The Minister of State Petroleum (Oil), Senator Heineken Lokpobiri, has cleared the air on the issue of subsidy in the oil sector saying it is a foregone conclusion.
The minister stated this at the ministerial sectoral briefing which was held at the press centre, Radio House, Abuja as part of the activities marking the one-year anniversary of President Bola Ahmed Tinubu’s government.
Tribune Online recall that President Tinubu on his swearing-in at the Eagle Square Abuja on May 29, 2023, had announced an end to fuel subsidy in Nigeria which led to petrol selling at N617 from N175 which the government of former President Muhammadu Buhari left.
But Lokpobiri at the briefing said although the fuel subsidy is gone, he said government has been subsidising food, fertiliser and the fuel supply chain to ameliorate the sufferings of Nigerians. He, however, emphasised that the government is no longer paying subsidy on oil.
He said government is working on how to increase oil production and is in talk with some companies to start oil drilling in some parts of Nigeria which has not happened in the last 12 years. He added that the government is taking all the necessary steps to halt fuel importation through drilling thereby supplying oil to all the refineries in the country.
Speaking on the relative peace in the Niger Delta, the minister it was achieved as a result of collaboration among the security agencies, the Ministry and stakeholders in the oil sector. He said peace in the Niger Delta region is necessary for stability in the oil industry and to shore up production.
He also added that the government is working assiduously to make sure that oil wells which have remained redundant for years are brought back to life to meet up with oil production and increase the number of barrels that Nigeria can produce per day.
“On the issue of whether there is subsidy or not, all of us in Nigeria know that from the very first day the President took oath of office, he said subsidy is gone. Like I confirmed to you today, the subsidy is gone. But the point must be made that all over the world, government finds a way to subsidise maybe not fuel, but agro products. Are we not subsidising food? We are finding a way to subsidise fuel supply, finding a way to subsidise fertiliser supply. There is some way any responsible government will not find one way or another to be able to ameliorate the sufferings of her people but officially, there is no subsidy (on oil). The government is not paying subsidy. Please, I want that officially cleared, there is no (oil) subsidy in the country as at today.
“Whether Dangote is importing crude or not, and that is why we are talking about the increase in production, that is why we are bringing the service company to come back and start drilling. That is why I’m also telling you that yesterday a company told me of a drilling program of over 100 wells.
“Peace in the Niger Delta is a result of collaboration between the security agencies, those of us in the Ministry and other stakeholders, the industry players. All of us are in accord, working together to ensure that we sustain the peace for the oil and gas industry to operate in the Niger Delta region. There are thousands of oil wells. I cannot stand here and tell you how many oil wells we have. But the problem we have is that the bulk of our oil wells are not producing. And what we are doing is to ensure that we bring them back to production so that we can increase the number of barrels that we can produce per day.
“The only way we can increase production is to continue drilling. And in the past 12 years that didn’t happen. But it has started happening in significant numbers under this administration. I can assure you that there will be no basis for anybody to import crude because we will be able to supply the fixed stock for all the refineries that are located in Nigeria.”
The minister also dismissed any issue of fuel scarcity. He said long queues being seen in some of Abuja and other states are not because of any impending fuel scarcity but because motorists prefer buying at NNPC filling stations which offer cheaper prices than what independent marketers are selling.
“If you see queues in fuel filling stations, that doesn’t mean that there is any scarcity. Fuel is cheaper in the NNPC filling stations. So, when you are driving and you see queues in some filling stations, it’s not that there is any fuel scarcity, but the price between what PMS is sold in the NNPC filling stations and the one owned by IPMAN members is made in the neighbourhood of 60 to N80 per litre. And to some people, they prefer to go and queue under the NNPC filling stations to buy at a cheaper rate, but that doesn’t mean there is fuel scarcity.
“This is one government that has been able to ensure that there is sustainability in the supply chain, particularly for PMS. You could recall that before now, it was a perennial problem every year you will see during the festive period in December there will always be queues. But journalists, I want you to go and investigate, last year there were no queues in this country for the first time. That happened not by accident but it was because of deliberate efforts made by this government to ensure that there is product affordability and availability.”
He said the government has been able to tackle the factors militating against the oil sector which has restored investor confidence and created an enabling environment for business in the oil and gas sector to thrive.
“Today, I am pleased to announce that our efforts have rekindled investor confidence in the sector. Notable examples include investments committed to the tune of $5bn and $10bn respectively in deepwater offshore assets and $1.6bn investment commitment in oil and gas asset acquisition,” Lokpobiri said.
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