With reoccurring fuel crisis in Nigeria, the federal government has announced that it will build three refineries in Kaduna, Port Harcourt and Warri to end fuel crisis permanently.
The minister of state for petroleum resources, Dr Ibe Kachikwu made this known when he spoke at a town hall meeting organised by the Federal Ministry of Information in Kaduna. He said when completed as planned by 2018, Nigeria will, for the first time, start exporting refined petroleum products.
He also unveiled the government’s plan to provide every household with free gas cylinder before the end of next year, to stop dependence on kerosene for cooking.
The minister said the Federal Government would in the next few days unveil a new policy to address fuel subsidy.
“We are coming up with a policy in the next few days that will allow us develop the price modulation that allows us swing our price along with international pricing.
“We are now transiting into fuel modulating pricing because we do not have sufficient foreign exchange to continue fuel importation we have been doing.
“Therefore, NNPC has to produce about 100 per cent of the product, that is the cause of the scarcity.
“The Federal Government has struggled to offset about N600 billion subsidy balance when the administration came into power.”
Speaking on oil exploration in Northern Nigeria, the minister said the government had invited investors to explore for oil in the region.
“I am one of those who believe that with modern technology, oil and gas exist in every part of Nigeria. We are putting a lot of investment and we are inviting people to invest money. We have set up a department which is doing three things for the North.
“First, we are going bullishly and trying to find oil and it is in our own interest, especially given the problems we find with pipelines.
“We are focusing on clean energy, solar; we should be able to provide sufficient solar energy in the northern part of this country.”
According to Kachikwu, “the refineries to be built will take advantage of the shared facilities. And if we do this, by 2018, if all our refineries are working, we will drop importation by 60 per cent. And by 2019, if the four located refineries begin to work and I’m sure they will, we will actually begin to export petroleum product for the first time in this country.”
Meanwhile, Nigeria has been secretly exchanging its crude oil for refined petroleum products to the detriment of revenue accruing from sale of crude oil.
