THE NEWSGHOST, NIGERIA – Following a memo presented by Minister of State, Petroleum Resources, Ibe Kachikwu, to the Federal Executive Council (FEC), the federal government (FG) of Nigeria has approved a new oil policy, report says.
After a FEC meeting last week Wednesday, Kachikwu told journalists at the State House that the ministry had already started implementing some of the new policy.
He explained that the last oil policy was set in 2007, ten years ago, and the dynamics of the oil industry has changed dramatically.
Kachikwu said, ‘We are working assiduously to exit the importation of fuel in 2019 and we also captured the cash calls changes we have done which enables the sector to fund itself through incremental volumes.’
He mentioned that the new policy captured the reorganisation in the Nigeria National Petroleum Corporation (NNPC) for efficiency and to enable accountability.
The minister also said, ‘It captured the issues in the Niger Delta and what we needed to do as a government, to focus on stability and consistency in the sector.’
He described the new policy as a 100-page document that deals with all the spectrum in the industry.
‘Apart from the fact of fluidity in pricing and uncertainty in terms of the price regime in crude, we are pushing for a refining processing environment and moving away from exporting as it were to refining petroleum product, that’s one change you will see,’ he explained.
‘Secondly how we sell our crude is going to be looked at, there is a lot of geographical market we need to look at in the long term, contracting and sales as opposed to systemic contracting that we have been doing,’ he added.
‘Those are the fundamentals, it’s a document if well executed will fundamentally take the change process that we began in 2015 to its logical conclusion hopefully in the next couple of years,’ he assured.
The new oil policy was approved at the FEC meeting chaired by Acting President Yemi Osinbajo last week Wednesday, after he returned from his visit to Nigeria’s ailing president Muhammadu Buhari in London.