LCCI charges govt on PPP initiative

Government expected N820 billion earning from crude oil exports highlighted in the 2016 budget may not be realised as Niger Delta militants continued to make good their threats to disrupt the country’s crude oil production and exports.

Oil production had already fallen from a projected 2.2 million barrels a day to 1.4 million barrels before the latest attacks on the oil industry in southern Nigeria, including three within the past week on facilities of the U.S. oil major Chevron.

The Federal Government had pegged the 2016 budget on crude oil benchmark of $38 a barrel and 2.2 million barrels per day production. At 2.2 mbpd, the country is expected to earn N840 billion as oil revenue this year.

But, despite the low crude oil prices, which had already created deficit, recent production and export disruption have made government’s plan look tough to actualise.

Also, ability for the country’s local refineries to meet its petrol supply obligation in the country may also be affected due to the inability of the PPMC to supply crude oil to refineries

Already, exports from four of the nation’s five largest export streams such as Forcados, Qua Iboe, Bonny Light and Brass River have been suspended due to militant attack.

Shell had declared force majeure after militants blew up a pipeline feeding the Forcados export terminal, knocking out at least 250,000bpd as well as on exports of Bonny Light crude after a leak on one of its trunk lines in the Niger Delta.

Chevron, which had also declared force majour, said the damage to the Okan its platform had affected about 35,000 bpd of its net crude production, or about 15 per cent of its output in the country.

ExxonMobil had to declare force majeure on shipments of Qua Iboe, with capacity to handle about 342,000 barrels per day crude oil for export after a drilling platform ran aground and damaged the pipeline it jointly owns with the Nigerian National Petroleum Corporation.

Meanwhile, the Lagos Chamber of Commerce and Industry (LCCI) in its democracy congratulatory message to the President Buhari emphasised the need for the government to accelerate Public Private Partnership programmes to support the government in the provision of infrastructure.

The message signed by the President of the chamber, Chief Nike Akande called for regular public private dialogue to fix macroeconomic and sectoral challenges in the economy.

She added that stepping up efforts at creating an enabling environment for investors would be good for the Nigeria economy.