are of Madam’s Niger Delta, yet the oil with which Nigeria is powered comes from there. This fact must have affected Madam and ensured she wasted not the opportunity to grab as much as possible for herself and her people. A bird told me that Madam actually planned to empower her people using the money she was taking on their behalf, but ill-health and witch-hunting from the present administration has made her unable to help lift her people out of poverty.

    Another thing that pains me in how Madam’s matter has been handled concerns America’s involvement. The other day they came out with a fact sheet, alleging all kinds of things against our own darling Diezani. They even claim to have the recording of a telephone conversation in which Madam was warning one of her partners not to live extravagant lifestyle so as not to give himself away as a common thief. They claimed she said she would not go down alone.

    Na wa for these Americans. Even the United Kingdom is also giving her hassles, asking her questions about money that is not their own. The money is Niger Delta’s money, not even Nigeria’s. The woman who has allegedly taken only a fraction of the money taken from her backyard should not be vilified. This vilification is bad, especially the foreign angle. Somebody should explain to these oyinbos that Madam has only taken what belongs to her.

    My final take: Diezani should file a case of violation of fundamental human rights against Nigeria, Britain and the United States at The Hague. Human rights as excuses for all sorts of things work very well abroad. She should provide them evidence that the oil cash she is accused of taking came from proceeds of oil taken from her backyard. I suggest that she should see ‘Invasion 1897’ by Lancelot Oduwa Imaseun, where the lead actor was able to argue that a Benin bronze head he attempted to steal from the British Museum actually belonged to him by virtue of his origin as a Benin man. He argued that the British stole it during the invasion and he only came to retrieve it. And he was freed.

    So, she should claim that Nigeria, through the Nigeria National Petroleum Corporation (NNPC) and their joint venture partners, stole the crude oil in her Niger Delta and thus deprived her and her people of the proceeds.  Freedom will sure knock at her door. er story ordinarily should be a simple one. Brilliant and beautiful. Good upbringing, good education, good jobs and the best of political appointments available. Educated in some of the best schools in the world. Rich and famous.

    But hers has become a complex story. A tale of claims and counter-claims. Welcome to the world of Diezani Alison-Madueke, until May 29, 2015 Nigeria’s Minister of Petroleum Resources.

    When she admitted battling cancer, not a few screamed ‘gimmick’. Between then and now, it has been one scary revelation of sleaze after another. Some samples:  A block of six units serviced apartments at number 135, Awolowo Road, Ikoyi. 21 mixed housing units of eight 4-bedroom apartments, two penthouse apartments of  3-bedrooms each and six 3-bedroom (all en-suite) terrace apartments in Yaba. A twin four-bedroom duplex in Lekki Phase one. And a penthouse on the 11th Floor in the Block B Wing of the building.

    There are also a large expanse of land at Oniru, Victoria Island, Lagos and a duplex  at 10, Frederick Chiluba Close, in the serene, upscale Asokoro District of Abuja. Those are not all. There are  a 6-bedroom en-suite apartment Aso Drive, Maitama, Abuja and 16 four bedroom terrace duplexes at No. Heritage Court Estate, located on Plot 2C, Omerelu Street, Diobu Government Residential Area, Phase 1 Extension, Port Harcourt. And more. And more.

    The Economic and Financial Crimes Commission (EFCC) says it has so far traced N47.2 billion and $487.5million to the ex-minister. The agency says Diezani has N23, 446,300,000 and $5milion (about N1.5billion) in various Nigerian banks. There is also a $37.5million Banana Island property, which has been taken over by the Federal Government. She denies knowledge of this proprty, which investigators said was bought using a proxy.

    And because of these revelations, not a few are calling for her head. But I beg to disagree. I do not have the facts that the EFCC has, but let us assume that Madam actually took this money.

    I dare say the money in her care as oil minister came from the Niger Delta. She is from Niger Delta, a true son of Bayelsa, which contributes a lot of the oil cash. So, she has simply taken what belongs to her. No wonder some of her people are asking: ‘Wetin Diezani steal self?

    You need to see what Madam’s people are facing in the creeks for you to appreciate my argument. On my stops in Bayelsa and other parts of the Niger Delta, I see poverty, see degradation, see rejection and see desperation.

    There are houses, made of wood, covered with palm front, which the owners must change from time to time as they wither away. There are imageries of luxury here and there, but in short supply. It is something many hear about and see when the rich choose to throw their weight about. So many children could not go to school.

    In some parts of the Niger Delta, they never see night. The multinational operating in these areas have their flow stations so close to homes and send out gas flares throughout the day. So, the only way to differentiate between night and day is to check their wrist watches.

    In many towns, oil pipelines are not underground. They are in the open. And often they burst or are burst and our soils and existence are damaged in the process.

