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Government to save N1.4tr from subsidy yearly, says Kachikwu

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Minister of State for Petroleum, Dr. Ibe Kachikwu .Photo Ladidi Lucy Elukpo.

Minister of State for Petroleum, Dr. Ibe Kachikwu .Photo Ladidi Lucy Elukpo.

The Federal Government would be saving a huge N1.4trillion subsidy annually on the deregulation of the downstream sector of the oil sector, Minister of State for Petroleum Resources, Dr. Ibe Kachikwu has said.

A statement by the Head Public Affairs Officer of the Nigeria Content Development and Monitoring Board (NCDMB), Ejiro Dortie, quoted Kachikwu as saying this in Yenagoa, Bayelsa State while on an official visit to the NCDMB.

Kachikwu explained that the deregulation policy had also re-awakened the downstream sector and would help the nation become a net exporter of petroleum products in a few years.

The minister said, “We now have a lot of people who are interested in investing in our refineries and building more refineries and we will remain committed to the goal which is to reduce importation of petroleum products by 60 per cent by the end of 2018 and become a net exporter of petroleum products by 2019.”

He described NCDMB as a critical agency in the petroleum industry and expressed delight that the Board had the right personnel to deliver on its mandate.

He recalled the Board’s lofty achievements in the last six years of existence, noting that every Nigerian appreciated the good work that it had achieved.

He further pledged to provide the right support and encouragement for the Board to deliver on its targets.

With the fall in crude oil prices and reduced investment in the sector, the Minister charged the NCDMB to re-strategize and transit from its role of just propagating local content and local participation to one of finding commonality with industry stakeholders to encourage investment.

Kachikwu also stated that the corporate restructuring initiated in the Nigerian National Petroleum Corporation (NNPC) has reduced the average monthly loss recorded by the corporation from N40 billion in the recent past to N3 billion while efforts remained on target to achieve profitability before the end of 2016, a feat that had not been recorded in 20years.



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