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Tag: Minister of State for Petroleum

  • Kachikwu: ‘Nigeria’s compliance with OPEC’s deal stabilised prices’

    Nigeria’s compliance with the Organisation of Petroleum Exporting Countries’ (OPEC+) production cut deal in February helped to stabilise global oil prices.

    Minister of State for Petroleum Emmanuel Ibe Kachikwu, who stated this in an interview, said:  “We’re basically complying, effective February with the country’s pledged 53,000 barrel-a-day reduction.

    “The price fluctuations mean OPEC needs to be a bit more together, a bit more determined to try to defend the market,” he said.

    Nigeria actually boosted crude production by 52,000 barrels a day to 1.792 million in January, according to third-party estimates compiled by OPEC’s secretariat.

    However in February, the country was compliant with its agreed 1.685 million barrel-a-day limit, Kachikwu said, adding that the producers’ group will meet again in April to discuss whether to continue the supply reductions in the second half.

    Nigeria would have a hard time making deeper cuts, the minister said. “If more cuts need to come, there would be major challenges because between December and now we’ve had the Egina field come online,” Kachikwu said. The offshore field, operated by French energy giant Total SA, hasn’t yet reached its maximum production level of about 200,000 barrels a day, but may do so in March, he said. Some of that output is a light oil called condensate, which isn’t counted in the OPEC+ deal, and some is crude, he said.

    OPEC and allies agreed to reduce output by 1.2 million barrels a day in the first half of this year in order to prevent a supply glut.

    While the deal has contributed to a jump in crude prices of more than 20 per cent so far this year, implementation has been uneven, with Saudi Arabia cutting deeper and faster than promised and other nations including Russia going slow.

     

  • FEC approves N348.59 billion for Akwanga-Gombe road 

    The Federal Executive Council (FEC) has approved N348.59 billion for the road linking Akwanga though Jos to Gombe.

    This was disclosed by the Minister of Power, Works and Housing, Babatunde Fashola.

    He was with the Special Adviser on Media and publicity, Femi Adesina, Minister of Finance, Kemi Adeosun and the Minister of State for Petroleum, Ibe Kachikwu.

    Read Also:Enugu spends N40bn on road construction in two years

    According to Fashola, the project which will be completed in 48 months, covers 420.6 kilometers.

    He said “FEC approved N348.594 billion contract for the construction of 420.6 kilometers Akwanga-Jos-Bauchi-Gombe road. The project scope is the expansion of the current two-lane highway into a dual carriage way.

    “What is significant about it is that it completes the integration of the north central with the south east and the north east.

    “Council had previously approved the Abuja-Keffi Road and the Akwanga-Lafia-Makurdi Road all in the north central. In May this year, Council had also approved Nineth Mile Enugu to Makurdi road that connects the south east to the north central.

    “That completes the spine of the major movement of agro produce and other related produce. The construction period is 48 months.” he said

    The Council (FEC) also approved N12.104 billion for ecological projects across the country.

    Femi Adesina said that the approval covers twelve projects in the country.

    He listed the states for the projects to include Anambra, Lagos, Oyo, Akwa Ibom, Adamawa, Bauchi, Borno, Jigawa, Kaduna, Plateau and the Federal Capital Territory (FCT).

    Kachikwu said that the Council approved the installation of technology monitoring schemes and structures under Petroleum Equalisation Fund (PEF) at a total sum of N17 billion.

    According to him, it is for automated fuel system management and censor network.

    He said “The narrative is that we have all struggled with  this whole subsidy payment and how much is consumed in Nigeria, volumes of products moved out illegally and the whole impact on FAAC accounts.

    “The President has given a very serious mandate that we ought to rein in on this process. The essence of what PEF is doing is that this will enable us track refined petroleum product movement from the point of LC (letter of credit) opening from the vessels that come into Nigeria, up until the point where they are discharged into tanks in Nigeria, and from the tanks into trucks in Nigeria, monitor the trucks till they deliver the products into the storage tanks for the filling stations and they are discharged and sold.

