In spite of query by the National Assembly on the rationale
behind subsidizing the petroleum products for domestic use, Federal
Government on Thursday admitted payment of N1.3 trillion annually
on import of the products.
Emmanuel Ibeh Kachikwu, the Minister of State for Petroleum
Resources, gave the hint while fielding questions from newsmen on:
“Workshop on Harmonisation of Liquefied Petroleum Gas (LPG),
Regulatory Requirements.”
The Minister of State said that the federal government’s current
annual payment of ‘under recovery’ on Petroleum import stands at
N1.3 trillion annually.
Although the National Assembly, has questioned the rationale
behind the ‘under recovery’ payment while describing it as subsidy
for petroleum sector, Kachikwu said the under payment is done by
the Nigeria National Petroleum Corporation, NNPC, to ensure price
stability in the market space, since the Corporation is the sole
importer of the product currently.
Kachikwu said that federal government is discussing with the
Organised Private Sector to ensure enough infrastructure to improve
gas availability.
He said that as a means of addressing infrastructure gap, the
government will soon launch an infrastructure rebirth map to
attract more investments into both the upstream and down stream
sector.
The Minister said, “Government is hoping to launch an
infrastructure rebirth map, which would open up Tariff in terms of
policy that will enable people go into investing into the critical
infrastructure that we need to open up the upstream and down stream
sector.
“The infrastructure map should be able to open infrastructure
in transportation of the petroleum products whether through the
pipeline beyond trucks and making availability of gas all over the
country.”
Kachikwu insisted that there are lots of gas everywhere and
there are lots of petroleum products everywhere, which are trapped
because of shortage of infrastructure, as he noted that Nigeria
needed the right kind of infrastructure to still one up the
investment space in both the upstream and down stream sector.
In his remarks at the event, Nosa, Ogieva-Okunbor, the President
of Nigerian Association of LPG Marketers, said the Nigerian
currently consumes 700,000 metric tonnes of gas annually, while if
the infrastructure is in place, Nigeria could consume 5 million
metric tonnes of gas annually.
Nosa said the private sectors are keying in as the Nigerian Gas
Policy has also assisted them and has also opened the sector for
investments.
He said, “We have more jetty that LPG can come in to discharge
contents in strategic areas. Hence, scarcity of commodity is
almost a thing of the past, as the government policies have
allowed LPG industries to be further deepened to ensure
availability of LPG.”
In spite of query by the National Assembly on the rationale
behind subsidizing the petroleum products for domestic use, Federal
Government on Thursday admitted payment of N1.3 trillion annually
on import of the products.
Emmanuel Ibeh Kachikwu, the Minister of State for Petroleum
Resources, gave the hint while fielding questions from newsmen on:
“Workshop on Harmonisation of Liquefied Petroleum Gas (LPG),
Regulatory Requirements.”
The Minister of State said that the federal government’s current
annual payment of ‘under recovery’ on Petroleum import stands at
N1.3 trillion annually.
Although the National Assembly, has questioned the rationale
behind the ‘under recovery’ payment while describing it as subsidy
for petroleum sector, Kachikwu said the under payment is done by
the Nigeria National Petroleum Corporation, NNPC, to ensure price
stability in the market space, since the Corporation is the sole
importer of the product currently.
Kachikwu said that federal government is discussing with the
Organised Private Sector to ensure enough infrastructure to improve
gas availability.
He said that as a means of addressing infrastructure gap, the
government will soon launch an infrastructure rebirth map to
attract more investments into both the upstream and down stream
sector.
The Minister said, “Government is hoping to launch an
infrastructure rebirth map, which would open up Tariff in terms of
policy that will enable people go into investing into the critical
infrastructure that we need to open up the upstream and down stream
sector.
“The infrastructure map should be able to open infrastructure
in transportation of the petroleum products whether through the
pipeline beyond trucks and making availability of gas all over the
country.”
Kachikwu insisted that there are lots of gas everywhere and
there are lots of petroleum products everywhere, which are trapped
because of shortage of infrastructure, as he noted that Nigeria
needed the right kind of infrastructure to still one up the
investment space in both the upstream and down stream sector.
In his remarks at the event, Nosa, Ogieva-Okunbor, the President
of Nigerian Association of LPG Marketers, said the Nigerian
currently consumes 700,000 metric tonnes of gas annually, while if
the infrastructure is in place, Nigeria could consume 5 million
metric tonnes of gas annually.
Nosa said the private sectors are keying in as the Nigerian Gas
Policy has also assisted them and has also opened the sector for
investments.
He said, “We have more jetty that LPG can come in to discharge
contents in strategic areas. Hence, scarcity of commodity is
almost a thing of the past, as the government policies have
allowed LPG industries to be further deepened to ensure
availability of LPG.”
Read more https://nairalaw.com/fg-spends-n1-3trn-annually-to-subsidize-petroleum-products/