FG promises $100 billion to boost oil, gas investment
Vice President Yemi Osinbajo has said that Nigeria will address challenges in the oil and gas sector to boost investor’s confidence with plans to add over $100 billion investments in the next five years.
Osinbajo, who restated the need for intra-Africa trade, especially in the oil and gas sector, at the closing session of the Nigeria International Petroleum Summit yesterday, said the Petroleum Industry Bill (PIB) would be passed speedily. He said: “I will like to assure our oil and gas operators of the Federal Government’s commitment to creating the enabling environment for the industry to achieve it destiny in Africa.
“As you are aware in our determination to introduce legislations that will remove all challenges to the efficient conduct of oil and gas businesses, we split the PIB into three, some of which have been approved already by the Executive.
The Vice President said the increasing number of African countries joining the league of oil and gas producing states calls for greater co-operation among the old and the new in the industry.
According to him, it is clear that Africa must increasingly look within for solutions to resolve the challenges that hinder the development of the sector.He noted that the success of the maiden edition of the summit has created leeway for Africa to play major role in the oil and gas sector and secure a place in the global map.
Besides, Minister of State for Petroleum Resources, Ibe Kachikwu, who said recent investment in the sector is about $40 billion, stated that the country would be able to boost investment in the nation’s oil and gas sector to record $100 billion in the next five years.
“The $40 billion investment is not enough, we need to target $100 billion investment to revive the sector for maximum contribution,” he said.Kachikwu, who said key issues, especially regulation, transparency, cost, incentives, policies and militancy must be addressed urgently, stressed that the investment would be led by gas.
“The investment will be target at gas, gas infrastructure, replacement of existing dilapidated pipelines, which will be carried out by private sector investment,” he added.
He noted that Africa and African market was key and ripe for utilisation in terms of transfer of technology and market exports, adding that long-term process to holistically address lingering issues in the Niger Delta were needed.
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