    “So, that will produce a 100 percent wholistic monitoring of this production. For the first time we will be able to tell how much petroleum products we consume in this country. Because, there has been so much going on in terms of the movement of consumption numbers from thirty something million liters a day to 70 million liters to 18 million liters a day during the difficult times.

    “And the challenge the president has given me is to rein that in, let’s know what we consume in reality, let’s know where these products are going and this process will be able to track every truck.

    “So, a typical truck will be licensed with a driver, with a transport company, so if a truck misses, you can find the transporter and the company that takes responsibility.

    “So we expect this to be over a period of three years but we promise that within one year, the real effects of this will begin to show. Obviously you need time to train and to continue to improve the system. We hope that by the time we start doing the 2020 budget in 2019, we would have gotten to a point where a lot of the losses that you are seeing are being tracked and substantially impact will be made in monies that come into the federation accounts.

    “It will help us keep proper data repository of consumption in this country, destruction, data on all trucks that operate, total number of products received, what is sold out of filling stations and it is going to be a collaborative system that involves NNPC, DPR and PPPRA but situate quite frankly in PEF.” he said

    According to him, FEC also approved the revision of contract for the construction of NCMB’s headquarters in Yenagoa, Bayelsa State.

    He said that the project, which was awarded in 2015 at the sum of about N27 billion was on Wednesday revised to N42 billion.

    He said “It is one of the dramatic skyline in Yenagoa and has gone quite substantially far. This reasons for this increase was largely due to foreign exchange variables determinant which was initially about N157 to a dollar but today it is N305 to a dollar and still counting.

    “The whole idea is for contract to be completed. It is a 24 month contract and fairly far gone. We hope that once that is done, NCMB will stop paying rent in the series of buildings that it rented in Yenagoa.

    “But most important, the whole glamour of the south south states during the Vice President visit to the Niger Delta with me and the minister of Niger Delta was largely to see oil companies during foot hold in some of these south south states. The building is larger than what the NCMB needs and already talks are on with AGIP and a few of them who want to position their presence very effectively in some of these areas.

    “If we continue at this pace of construction, Mr. President should be able to commission that building between the end of this year and early next year,” he said.

     

  • Kachikwu, others to speak at 2018 Sub-Sahara Oil and Gas Summit

    The 2018 Sub-Sahara Africa Upstream Oil & Gas Summit and Exhibition, is gathering momentum with the Minister of State for Petroleum, Dr. Ibe Kachikwu together with the Group Managing Director, Nigerian National Petroleum Commission, (NNPC), Maikanti Baru expected to lead other speakers.

    The summit will hold in Abuja, from 11th to 13th of April under the themed, “Gearing up for Growth: Sub Sahara Oil, Gas and Power Oil Chain’’, and it is expected to attract many key industry players from across Africa and beyond.

    Speaking during a press conference in Lagos to announce the programme, the Chief Executive Officer of the Sub-Saharan African Oil and Gas Summit and Exhibition, Mr Dapo Ayoola, said the exhibition will provide a veritable opportunity for established oil and gas companies, government agencies, service providers, equipment manufacturers and new entries to interact and showcase their possibilities.

    Speakers lined up for the Summit include: the Minister of State for Petroleum, Dr. Ibe Kachikwu; the Group Managing Director, Nigerian National Petroleum Commission, (NNPC), Maikanti Baru; Mr. Bayo Ojulari, MD, Shell Nigeria Exploration & Production Company (SNEPCo); Dr. Joe Asamoah, MD, EnerWise Africa; Mr Powell Maimba, President, East Africa Petroleum Institute, Barrister Egbert Faibille Jnr., Acting C.E.O, Petroleum Commission, Ghana; Mr. Modestus Lumato, Tanzanian Petroleum Corporation; Mr. Tune Lemo, former Deputy Governor, CBN and Malam Mele Kyari, Group GM, Crude Oil Marketing Division, NNPC.

