By Musa Adamu
Abuja
Minister of state for Petroleum Resources and Group Managing Director of the Nigerian National Petroleum Corporation, (NNPC) Dr. Emmanuel Ibe Kachikwu, said the novel price modulation mechanism currently in place would ensure that the federal government records zero expenses on fuel subsidy in 2016.
Delivering the 45th Convocation lecture of the University of Nigerian Nsukka(UNN) Dr. Kachikwu noted that the zero fuel subsidy regime was already in place and would be sustained based on the prevailing modified pricing template for petroleum products which had eliminated extraneous cost elements.
He said: “Without necessarily removing subsidy the government will spend zero amounts in subsidy in 2016. This may sound unbelievable to some people but that is part of the change agenda of the present administration of President Muhammadu Buhari.“
He noted that large chunks of vandalised pipelines were being recovered which would supply more crude to the refineries .
He despite the difficulties of yesteryears the oil and gas industry in Nigeria was primed for greater achievements in the months and years ahead as a recent of landmark reforms being engendered and activated by the present administration.
He outlined the central objective of the ongoing oil and gas reform agenda to include increasing revenue for the country through sales of petroleum and petroleum products and taxes on profitable enterprises.
He also listed maximisation of value addition on the crude oil and gas to establish linkages with other sectors through local processing and establishment of gas based industries thereby stimulating economic growth and development as well as providing employment opportunities for Nigerians.
“Significant improvement in governance macro-economic and fiscal policies are key to harnessing oil and gas resources for the sustainable development of Nigeria through enshrining transparency and accountability, empowering good governance and transparency in expenditure and revenue management.”
He also noted that the ongoing reform was designed to create competitive framework for public private partnerships anchored on durable financial investments.
