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No Take Off Date For Oil Subsidy Removal –FEC
The Federal Executive Council (FEC), says the Federal Government has not approved any take-off date for the deregulation of the downstream sector of the petroleum industry and removal of fuel subsidy.
The Minister of Information, Mr Labaran Maku, made the clarification while briefing State House correspondents, after the meeting of the council, presided over by President Goodluck Jonathan, in Abuja on Wednesday.
Maku said that the meeting, the last in 2011, reviewed the conversation on the proposed deregulation and arrived at the conclusion that the president should continue with dialogue on the issue.
He said that the council, however, maintained that given the current budgetary constraints as well as the under-development of the downstream sector, the policy was inevitable.
‘No take-off date has been announced but the truth of the matter is the fact that our country is in a very difficult economic position.
“To continue to run Nigeria with one third of the budget set out to subsidise one product is absolutely a path to greater difficulties in the economy.
“We have been talking about this because we see that every sector we opened up has produced results and this is a fact,” he said.
He said the issue was beyond fuel subsidy but about further growth of the oil industry by encouraging value addition to crude oil and making the nation a hub in petrochemical business.
“About 20 companies that have got licence and have been itching to establish refineries and related industries in Nigeria could not take off because of price control.”
The minister said that following the situation, prospective investors in the industry had begun to move to neighbouring countries, particularly Ghana and Niger Republic.
He said the recently opened refinery in Niger Republic was constructed by a Chinese company, which had earlier expressed an intention to site the refinery in Nigeria.
Maku said the Federal Government had already approved fund for the turn-around maintenance of all existing refineries in the country, noting that it would be carried out by the original builders.
He said they had given 18 months to 24 months period to turn around the refineries for optimal production.
The minister also said that three additional refineries would be built by the Federal Government in Kogi, Lagos and Bayelsa.
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