    Others are: Mr. Chimezie Emewulu, MD, Seamfix; Mrs. Oyeyemi Ladepo, Group GM, HR, NNPC; Mr. Ahmadu Sambo, Group GM, Finance, NNPC; Adewale Ladenegan, MD, Kaduna Refining & Petrochemical Company (KRPC); Mr. Paul Arinze, GM, Public & Govt. Affairs, ExxonMobile Nigeria, amongst others.

    According to him, Africa is the last true oil and gas frontier with more than 4,200 oil and gas blocks identified. Almost half of these blocks are open, subject to force majeure or in the application phase.

    “More that 80% of the 1,300 blocks in North Africa are licensed, while in Sub-Sahara Africa, it is estimated that only about 30% of 2,900 blocks are licensed. It is evident that many new opportunities still exist, especially for the exploration and production companies that are willing to take risks,” he said.

    He further stated that they also want to inspire young ladies in the Universities and Polytechnics to see the oil and gas industry as one that is encompassing for everybody.

    “So we have women in petroleum day where successful female practitioners based from HR or technical backgrounds, geoscientists, finance or petroleum engineers would come together and talk to the upcoming ones that there is an opportunity for everyone in the oil and gas. The women in petroleum section is a lovely one and we have invited top women across the continent,” he added.

    Read Also: Kachikwu: Nigeria needs $100b oil investments

  • Stronger, larger petroleum industry regulator coming – FG

    Stronger, larger petroleum industry regulator coming – FG

    The federal government has hinted that a stronger, larger petroleum industry regulator will emerge after the passage of the Petroleum Industry Bill.

    Speaking at one of the breakout sessions of the 2nd Nigerian Economic Summit in Abuja Tuesday, Minister of state for Petroleum Dr. Ibe Kachikwu said “we are still working to make it better, by the time the senate and the entire national assembly finishes what they are doing we are going to see a much stronger, a much larger independent regulator.”

    According to Kachikwu, “whatever model of PIB that we are pushing, the point that Dr Baru made is very, very key to see an independent regulator with very enormous powers, with less of political interference so that individuals could do their work and also whittling down the powers of the minister so that these institutions could work and work well.”

    Kachikwu noted that “the reality is that no one will work as a minister forever, you are going to hand over that portfolio. We should be looking for the system surviving and been able to work well, so it’s something that we are working with the Assembly very hard on and I think if you look at the issues that come up, there are a lot of emphasis on that independence.”

    Kachikwu also said “the federal government would develop Policies that ensures the global decline in fossil energy does not take Nigeria unawares, stating that government is already thinking in that direction.”

    Kachikwu who moderated a panel discussion on energy in a break out session with the Group Managing Director of NNPC Maikanti Baru said “the federal government is currently dealing with the fundamentals‎ of ensuring that the refineries work, and ensure availability of energy sources to meet our day to day energy needs.‎”

    Kachikwu noted that, “the NNPC would have to take over the commercial aspects because they are going to be the one deploying it. As the Refineries get kitted up, we would continue to look at new fossils development programmes, and will see a need to pump out policies that would enable Nigerians see the advantages in terms of costs.”

    Reacting to questions on the bidding for marginal fields, Kachikwu said “the government is determined to ensure transparency in the bidding process so that the public always gets to know who and who gets what and could monitor the progress.”

    ‎According to him, “‎these are some of the issues the Niger Delta communities are always inquiring about and indeed all Nigerians. The more transparent it is, the better for us. We are developing models to ensure better regulations geared towards transparency in the bidding process, and we would alert Mr. President as soon as we are done “Kachikwu notes further.‎”

    Maikanti Baru, the GMD of NNPC ‎ in his own remarks at the panel raised concern that only nine out 14 of those who won the bidding process for the marginal fields are operating a development he described as “not good.”

