Kachikwu explains how 2019 end to petroleum import is feasible

Nigeria’s minister of state for oil‎ resources, Emmanuel Ibe Kachikwu, has expressed optimism that Federal Government’s effort to address fuel import by 2019 is feasible, explaining that there are mechanisms already in place to ensure the success of achieving the set target.
Kachikwu, who expressed worry that close to 30 percent of FX allocation given by the Central Bank of Nigeria (CBN) goes to the petroleum sector import, regrets that such practice is a huge foreign exchange drain on the country, saying the government is working hard to ensure local refineries perform optimally to ensure FX conservation.
‎”Our target is to cease importation of petroleum products by 2019 and get advantages in terms of forex conservations, job creation, stability of the market production, and even give ourselves some level of credibility as an OPEC member country, who has been able to transit from importation to local processing,” Kachikwu states in his June monthly podcast monitored by BusinessDay.
‎Nevertheless, Nigeria has a national average refining output of 6 million litres daily versus daily consumption of 35 million litres of petrol, which translates approximately to 20 metric tons of importation of petroleum products valued at about N3.35 trillion a year (January 2016 to December 2016).
This trend, market watchers, say is not sustainable, giving the volatility of the global oil prices, and its after effects on Nigeria’s economy.
The minister however notes that the NNPC has been serving as a last resort importer amid market volatility, regretting that there is a huge amount of job losses that arise due largely to lack of 100 percent refinery utilisation.
On strategic efforts by the government to address importation of petroleum products, he explains that the Federal Government is committing efforts in trying to seek financing in repairing the refineries for optimal performance.
“We would first try to seek financing in repairing these refineries. What we are doing is financing and not concession nor sale of the refineries,” he says.
Kachiku says, “It is absolutely important to get our refineries upgraded, enhanced, get the Greenfield refinery builders supported, and potentially get individuals who show collocation refineries interest in Greenfield basis, we would give them all the support they need.”
He further states that the Federal Government we work together with those that have licences for modular refineries, ascertain their problems, and ensure they are up and running.
He reinstates further the commitment to work with the National Assembly and other relevant agencies in ensuring timely achievement of proposed targets in a bid to deliver on 2019 deadline.

 
HARRISON EDEH, ABUJA