Vice-President Yemi Osinbajo says the fuel subsidy removal has
removed a burden of not less than N15.4 billion monthly from the Federal
Government.
Mr. Osinbajo said this in Abuja on Thursday at the 2016 presentation
of scorecard of the Ministry of Petroleum Resources and Agreements
Signing ceremony for Joint Venture Cash Calls (JVC) exit.
Represented by the Attorney-General of the Federation and Minister of
Justice, Abubakar Malami, Mr. Osinbajo said that $15 billion would be
injected into the sector.
”I am pleased to be the special guest of honour at the agreements
signing ceremony for Joint Venture Cash Call exit and the announcement
of $15 billion investments to be done in the sector.
”The oil and gas sector remains very critical to the stability and
growth of our economy as it accounts for about 90 per cent of earnings.
”Amongst others, the downstream sector has been deregulated with the elimination of petroleum subsidy.
”This policy has removed from government, a burden of not less than N15.4 billion monthly,” he said.
The vice-president said that government had taken steps to raise the
domestic refining capacity for petroleum products by repairing the
existing refineries.
”We have also licensed modular refineries and support the development
of private refineries one of which is a 650,000 barrel per day
capacity,” he said.
According to him, one of the refineries is nearing completion, adding
that when completed, it will restore “our pipeline to facilitate crude
and products transportation.”
He said that the Federal Executive Council (FEC) had approved new
measures aimed at eliminating the burden of JVC and easing future
payments in the upstream sector.
Mr Osinbajo commended the World Bank on the global initiative to
secure the environment by ending and commercialising gas flares.
”It will boost the discharge of international obligations by Nigeria
on climate change and contribute to our national power generation
capacity”.
He urged other ministries to come up with score cards of their performances in the last year.
Also speaking, the Minister of State for Petroleum, Ibe Kachikwu,
said that when he took over the leadership of the ministry, oil sector
was losing N1.2 trillion every year and fuel scarcity was common.
”Today, we have a situation where refined petroleum consumption has
gone down from an all-time high of 40 million litres a day to about 28
million litres a day.
”On cash call, the issue was how long the upstream was going to
continue to bleed as investments were drying up and activities grinding
to a halt.
”For the first time in 2017, you are going to see the Ministry
driving an effort with the Department of Petroleum Resources to find
leakage areas, essential to cover the gap in the 2017 budget.
”In the Niger Delta, we have brought the all-time low production of
1.3 million barrels per day (mbpd) to 1.8mbpd but for some minor
incidents it would be closer to 2.1mbpd or 2.2mbpd.
”We set a zero militancy target in 2017 and we want anything that needs to be done should be done,’’ he said.
On Organisation of Petroleum Exporting Countries, OPEC, he said that
he was thrust into the chairmanship of the organisation immediately he
was appointed.
He added that he said he had to convince four countries to serve as
engine rooms of finding solutions and not bringing the national problems
to OPEC.
In her address of welcome, DJamila Shua’ra, said that ”the year
started with refineries producing below capacity, high demand for
petroleum products and insufficient supplies at depots, forex shortages.
”However, President Muhammadu Buhari believed in our team and our collective ability to find solutions.
”Although, it is not Uhuru yet, there are many more rivers to cross. As we speak, aviation fuel remains a challenge.
”We are yet to pick maximum capacity in our refineries and there is
need for more investors to fund massive infrastructural development in
the sector”.
The News Agency of Nigeria reports that awards were presented to an outstanding staff each from subsidiaries of the ministry.