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Kachikwu Canvasses Fuel Subsidy Removal …As FG Slams $1.1bn Suit Against Shell, Eni

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Minister of State for Petroleum Resources, Mr. Ibe Kachikwu, yesterday, stated that until the downstream sector of the Nigerian petroleum industry is liberalised and subsidy of petroleum products removed, the country would continue to struggle and face challenges in terms of ensuring stable fuel supply.
Speaking in Abuja, at the presentation of the key achievements of the Ministry of Petroleum Resources in three years, 2016 to 2018 and award to staff of the ministry, Kachikwu argued that to address fuel supply challenges, the country needed to find a way to satisfy the need to provide products sufficiently for the populace and at the same time to be able to free the sector for growth.
be able to free the sector for growth. He said, “In the midstream and downstream sectors, we have struggled. I would love to see a day when there would be no fuel scarcity in this country. But for that to happen, there are certain realities. The liberalization of the sector is going to be a panacea to being able to solve this. As long as we continue to subsidise products, create market-unfriendly type practices, we would continue to struggle.
“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.”
Kachikwu noted that investments are lacking in the petroleum sector, adding that over the years, refineries’ turn around maintenance, TAM, had been fraught with faulty models which had hampered the effectiveness of the refineries.
Meanwhile, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, says the Federal Government is targeting to grow the crude oil production to 2.2 million barrels per day (mbpd) by the end of January, 2019.
Kachikwu made the disclosure during the presentation of the ministry’s achievements in three years (2016 to 2018) and awards to staff in Abuja yesterday.
He said that by the end of 2019, crude oil output would have hit 2.5 million barrels based on the coming on stream of the Egina field and the recently approved 30 field works which had the capability of increasing Nigeria’s output by 500,000 barrels per day.
“Crude oil production had been sustained at a fairly large level. We started at 800,000 barrels and we have grown it to about two million barrels.
“We should be doing more but for the cyclical difficulties in terms of occasional pipeline disruptions and occasional closure for purpose of maintenance.
“We are averaging about two million barrels and about 300,000 of that are roughly condensates.
“Really, by the end of January 2019, we should have grown production to about 2.2 million barrels which have been our signpost.
“In addition to that, there are 30 other field works that have been approved by the Department of Petroleum Resources, which have the capacity of adding about 500,000 barrels per day production,’’ he said
According to Kachikwu, by the end of 2019, the country will be averaging 2.5 million barrels production, which will be the first time it will be done in the country.
The minister said that the oil reserves had been grown by over 600 million barrels, rising from 36.18 million barrels to 37.2 million barrels.
He noted that government had been able to grow the gas reserves from 192 trillion cubic feet to 199.09 trillion cubic feet of gas in two years.
Kachikwu said: “We discovered so many new fields, like Owowo. We have been able to grow rig activity in the country.
“ When we assumed office, the rig activity in the country was about two to three rigs that were operating in Nigeria at the time.
“As at 2017, we had about 21 rigs in operation, up from about 16 rigs in operation in 2016.
“Hopefully, with the big FPSOs, it is beginning to look as if there are possibilities in Nigeria. We expect to see a lot more rig activity in Nigeria.’’
In another development,the Nigerian government is taking oil giants Shell and Eni to court in London, requesting the return of $1.1 billion (969 million euros) as part of a case of alleged corruption dating back to 2011, Bloomberg reported yesterday.
FG alleges that the money was used by the companies to buy an oil exploration licence in the Gulf of Guinea but was diverted to bribes and kickbacks, the report said.
The government alleges that Shell and Eni were partly responsible for the fact that “corrupt Nigerian officials” used the money for personal enrichment, it added.
The alleged corruption is already the subject of a separate court case in Milan in which Nigeria is a civil party. Shell and Eni have always denied any unlawful action.
In a statement yesterday, a Shell spokesman said that the deal in 2011 was “a fully legal transaction with Eni and the Federal Government of Nigeria”.

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Tinubu Orders Fresh Push To Crash Food Prices

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President Bola Tinubu has ordered a Federal Executive Council committee to move swiftly on measures to further reduce food prices across the country.

 

The Minister of State for Agriculture and Food Security, Senator Aliyu Sabi Abdullahi, disclosed this in Abuja, on Wednesday.

 

According to him, the directive focuses on ensuring safe passage of farm produce across transport routes to cut logistics costs.

 

“The President has given a matching order with a Federal Executive Council committee already handling it on how we are going to promote safe passage of agricultural foods and commodities across our various routes in the country,” Abdullahi said at a capacity-building workshop for Senate correspondents.

 

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Nigeria, Africa’s most populous nation, has faced worsening food insecurity since the removal of fuel subsidy, high transport costs, and insecurity on major highways disrupted the movement of goods.

 

Despite government interventions, food remains largely unaffordable for millions.

 

The minister said the plan is tied to Tinubu’s broader vision of food sovereignty—beyond availability to ensure affordability, accessibility, and nutrition on a sustainable basis.