    He was however assured by the minister of state for petroleum, Ibe ‎Kachikwu that “the Ministry of Petroleum Resources would work closely towards ensuring that concerns and constraints that had hindered the remaining companies who have not swung into action in the marginal oil fields are appropriately addressed.”

  • Kachikwu’s memo aimed at inciting people against Buhari – Coalition 

    Kachikwu’s memo aimed at inciting people against Buhari – Coalition 

    A coalition of civil rights activists from Niger Delta region, Monday, asked security agencies to probe the leakage of the controversial internal memo the Minister of State for Petroleum, Dr. Ibe Kachukwu, sent to President Muhammadu Buhari alleging corruption in the Nigerian National Petroleum Corporation (NNPC).

    The coalition under the auspices of the Niger Delta Activist Forum (NDAF) said whoever was behind the leak had the sole motive of inciting the people against the President.

    The Convener of NDAF, Success Jack, in a statement called on the Inspector-General of Police and the Department of State Security (DSS) to investigate the source of the leak and persons behind it.

    The statement, which was co-signed by Prince Emmanuel Omoniyi and Efe Elliss said persons behind the leak of the eight-paragraph memo, which had pitted Kachukwu against the Group Managing Director, NNPC, Maikanti Baru, should be arrested and prosecuted.

     The statement said the development was shameful and gross display of disservice to the public service sector adding that the rules in the public sector forbade leakage of classified communication.

     “How did the letter get leaked to the public? Whose interest does the leakage serve?Why are the perpetrators of the leakage in so much of a hurry to vilify the person and character of Maikanti Baru even when the logic doesn’t apply?

    ” Is the leakage good for National security? We hereby call on the Director General of the Department of State Security, the Inspector General of Police and all security agencies to fish out the source and brains  behind the leak.

     “Secondly, some disgruntled political characters have over the past 48 hours spared no effort in drawing on easy sentiments, ethnic bigotry and geographic chauvism in trying to incite violence against federal oil and gas facilities in the region. 

    “We have resisted frantic attempts to spill southern bile against the state using Mr Maikanti Baru as their excuse and would continue to galvanize efforts to resist such attempts”

     “We also want to send a clear warning to all those who think they can use this incidence as an avenue to execute political misgivings against individuals or state to desist forth with or face the consequences. 

    “Painfully this unwarranted media hype and insinuation of corruption given to a letter that merely seeks clarifications from a senior Minister, is one that goes a long way to de-market the oil and gas industry in Nigeria with ripple effects on Nigeria as a whole.

    “This will no doubt deal a hard blow on global confidence in Nigeria’s oil and gas transparency quotient as it very naturally constitutes a most vicious device against foreign direct investments into the sector. 

    “It is however, our opinion that the National security adviser and all security agencies quickly liase with regulatory bodies of the media for better management of this matter to forestall further inciting of the general public”.

     The coalition in the statement said after reading the memo, it deduced that the award of all the jobs and contracts in question amounting to $25bn went through the NNPC Tender’s Board (NTB).

    Insisting that the contract went through due process, the coalition, however, criticised Baru for not bringing it before the board and its Chairman.

    The statement said: “It is, however, instructive to note that, Kachikwu is the Chairman of the board based on authority delegated by Mr  President but such delegation of authority in no way diminishes the legality of Mr President exercising those same powers, more so when he still remains the senior Minister. 

    “It is also important to state for emphasis that procurement requirements in cases such as this emphasise approval from the senior minister. Again it would be understandable for the senior minister to handle such matters under this schedule through capable and qualified aids.

     “It, however, appears to us that necessary links to reconcile records of accounts between the junior and senior minister is missing. While not been apologetically biased in favor of any of the parties involved, even the missive admits adherence to due process when it talked about the NTB. 

    “Finally, if these contracts were ratified and approved by Mr. President or the Federal Executive Council (FEC) headed by Mr. President as is the case here, then it should put a definitive end to these rather futile attempts to paint Mr. Maikanti Baru in in bad light by uninformed members of the public”.