    The people have shouted, protested and threatened violence over their fate, yet change has refused to come. It is as if the multinational also has another licence: to send them all to their early graves so that their leaders can have all the wealth for themselves, including the little they manage to spend on basic amenities. This environmental genocide, as some have called it, is having serious effects on the people. Strange diseases are killing the people. Pregnant women are developing strange allergies. Yet, health centres are ill-equipped to take care of their health needs. They have several people with aggravated asthma; there are increases in respiratory symptoms, such as coughing and difficult or painful breathing, chronic bronchitis and decreased lung function. Premature death is not uncommon.

    The truth is, the oil majors are more interested in the oil than in the people’s well-being. They can die for all they care. Oil is more important than man; that is their mantra.

    Agriculture, which has the potential to help our country, has no breathing space in the Niger Delta. The soils are polluted and where they are not, the people are not properly motivated. Everybody is just waiting for handout.

    The imageries I just painted are of Madam’s Niger Delta, yet the oil with which Nigeria is powered comes from there. This fact must have affected Madam and ensured she wasted not the opportunity to grab as much as possible for herself and her people. A bird told me that Madam actually planned to empower her people using the money she was taking on their behalf, but ill-health and witch-hunting from the present administration has made her unable to help lift her people out of poverty.

    Another thing that pains me in how Madam’s matter has been handled concerns America’s involvement. The other day they came out with a fact sheet, alleging all kinds of things against our own darling Diezani. They even claim to have the recording of a telephone conversation in which Madam was warning one of her partners not to live extravagant lifestyle so as not to give himself away as a common thief. They claimed she said she would not go down alone.

    Na wa for these Americans. Even the United Kingdom is also giving her hassles, asking her questions about money that is not their own. The money is Niger Delta’s money, not even Nigeria’s. The woman who has allegedly taken only a fraction of the money taken from her backyard should not be vilified. This vilification is bad, especially the foreign angle. Somebody should explain to these oyinbos that Madam has only taken what belongs to her.

    My final take: Diezani should file a case of violation of fundamental human rights against Nigeria, Britain and the United States at The Hague. Human rights as excuses for all sorts of things work very well abroad. She should provide them evidence that the oil cash she is accused of taking came from proceeds of oil taken from her backyard. I suggest that she should see ‘Invasion 1897’ by Lancelot Oduwa Imaseun, where the lead actor was able to argue that a Benin bronze head he attempted to steal from the British Museum actually belonged to him by virtue of his origin as a Benin man. He argued that the British stole it during the invasion and he only came to retrieve it. And he was freed.

    So, she should claim that Nigeria, through the Nigeria National Petroleum Corporation (NNPC) and their joint venture partners, stole the crude oil in her Niger Delta and thus deprived her and her people of the proceeds.  Freedom will sure knock at her door.

  • FG to boost revenue from oil bloc sale, licence renewals

    FG to boost revenue from oil bloc sale, licence renewals

    Collection of outstanding royalties and renewal of leases expiring in 2017 would form a major source of accelerating  Federal government revenue accruable from oil and gas resources, Minister of Petroleum Resources, Ibe Kachikwu has said.

    Kachikwu, during the  2016/ 2017 budget defence session at the House of Representatives yesterday said oil and gas regulatory agencies are expected to attract investments, implement Memoranda of Understanding (MoU) and investment road shows in the United States of America, Asia, Middle East and Europe.

    Furthermore, Federal Government is also expected to conduct oil blocks allocation and marginal fields’ award, track gas flare commercialisation and develop gas infrastructure and investments, he said .

    Saying that concerted efforts would be directed towards refinery revamp, focus on downstream issues in in and operations, resolve Niger Delta militancy issues, stabilise oil production, the Minister also explained that priority would be given to tracking of oil production to destinations, develop agreement/framework for attachment opportunities with International Oil Companies (IOCs) and partners as well as complete new Joint Venture Cash Call roll out system.

    kachikwu“In retrospective, 2016 was a challenging year for the Nigerian economy which relied solely on oil. It is imperative that lessons learned must inform our plans for reforming the sector to bring real change to the citizens.

    “Our focus must be in promoting efficiency, formulating relevant policies, putting in place string infrastructural development especially joint venture in gas and domestic refining capacities, attraction of new Foreign Direct Investments (DFIs) and stabilising the statutory and regulatory environment of the sector,” he said.

    In addition, he informed the Committee that attention would be focused on the gazette of new policies on PE and gas, fast-track the passage of petroleum fiscal policy and engage in various pre and post Petroleum Industry Bill (PIB) activities for which N150m was appropriated for this year.

