Oil & Gas
PRESIDENT Bola Tinubu on Tuesday, February 27, revealed that his removal of the Premium Motor Spirit (PMS) has encouraged private sector participation in the energy industry.
Declaring the 7th Nigerian International Energy Summit (NIES) open in Abuja, the president added that the stoppage has the potential of attracting more local and international investors.
The theme of the summit is “Navigating the New Energy World Order: Security, Transition and Finance.”
Tinubu was represented by the Minister of Information and National Orientation, Alhaji Mohammed Idris Malagi.
According to him, through the phasing out of subsidy, the federal government has created a more transparent and accountable sector.
He noted that the funds that were formerly spent on subsidy is now channeled into development and upgrading of the nation’s energy and other social infrastructure.
Tinubu said: “By removing the subsidy, we are creating a more transparent and accountable energy sector.
“The funds that were previously allocated to subsidizing petroleum products are now redirected towards developing and upgrading our energy and other social infrastructure.
“Furthermore, the removal of the subsidy has encouraged further private sector participation in the energy industry with potential of attracting more local and international investors, fostering innovation and competition that will drive down costs and improve the overall efficiency of our energy sector.”
The president, who admitted that the removal of subsidy will impact negatively on the low income earners, stressed that in parallel with the subsidy removal, his administration is committed to implementing social intervention programs to mitigate the short-term effects on vulnerable populations.
These programs, according to him, will ensure that the burden of the subsidy removal is shared equitably and that the most vulnerable are protected.
He added: “The decision to remove the petroleum subsidy is not an easy one, but it is a necessary one for the long-term energy security and economic prosperity of our beloved nation. I call upon all stakeholders, including industry experts, policymakers, and the general public, to engage in constructive dialogue and collaboration as we navigate these challenging but transformative times. Together, we can build a resilient and sustainable energy future for Nigeria.”
He charged the stakeholders in the summit to leverage innovation and collaboration to ensure a smooth and just transition that will leave no one behind.
He said finance plays a pivotal role in driving the energy agenda. Adequate funding, said Tinubu, is crucial to support the development and deployment of cutting-edge technologies, infrastructure, and projects that will shape our energy future.
He insisted that “As a nation, we must explore innovative financing models, engage with the private sector, and attract investments that will propel us towards a more resilient and diversified energy sector.”
The Nigerian National Petroleum Company Limited (NNPCL), Group Chief Executive Officer, Malam Mele Kyari revealed that the firm has begun the tunnelling of River Niger for OB3.
He said NNPCL is committed to developing the deepwaters going forward.
He said the company has substantial access to capital today. Kyrie also noted that there was shortage of investment support and that is the reason NNPCL is support the African Energy Bank with capital.
He said there is the current challenge of the security of assets but Tinubu is working hard to tackle that to earn investors confidence to deliver production to the market.
Meanwhile, the Minister of State Petroleum Resources (Oil), Senator Heineken Lokpobiri said Nigeria that has so many idle wells, that it needs to ramp up production.
The minister called for the increase of upstream production to get the right quantity that will service local and international obligations.
He said: “Dangote Refinery needs about 650,000 barrels a day. We rehabilitating our government refineries need about 440,000 barrels per day.
“We have a couple of modular refineries that need oil. So on the whole we need to ramp up production so that we will be able to ramp up our domestic needs, guarantee energy security locally.”
The minister said the Port Harcourt Refinery has started operation.
According to him, Nigeria has no business importing fuel.
Lokpobiri said now that the domestic refineries are being rehabilitated that will come into full operation by the end of this year.
He said: “Some of them have started, Port Harcourt Refinery has start. Warri is about to be completed between now and the next two months. Kaduna will come up. At the end of this summit we should be able to come up with finance because finance comes with investment.”
He insisted that Nigeria is not stopping the exploration of fossil fuel, noting that the country will develop it in a sustainable manner.
He said the international oil companies are not leaving the country but they were only leaving for the offshore deepwater.
He noted that the western world clamouring for energy transition was still developing hydrocarbon.
THE NATION
27th February, 2024.
C.E.
Tags: President Bola Tinubu