  • FG begin discussions with illegal refiners

    FG begin discussions with illegal refiners

    NAEE: regularization of artisanal refineries will save economy

    Following the federal government plans to regularize illegal refineries into modular refineries, it has in the last few weeks commenced discussions with some of the operators of refineries.

    Meanwhile, the Minister of State for Petroleum, Dr. Emmanuel Ibe Kachikwu, who made this known Tuesday said “In the past few weeks, we have opened constructive discussions with some of these  has opened discussions with illegal refiners and government is working to ensure that the initiative is implemented.”

    He added that  the federal government will in this month start installment payment of JVC cash call.

    The minister was represented by the Executive Secretary, Petroleum Technology Development Fund (PTDF), Dr. Bello Aliyu Gusau spoke during the 10th conference of Nigerian Association for Energy Economics (NAEE), with the theme: “Energy, Economy and the Environment: The Interplay of Technology, Economy and Public Policy,” in Abuja.

    Describing the situation that Nigeria has found itself today as the one beyond price shock, the Nigerian National Petroleum Corporation (NNPC) Group Managing, Dr. Maikanti Baru, noted that militancy in the Niger Delta further worsened the economic situation of the country.

    According to the Group General Manager, Corporate Planning and Services, Umar Ajia  who represented the NNPC boss, “NNPC is to maximize our energy resource to forestall the reoccurrence of our present economic predicament.”

    The NNPC boss advised that it is also important to ensure that operators in the sector implement their obligations to the host communities.

    Speaking with journalists at the event, the association’s President, Prof. Wumi Iledare,  said that federal government’s move to regularize the illegal or artisanal refineries in the Niger Delta will save the economy.

    He pointed out illegal refining has been attractive because they operators are not paying for the crude.

    According to him, after a tax holiday, the regularized refineries will start paying for the crude and they will be trained on the technology in order to reduce environmental pollution.

    Iledare said : ” The only reason why the illegal refiners are making money is because they are not paying for the crude. Because if you look at the margin in refinery economics, it is the crude that is the driver. If someone is taking apt he crude and he is not paying for it it will appear as if it is profitable.

    “The technology is also crude which means they are not actually mindful of the environmental implications of refinery process. I think what the government is trying to do, is to find a way to make sure that they are educated enough to acquire the technology that will reduce environmental pollution and get them to pay for the crude.”

  • Kachikwu charges hydrocarbon council on speed, efficiency

    Kachikwu charges hydrocarbon council on speed, efficiency

    The Minister of State for Petroleum, Dr Ibe Kachikwu, has advised the newly-inaugurated council on hydrocarbons to speedily formulate policies that will address challenges in the oil and gas sector.

    Kachikwu gave the advice in Abuja on Tuesday at the resuscitation of the council.

    The Federal Executive Council presided over by President Muhammadu Buhari, on Oct. 5, gave the nod for the resuscitation of the council which had been in existence for some time.

    According to him, the council acts as an ombudsman that meets once yearly to review policies in the sector, bringing together ‎people from business, oil sector, oil communities and relevant ministries.

    Kachikwu said: “As you put together this hydrocarbon council, I urge all of you to take cognizance of so much that is going on in the Ministry of Petroleum.’’

    “It is one of the most challenging, exciting times we have in creating, develop the right policies, right principles to address frustrations that are in the system.’’

    He said there was so much to do in the industry.

    According to him, these include growth of the upstream through policies on oil and gas, passage of the long-sought-after petroleum industry bill and issues of Niger Delta security among others.

    “We’re setting for ourselves very comprehensive goals that we want everybody to participate in. We are taking the bull by the horn for every little problem that we have.

    “Those solutions shouldn’t stop at the ministry.

    “It should first begin with you, your various undertakings in the sector whether it’s as scholars, ministry representatives, investors, policy formulators, traditional rulers who provide framework.

