Oil sector fiscal reforms by the Federal Government have attracted more than $50 billion investments for the country. Remarkably, an investors, that is impressed by the fiscal incentives thrown up by the reforms in the oil sector is bringing in at least $20 billion investment into the nation’s oil industry. The Minister of State for Petroleum (oil), Dr. Heineken Lokpobiri, who said this at a media chat in Abuja on Tuesday, said Nigeria’s target is to push oil production to at least three million barrels per day and increase Nigeria’s oil revenue substantially. The minister boasted that as a result of the solid reforms and the impact they are generating in Nigeria, many of the companies that had exited Nigeria due to adverse operating environment, are now returning to Nigeria for business in the oil industry. Lokpobiri made it clear that Nigeria is desirous of ramping up its oil production to a point that it would become self-sufficient in oil production and a reference point for the Organisation of Oil Exporting Countries, OPEC.
He said one of the ways to raise oil output in the country would be through the unlocking of many oil wells that had been drilled in the Niger Delta but capped for various reasons. The minister said, “We now have peace in the Niger Delta due to the goodwill demonstrated by Mr. President by appointing an Ijaw man as petroleum minister in charge of oil. I can say categorically that this government is determined and committed to improving the lives of all Nigerians through workable policies. “We are confident that we have made the right decisions that will ramp up oil production and ensure sustainable petroleum and production delivery to Nigerians. Our OPEC quota currently stands at around 1.4 million barrels per day but we want to increase our production output so that we can achieve energy sustainability in Nigeria,” the minister said. Lokpobiri made it clear that the current deregulation policy adopted by the Nigerian National Petroleum Company Limited was the only way to attain energy security in Nigeria since the company could no longer be importing products and selling at half the price to Nigerians.
The minister noted, “This issue of deregulation was a major campaign issue by all the presidential candidates. All the presidential candidates agreed that fuel subsidy must be removed and by the time this government came into office, there was no provision for subsidy. “As things stand today, the NNPC cannot continue to be importing petroleum products and selling at subsidised rate and owing heavy debts all in a bid to make petrol available to Nigerians. But the government is committed to making life affordable for Nigerians,” the minister stated. He said in a bold step to make products readily available and affordable, the government is committed to support local refineries, including Dangote to succeed and by working with stakeholders to find a lasting solution to the challenges in the industry. The minister said that the government would not lose any money or business by selling crude to Dangote Refinery and other small refiners in Nigeria since they are all expected to pay for crude at the prevailing international rate but in the local currency, Naira. We are not losing any business by giving Dangote Refinery because he is paying at prevailing international rate in Naira. Reminded that the current subsidy removal by the government had already triggered untold hardship in the land, the minister quickly retorted that the President was committed to removing any situation capable of causing hardship for Nigerians.
