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Prospect dims further for 2016 budget funding

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The Minister of State for Pretroleum Resources Emmanuel Ibe Kachikwu PHOTO: TWITTER/NNPC

The Minister of State for Pretroleum Resources Emmanuel Ibe Kachikwu PHOTO: TWITTER/NNPC

• Government down by 1.1 million barrels per day
• Suffers 1,600 pipelines attacks in six months
• Unveils strategy for improved power supply

Nigeria will require additional 1.1 million barrels per day (bpd) between now and December to meet its 2016 budget projections of 2.2 million barrels daily, said Minister of State for Petroleum Resources, Ibe Kachikwu.

The 2016 N6.1trillion national budget, which is expected to be funded mainly from oil revenues, is already pegged on a deficit of N2.2trillion, leaving government struggling for a way out, a situation further compounded by crash in oil prices and vandalisation of pipelines.

Kachikwu, who made the disclosure, yesterday, at the yearly conference of the National Association of Energy Correspondents in Lagos, said due to vandalism, the country was experiencing a shortfall of 700,000bpd, representing 29 per cent decline in output.

The revelation comes as the Minister of Power, Works and Housing, Babatunde Raji Fashola, said incessant attacks on pipelines have forced the Federal Government to diversify the nation’s power output, with renewable alternative as bedrock.

He said government is aggressively pursuing the utilisation of hydro and other sources of energy, to tackle epileptic supply.

According to Kachikwu, about 850 million metric standard cubic feet/day (mmscfd) of gas production was being shut in due to pipeline vandalism, with 1,600 incidents of pipelines attacks recorded between January and June this year. These, he said, caused a loss of 560,000 barrels to refineries and 109 million litres of petroleum products.

He added that Nigeria recorded over 3,000 incidents of pipeline vandalism in 2015, resulting in the loss of 643 million litres of petroleum products, valued at N51.28 billion.


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4 Comments
  • Basil Ogbanufe

    Solution? Outright privatization and liberalization of the economy through the NSE (Nigeria Stock Exchange) by way of IPO (Initial Public Offer). Federal government should hands off the economy. The federal government cannot be regulator and operator at the same time. This is corruption.

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  • Osanebi Osakuni

    Further stiff the quest for restructuring Nigeria and wail louder. The Daura illiterate is chasing shadows by diverting the scarce resources available to oil explorations in the barren NE. Blind leader!

  • Stanley Chibuzo

    Somebody should tell APC Federal Govt. to stop these blame-game leadership styled and get down to work and redeem their campaign promises; none of which is close to fulfillment. They claimed in their 2015 election campaign promise that they know, and have, solution to all socioeconomic and political problems in Nigeria: from epileptic power supply, high pump-prices of petroleum resources, food insecurity, unemployment, inflation, very weak currency and high exchange rate of Naira/USD, nepotism and marginalization of some ethnic nationalities or section(s) of the country, insecurity in the North-East and Niger Delta, etc. As we speak, most of these, and other, problems have shown any sign(s) of abetting: Instead, the situation appear to have worsened as the level of poverty hunger in the country have worsened. Nigerians need solution and not complain, blame-game and propaganda.