    “Whatever capacity, everybody needs to have an input. We will study it. There is nowhere in Nigeria today where there is an urgency of yesterday as the petroleum sector.

    “Like I say, oil got us to where we are today. It is going to take oil to take us out of it.’’

    Speaking to newsmen after the event Kachikwu said the nation was not where it should be as per crude oil production and the bombing of the Forcados pipeline recently further hampered output.

    Earlier, the Permanent Secretary in the Ministry, Mrs Jamila Shua’ra, said the essence of the meeting was to “engender a bottom-up approach to policy making’’.

    “We had 30 memos presented from the council at its inaugural stage. I think that is a good way to start. Next year, we hope to have a more robust session.’’

    The News Agency of Nigeria (NAN) reports that stakeholders were drawn from oil producing states.

    Hydrocarbon is an organic compound consisting of hydrogen and carbon is a primary energy source.

    The majority of hydrocarbons found on Earth occur in crude oil, which Nigeria has large deposits of it.

     

  • FG to realize $15 billion investments from JV cash calls’ elimination

    FG to realize $15 billion investments from JV cash calls’ elimination

    The Federal Government on Thursday disclosed that it plans to end the era of joint cash calls with oil companies by next year.
    ‎
    The move, the Government said would result in investments in excess of $15 billion by oil companies.

    ‎The Minister of State for Petroleum, Dr. Ibe Kachikwu briefed State House correspondents after making presentation to the National Economic Council (NEC) meeting.

    The Minister sought NEC’s endorsement for the proposal already approved by the Federal Executive Council (FEC), towards changing the funding configuration of Joint Venture (JV) for upstream companies.

    According to him, the current cash call arrears in the oil sector over the last five years up until December 2015 was about $6.8 billion unpaid.

    He said that the government had accumulated unpaid cash call arrears of over $2.5 billion as at 2016.

    The debt, he said, became accumulated due to failure to pay the joint cash calls when oil was selling for $110 -$120 per barrel.

    He said: “There really wasn’t any justification why these monies shouldn’t had been paid in terms of the five years arrears.”

    He said that it had become difficulty to pay the debts as a result of militancy and the drop in oil prices from $110 to $40.

    The implication of this, he said, was government’s inability to meet its cash call obligations.

    “When that happens, you find that your reserve begins to deplete, your ability to maintain production at current level will begin to dissipate and cost of per barrel of production at joint ventures continues to rise because of the very little volumes chasing the cost and at the end of the day the investors’ confidence begins to wane. So a lot of the projects that ought to have happened in this country basically abandoned.”

    He said that ‎sometimes this year, government took on an initiative working with NNPC and the Ministry of Petroleum to try and find a sustainable solution for funding JV cash call.

    He said: “We have been able to find that solution. What we have been able to put together has enabled us to shave over $1.7 billion savings for the government on the $6.8 billion that was previously owed. So we are going to be owing only $5.1 billion as oppose to $6.8 billion dollars.”

    According to him, the $5.1 billion will be paid within five years interest free and the barrels to pay will come from incremental barrels generated by the oil companies not on the current 2.2 million barrels.
    He explained that if for any reason government did not meet those thresholds, it would not be able to pay the $5.1 and the $2.6billion outstanding for this year.

    He added: “We are trying to cover that through three thresholds: one is to continue to do an accelerated cash call payments between October and December hopefully that will bring the figure down to about $1.5 billion and that $1.5 billion was sinking resources from FG either through some of our reserve or Nigeria LNG or a combination of that and alternative funding to try and train staff that should be completed hopefully by December.

    “Beginning next year, if this goes into place the issue of cash call era would have had disappeared. The effect of what this is that investments in excess close to $15 billion are likely to be announced by the oil companies bringing back most of the projects within couple of weeks once this is signed.

    “For the first time the oil industry will take responsibility for arranging their own funding and being able to produce oil and save the fg the whole nightmare of cash calls every year.

