The Minister of State for Petroleum Resources, Dr Ibe Kachikwu, on Thursday said there might be no money to fund the 2016 budget going by the spate of pipeline vandalism in the Niger Delta region.
Dr. Kachikwu, who said this at the 2016 Annual Conference of National Association of Energy Correspondents in Lagos, warned that militancy in the Niger Delta has destabilised the country’s oil industry, adding that Nigeria needs to increase its production by 1.1 million barrels per day to meet its target.
Dr Kachikwu revealed that has recorded 1,600 cases of pipeline vandalism since January, and over 3, 000 pipeline vandalism cases from 2010 to 2015.
Dr. Kachikwu urged the militants to stop and set aside every aggression and come to the altar of engagements, insisting that the solution to the Niger Delta problem is not militancy but extensive dialogue.
He further noted that domestic gas supply to power has declined by 60%, maintaining that refineries are still averaging 50% – 60% capacity.
He called on the need to ramp up production, affirming that “we must do whatever is required as a people to proffer solutions to our collective challenges as a nation”.
He stated that his dream is to ensure that by 2018 “we exit importation of petroleum products and by 2019, begin exportation. He also stated that the China Road-trip was focused on attracting investments to the sector.
Dr Kachikwu maintained that a review of the regulations affecting the oil and gas sector in Nigeria in the past 30 years is in progress, adding that polices such as National Gas Policy, National Oil Policy, Fiscal Policy and National Downstream Policy, will also be developed.
He further maintained that the liberalization of the downstream sector has led to the reduction of truck-out from 1,500 about 10 months ago to 850, presently, daily consumption of ±45 million litres (10 months ago) to ±38 million litres and drastic reduction of petroleum products massive diversion to West African countries.
He, however, assured Nigerians that government is stepping up efforts to make robust policies that would finalise and gazette a comprehensive gas policy, unlock gas potential and ensure effective development of Nigeria’s gas market.
