Mr, Ibe Kachiku, Minister of state for petroleum Resources said until the downstream sector of the Nigerian petroleum industry is liberalised and subsidy on petroleum product removed, Nigeria would continue to be greeted with unstable fuel supply challenge.
This came to limelight as President Muhammadu Buhari revealed that the petroleum and gas industry will remain critical in the overall development of the country, and for a long period of time to come.
During the presentation of the key achievement and award to staff of the ministry in three years in Abuja, for year 2016 to 2018, the minister disclosed this. He stressed that to achieve fuel supply challenges; the country is required to identify a way of meeting steady supply of the product to populace at the same time remove the bottleneck to allow sector a free growth.
The Minister added, “In the midstream and downstream sectors, we have struggled” he would be happy to see a day where fuel scarcity will be a history in Nigeria. However, to actualise that, there are certain realities. Liberalization of the sector remains paramount to solving the problem. As long as the govt. Continue to subsidise petroleum product, the populace would continue to struggle.
He added “We are not going to trade our way out of the fuel crisis by bringing sufficiency, by expanding reserves, by extravagant costs which cost the country a lot of money; that is not the solution. The solution is to get our refineries working.”
Kachiku, acknowledged that investment are nothing to write home about in petroleum sector, stressing that over the years, refineries turn around maintenance, TAM, has been greeted with faulty models which have negatively impacted on their effectiveness.
He reiterated that, focus on the refineries revamp, not calling for his resignation. He frowned at those calling for his head over his statement on refineries, noting that energy should be directed on making the refineries work again on the on the pace set by the present administration in area of refinery revamp.
Until investors are wooed and they work, the problem will continue to be nightmare; policies are the mechanics of that process and which he is working hard to archive that, the minister stated.