    [news_list display=”tag” tag=”Niger Delta” count=”2″ show_more=”on”]

    The Mjnister however listed some of the challenges confronting the Ministry which include underfunding and untimely releases of appropriated funds; weak oil and gas infrastructure which impacted on power to gas initiative; pipeline vandalism, oil theft and willful spillage; insecurity especially in the Niger Delta area; and absence of enabling law (PIB is still a draft form).

    He, however, assured that the Ministry is determined to achieve its set goals for  2017, saying, “There’s an urgency attached to the recovery of economy and petroleum sector is crucial to its attainment.

    “The sector must provide a very robust income stream for the economy through petroleum and gas in particular,” he added.

  • Buhari to minister: stimulate economy with petroleum 

    Buhari to minister: stimulate economy with petroleum 

    …Kaxhikwu vows to raise $20b

     

    President Muhammadu Buhari Thursday launched the Nigeria Oil and Gas Industry Roadmap tagged “The 7 Big Wins”,” and urged the Minister of Petroleum Resources to maximize petroleum resources to  stimulate the economy.

    Speaking during the public presentation at the Banquet Hall of the Presidential Villa, Abuja, he said: “Therefore, the task before the Ministry of Petroleum Resources is to maximize the potentials and opportunities across the whole range of the Oil and Gas industry to stimulate our economy in spite of the current challenges.”

    He admitted that the industry presently remains critical to the nation’s economy in spite of her challenges.

    He stressed that the “golden era of high oil prices may not be here now, but Oil and Gas resources still remain the most immediate and practical keys out of our present economic crisis.

    “The Oil and Gas still remain a critical enabler for the successful implementation of our budget as well as the source of funds for laying a strong foundation for a new and more diversified economy.”

    The President noted that as important as it is to ensure that Agriculture, Solid minerals and other critical sectors of the economy are supported to grow and contribute more to the nation’s economy, Nigeria still needs a virile and efficient oil & gas industry to take care of her foreign exchange requirements.

    According to him, this is a national imperative and a core thrust of the nation’s economic policy.

    Continuing, Buhari said “Therefore, the task before the Ministry of Petroleum Resources is to maximize the potentials and opportunities across the whole range of the Oil and Gas industry to stimulate our economy in spite of the current challenges.

    “To do this certainly requires creativity, innovation, technology and robust partnership amongst various stakeholders.”

    The President called for the dire need to instill a new culture of transparency and efficiency in the industry, streamline operations along best practices by championing and implementing strategic reforms at every layer of the industry.

    He noted that this “will help us improve oil and gas production, explore our frontier basins, improve our local refining capacity and above all build sustainable partnerships with the oil producing communities.

    “If we are able to plug the leakages, and tighten loose systems that characterized this industry in the days of high oil prices, we are convinced that we can do even more with the little that we are getting at the moment than we did even in the time of plenty.

    ”  As you are aware, recent developments in the Niger Delta have temporarily limited our oil and gas production and supplies. However, let me reaffirm that, whatever challenges we are currently facing in the region, our resolve and capability to work with all stakeholders to restore normalcy will guarantee success.”

    Speaking, the Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu explained that  disclosed that the major thrust of the programme is to raise government’s revenue from the oil sector through cutting down on project contracting cycle, ensuring 100 per cent local refining by 2019 and the commercialization of gas flaring.

    He further stated that the country would ensure that it finds every oil that is available in every part of the country, with increased private sector participation, while it intends to raise $5 billion and $20 billion in the short and long term respectively, for the Federal Government.

  • TUC to Buhari: relinquish minister of petroleum position

    TUC to Buhari: relinquish minister of petroleum position

    The Trade Union Congress (TUC) Tuesday asked President Muhammadu Buhari to relinquish the position of Minister of Petroleum and Mineral Resources because the office is too critical to the economy to be combined with the office of the President and Commander-In -Chief.

    According to the congress, the perfect candidate for the job should be someone who has the necessary knowledge, experience and competence that would directly supervise the affairs of the ministry and report to the president.

    TUC however noted that although the position of the Minister of State for Petroleum and Mineral Resources should remain as a junior minister in the ministry, a different Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC) should also be appointed to directly supervise the affairs of the NNPC.

    Its President, Comrade Bobboi Bala Kaigama, made this call at the “Save Nigeria Oil and Gas Industry Round Table Conference in Abuja.

    He said: “There is cogent need for appointment of a substantive Minister of Petroleum and Mineral Resources. The ideal candidate for this should be someone who has the necessary knowledge, experience and competence, and who would directly oversee the affairs of the ministry and report regularly to the President.

    “That position is too critically important to the economy to be subsumed as one of the many offices or portfolios of the President and Commander-in-Chief. Of course the position of Minister of State for Petroleum and Mineral Resources should continue to exist as a junior minister in the ministry. A separate Group Managing Director (GMD) of Nigerian National Petroleum Corporation (NNPC) should also be appointed to directly supervise the affairs of the NNPC.”

