The removal of subsidy from pump price is saving the Federal Government over N1.4trillion that would have been expended on subsidy claims per annum the Minister of state for petroleum resources.-Ibe Kachikwu.
When he visited the Nigerian Content Development and Monitoring Board (NCDMB) in Yenagoa,Bayelsa,he explained that the de-regulation has also awakened the downstream sector and would help the nation become a net exporter of petroleum products in a few years.
''We now have a lot of people who are interested in investing in our products by 60 percents and by the end of 2018 and become a net exporter of petroleum products in 2019'' he said.
Kachikwu in a statement yesterday by the board noted that with the fall in crude oil prices and reduced investment in the sector,the NCDMB must re-strategise and transit from it role of just propagating local content and local participation to one of finding commonality with industry stakeholders to encourage investment.
He also stated that the corporate restructuring initiated in the Nigerian National Petroleum Corporation (NNPC) has reduced the average monthly loss recorded by the corporation from N40billion to N3billion in the recent past,while target remained to achieve profitability before the end of 2016,something that has not been recorded in 20years.
He as well announced plans to carry out infrastructural re-graphing of Nigerian's Petroleum sector,stating plans were to review the ageing pipelines,depots and gas infrastructure and begin the process of replacing them.
On gas flaring,the Minister stated the new thinking way was to move away from penalty based regulations which had failed over the years to a zero tolerance gas flaring regulation with the year 2020 as the new target deadline.
Admitting that the entire petroleum industry requires a strategic intervention,Kachikwu said the challenges are opportunities to transform the sub-sector into income earners for the populace.
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