Emmanuel Ibe Kachikwu, minister
of state for petroleum resources, says the country will continue to struggle
with fuel scarcity if it continues to subsidise petroleum products.
The junior minister made this
statement on Thursday at a programme organised by the Nigerian National
Petroleum Corporation (NNPC) to celebrate its achievements in three years and
honour its staff.
“In the midstream and downstream
sector, we have struggled. I’d love to see a day when there will be no fuel
scarcity in this country but for that to happen, there are certain realities
whether we want to accept the facts or not,” he said.
“The liberalisation of the sector
is going to be a panacea for being able to solve this. As long as we continue
to subsidise products, create very market unfriendly type taxes, we are going
to continue to struggle.
“So we need to find a way that we
meet the needs to provide products sufficiently for the populace and at the
same time free the sector to grow.”
Speaking further, Kachikwu said
the NNPC is already deliberating on the terms for the refurbishment of the four
refineries.
“Investments are lacking in this
sector, we’ve been working on trying to rebuild the four refineries. We got
approval from the president in January 2016. NNPC has struggled in terms of
finding the financials. Financials have finally been found but to find the
terms have been difficult.
“We are having a meeting on this
tomorrow and I am hoping that by end of this year, end of first quarter next
year, we would have completed the commercial aspect of this financial
undertaking and finally, we’ll be able to allow private sector collaborate with
NNPC and repair these refineries and bring back 450,000 barrel capacity
refinery back into shape. That is going to be the solution, one of the first
solution to solving the fuel crisis.”
On Sunday, the Depots and
Petroleum Products Marketers Association of Nigeria (DAPPMAN) had threatened to
suspend operations if outstanding subsidy claims were not paid.
The shutdown directive was
suspended on Monday when marketers agreed to give the federal government a
five-day grace to pay the first tranche.
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