We will stop importing fuel by 2019 - Ibe Kachikwu

We will stop importing fuel by 2019 - Ibe Kachikwu

- Nigeria will stop importing fuel in 2019 according to the minister of state for petroleum resources

- Mr Ibe Kachikwu said in 2 years the FG had made rapid improvements in the petroleum industry

Ibe Kachikwu
Ibe Kachikwu

Mr Ibe Kachikwu, the minister of state for petroleum resources, said on Tuesday, February 7 that Nigeria will stop importing refined petroleum products by 2019, in Abuja.

While speaking at a public hearing on the review of petroleum pricing template for Premium Motor Spirit (PMS) organised by the House of Representatives, Mr Kachikwu said that within two years, the FG had successfully revived refineries that were not functioning.

This huge improvement in the industry had contributed about eight million out of over 20 million litres of petrol consumed in the country daily.

READ ALSO: Global oil output falls by 1.07 million bpd in January

Kachikwu explained that the FG has also initiated a model which attracted foreign investors to partner with the Nigeria National Petroleum Corporation (NNPC) to repair the country’s refineries within the two years period.

He explained: “This has consistently served as a target for this government so that by December 2018, NNPC must be able to deliver on some of the terms given them, one of which is to reduce petroleum importation by 60 per cent.

“By 2019, we should be able to exist completely on the importation of petroleum products in this country. “Cognisant of the fact that Dangote is building one refinery, we expect to have an excess situation."

Speaking on the exporting of crude oil, the minister said Nigeria must also have the capacity to stop exporting crude oil.

He likened selling crude oil to selling agricultural produce in an unprocessed manner, and this he said was unacceptable. He said:

“The world is leaving that, every member of OPEC is leaving that because of the prizing, volume and market challenges is now shifting from selling crude to selling refined petroleum products.

“That is what this country must do and there is a template we are working on. He further said that the ministry intended to create an enabling environment that would promote local refining of crude oil.

“The issue is not giving licences to illegality, the issue is how do we ensure that we create an investment environment that pulls individuals from illegal creek activities to legal business activities.

“We are looking at modular refineries, about 60 licences were given out just before this government came in and none of that was utilised because it requires a lot of money, land and crude security.

READ ALSO: Petrol now sells for N142 per litre in depots

“But now we are going out to identify refineries, get individuals who can build refineries on the same platforms where our refineries are and identify some key specific modular refineries backed up by foreign investments working with state governments.

“Hopefully this will address the restiveness you see in the Niger Delta."

Speaking on reducing the fuel pump price, Kachikwu said there was no padding in the petroleum pricing template for PMS currently sold at N145 per litre.

Meanwhile, an end seems to have come to the economic recession plaguing Nigeria since almost two years as the country sees oil hitting mid-$60s in coming months as OPEC bites.

Bloomberg reports that the minister of state for Petroleum, Emmanuel Kachikwu, said that crude oil prices, hovering around $55 a barrel since early December, will climb by about $10 in the coming months as OPEC-led measures to curb a glut take hold.

Source: Legit.ng

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