    The TUC boss added that all the appointees must be persons of bold, incorruptible and sound principles.

    Kaigama pointed out that the cabals in the sector emerged due to corruption in the corporation.
    He stressed that “it is high time we halt the ugly trend whereby members of the cabal are paid billions of naira for ‘fuel imports’ that never reach our shores.”

    In his address, the President, Nigeria Labour Congress (NLC), Comrade Ayuba Wabba, said that Nigeria is the worst case scenario in the management of oil and gas wealth in the world.

    He told a story of his colleague in Ghana that revealed that his country is guarding against the Nigerian experience in her fledging oil sector.

    The labour leader noted that the problem in the oil and gas industry is not lack of law but adherence to the laws.

    He advised Nigerians to oppose anyone that flout the law, adding that he refused to pay N200 per liter for the  petrol he bought  in a station in Kaduna State two weeks ago because the pump price is N86 per litre.

    Chairman of the occasion, Ambassador Paddy Njoku in his address said that for government to achieve the aims of the Nigerian Content Monitoring Board Act , it is vital to continually collaborate with industry stakeholders to ensure the effective implementation and enforcement of the act.

    He sought the passage of the pending Petroleum Industry Bill (PIB) into law in order to strengthen the progress that the board has made.

    In his presentation, Dr. Louis Brown Ogbeifun, submitted that “it is better to have a not too perfect PIB that could be reviewed in the next few years than allow the status quo to remain as it has been these last 16 years.

    “Stakeholders should close ranks as the death of the oil and gas industry shall have ripple effects on the state of the Nigerian economy as we still run a monolithic economic system.”

     

  • Fuel scarcity is sabotage – ASUU

    Fuel scarcity is sabotage – ASUU

    The Academic Staff Union of Universities (ASUU) says the persistence fuel scarcity faced by Nigerians is part of the ongoing sabotage in the political system.

    Dr Nasir Fagge, the national president of the union, told the News Agency of Nigeria (NAN) in Lagos after paying a courtesy visit to Prof. Olanrewaju Fagbohun, the Vice-Chancellor, Lagos State University (LASU), Ojo.

    Fagge alleged that the fuel scarcity was created by some ‎group of people, who were used to stealing public funds.

    He said the saboteurs created the scarcity to build a brick wall for the present administration, for failing to pay subsidy on fuel.

    According to him, the government is supposed to consider and analyse all the problems that may arise before removing the subsidy.

    “All the problems arising now should have been envisaged and addressed before removing the subsidy.

    “Government is supposed to know that some people will try to frustrate its effort and should have pre-empt that,’’ he said.

    According to the ASUU president, it is also wrong for political office holders to make unfulfilled promises to Nigerians about when the fuel scarcity will end.

    He advised government officials to always inform the citizens about the true situation of an issue‎ on regular basis, rather than toying with their emotions, only to apologise later.

    “How will a government official utter conflicting statements that the fuel scarcity will be resolved on April 7, but later said it will be in the second week in April. That is unfair.

    “Government officials should be held responsible for their promises and anyone who makes promise and failed to fulfill it should be eased out of the system,’’ he ‎said.

    The ASUU president ‎ called on President Muhammadu Buhari, who doubles as the Minister of Petroleum Resources, to urgently save Nigerians from the current hardship the fuel scarcity had brought upon them.

     

  • ‘ $20b investment needed yearly in downstream’

    The oil and gas industry requires an annual  investment of $20 billion yearly, the Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, has said.

    Mrs. Alison-Madueke, who was represented at the 8th Oil Trading Logistic Africa Downstream Expo, by the Deputy Director, Gas, Department of Petroleum Resources (DPR), Oliver Okparaojiako, said besides the required $20 billion annual investment to support the oil and gas sector’s activities, private sector participation is crucial in attracting additional funding at all levels.

    She said the federal government is committed to institutionalising appropriate policy framework to foster investment and competition, stating that there is need to stop the fuel subsidy system.

    She said fuel subsidy is unsustainable adding that the stunted growth of the downstream sector is attributable to the distortion introduced to the market as a direct result of the regulated regime.

    There is need to eliminate this convoluted price subsidy and stimulate competition across the value chain, she said, insisting that the issue of subsidy removal cannot be over flogged.

    According to the World Bank, subsidy on petroleum products in Nigeria and other oil-producing African countries would be unsustainable in the medium term.

    “The truth is that heavy subsidy is an unsustainable expenditure even on the long term. It generally promotes energy inefficiency and imprudent consumption. Over the last 10 years Nigeria has taken important steps towards a more deregulated downstream. To provide a competitive market environment and sustain supply, the downstream should be fully deregulated. This is one of our proposals in the Petroleum Industry Bill awaiting passage by the National Assembly.”