    “So this is a very dramatic move in the oil industry we are still going to make presentation to the National Assembly for them to understand this.” He said.

    The new financing regime, he said, would help to save at least $1billion from 2017.

    According to him, government would be looking at reducing the cost of barrel per production from the current 27 dollars per barrel which he said was one of the highest in the world to figure within the threshold of 18 dollars per barrel over the next two years ultimately to about 15 over the next four years.

    He expected the barrel reserve production to increase to about 2.5million by 2019 and potentially to about 3 million barrels by 2021.

  • Security challenges in Niger Delta over soon – Kachikwu

    Security challenges in Niger Delta over soon – Kachikwu

    The Minister of State for Petroleum, Dr Ibe Kachikwu, has assured Nigerians that the security challenges in the Niger Delta will soon be resolved.

    Kachikwu gave the assurance in Abuja on Friday in a statement signed by the ministry’s Director of Press and Public Relations, Mr Idang Alibi.

    The minister, according to the statement, observed that three attacks had taken place in the last two weeks, including Wednesday’s Forcados bombing, in spite of efforts being made to promote peace in the region.

    Kachikwu said he was saddened that in spite of months of intensive personal and collective efforts to engage all stakeholders in the region and the recent successful meeting with President Muhammadu Buhari, these attacks had continued.

    “I condemn these wanton attacks and reiterate that the path to providing lasting solutions to  the Niger Delta challenges remains dialogue,’’  the statement quoted the minister as  saying.

    He appealed to all stakeholders in the region to embrace peace and dialogue and shun acts that further create difficulties for the country as well as impoverish and worsen the ecological problems of the region.

    The minister urged the militants to stop all acts of aggression and give the ongoing dialogue a chance to birth peace in the region.

    He said though distraught, all ministers from the region would continue to work under the president’s mandate to get a complete stakeholder buy-in to the solution programme of the administration.

  • Minister says NNPC wrong on petrol price hike

    Minister says NNPC wrong on petrol price hike

    The Minister of State for Petroleum, Dr Ibe Kachikwu, says the recent N4 increase in the price of petrol in Nigerian National Petroleum Corporation (NNPC) filling stations, is wrong.

    Kachikwu said this after receiving an award at an event organised by the Petroleum Products Pricing Regulatory Agency (PPPRA) in Abuja on Sunday.

    NNPC had been selling fuel at N141 but on Thursday, November 3 increased it by N4 to the government benchmark of N145.

    ”It is obviously humbling and too early in the day to receive an award and to be recognised so soon in some of the things we are trying to do. It is humbling, I thank them very much.

    ”First, I am not aware that the NNPC has increased the price. I need to look into that. It is a bit of surprise for me because there are processes in doing this if they have done that, it means they are doing it wrongly.

    ”Let me find out what the facts are,” he told newsmen.

    Kachikwu said the increase could be as a result of foreign exchange differentiation.

    He said there were areas within government controlled aspects like payments to the Ministry of Transport and the Nigerian Ports Authority that were foreign currency denominated.

    ”Having said that, the reality is that what we did at the point where we did some liberalisation, was to enable the free market float the price.

    ”Obviously, as you look at foreign exchange differentiations and all that, it would impact. The worst thing you could do is to go back to an era where we basically were fixing prices.

    ”What we ought to be doing was watching the prices, making sure that they are not taking advantage of the common man; making sure that the template is respected.

    ”One of the things I think we had hoped to do, which we should still do before we embark on any price increase is to work on those templates.”

    He, however, promised to discuss with industry operators.

    The minister said: ”those who are investing must be able to predict the pricing methodologies, the pricing consequences and the actions, to be able to justify their investments.

    ”At the end of the day, I think PPPRA is the one that has the authority to say it is time the template justified some level of movement.

    ”Otherwise, you have a crisis of individual decisions on pricing,” he said.

    On the issue of insecurity in the Niger Delta, Kachikwu assured that President Muhammad Buhari was committed to finding lasting peace in that region.