 

To back this up, he revealed that government is set to roll out a Farmer Soil Health Scheme to boost productivity and a revamped cooperative reform initiative to mobilise resources and empower rural farmers.

 

“Mr. President has shown tremendous interest in the cooperative sector as a veritable tool for resource mobilisation, for economic activity generation, and to improve the livelihood of members,” Abdullahi added.

 

The event, with the theme, “Parliamentary Reporting: Issues, Challenges and Responsibilities,” also featured Senate Media Committee Chairman, Senator Yemi Adaramodu; ex-presidential aide, Senator Ita Solomon Enang; and NILDS DG, Prof. Abubakar Sulaiman.

 

 

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Umahi Threatens Defaulting Contractors With EFCC Arrest

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The Federal Government has warned contractors, including foreign firms, that any breach of regulations in road projects awarded to them may lead to arrest by the Economic and Financial Crimes Commission  and the Independent Corrupt Practices and Other Related Offences Commission.

The Minister of Works, David Umahi, issued the warning during an inspection of the ongoing dualisation of the East-West Road (Section IIIA) from Eleme Junction to Onne Port Junction in Rivers State.

The section is being executed by Reynolds Construction Company (Nigeria) Limited.

Responding to questions from journalists, Umahi commended the quality of work on the project but expressed displeasure over the slow pace, stressing that the December completion deadline remains sacrosanct.

On the project, he said:“The quality of the work is excellent, but the pace of work is totally unacceptable. Let me make it very clear to the contractor that this project will neither be reviewed nor varied in price or claims.

“I’m sure we have issued over 10 warning letters to them. If they fail to comply with the completion deadline of December 15, we will not extend it.”

He added that the ministry had already put measures in place to enforce compliance

“The comptroller has negative certificates to issue, and I will recover the money from any of their other projects. All those letters are on record, and when the time comes, they will be invoked. Any contractor who refuses to abide by regulations will have the EFCC and ICPC to contend with,” he said.

Umahi further disclosed that the Federal Government had directed that road projects valued below N20bn would no longer be awarded to expatriate companies, in line with its “Nigeria First” policy aimed at strengthening indigenous capacity in the construction sector.

“This is part of the Nigeria First policy of the Federal Government. Henceforth, no expatriate firm will be awarded any project valued below N20bn. Such projects must go to indigenous companies, while expatriates focus on higher-value projects requiring more technical capacity,” he said.

The minister also noted that the Federal Ministry of Works had adopted a funding prioritisation framework to sustain road projects initially financed by the Nigerian National Petroleum Company Limited under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

He stressed that President Bola Tinubu had directed that none of such projects should be abandoned, adding that priority would be given to critical economic corridors.

Umahi also decried the indiscriminate parking of heavy-duty vehicles on highways, saying it was damaging the pavements of completed sections of the road.

He said letters would be sent to state governors and the Inspector-General of Police to enforce punitive measures against defaulters.

Earlier, the Federal Controller of Works in Rivers State, Mrs Enwereama Tarilade, said RCC had completed 15km of the right carriageway and commenced work on the left carriageway, with one kilometre already laid in Continuously Reinforced Concrete Pavement.

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We’ll Support Federal University Environment And Technology – Ibas

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The Rivers State Government says it will  ensure the smooth and successful takeoff of the newly established Federal University of Environment and Technology (FUET), in  Ogoniland.

This commitment was made yesterday by the Administrator of Rivers State, Retired Admiral Ibok-Ete Ibas (Rtd), during a courtesy visit by the university’s Governing Council and Management team at the Government House, in Port Harcourt.

The high-level delegation was led by the Pro-Chancellor and Chairman of the Council, Professor Don Baridam and  the Vice-Chancellor, Professor Chinedu Mmom.

In his address, Administrator Ibas warmly congratulated the pioneer council and management on their appointments, describing their task as both a recognition of individual accomplishment and a historic call to duty.

“This is not just a recognition of your personal achievements but also a call to history to shape an institution that will have a profound impact on Rivers State, the Niger Delta, and indeed our country,” he stated.

The Administrator commended President Bola Ahmed Tinubu for the establishment of the specialized university in Ogoniland, describing the initiative as “timely and strategic.”

He emphasized that the university’s presence offers a critical opportunity to drive research, innovation, and community-focused solutions to the region’s pressing environmental and developmental challenges.

He further noted that the university’s core focus aligns perfectly with the priorities of his administration.“We consider this university not merely as another institution of higher learning but as a strategic partner in our collective effort to rebuild Rivers State under the ongoing state of emergency and beyond,” he affirmed.

Responding to specific requests presented by the delegation, Administrator Ibas assured the university of immediate support in critical areas essential for the its commencement.

These include the provision of operational vehicles, key facilities, and the completion of the access road to the campus, adding that other vital needs, such as perimeter fencing, refuse disposal, and the issuance of a Certificate of Occupancy, would be addressed within the framework of the state’s broader infrastructure and support programmes.

To ensure swift action, the Administrator directed the Secretary to the State Government (SSG) to work closely with the university’s Governing Council to prioritize the sequence of requests, particularly those tied to the commencement of academic activities in September 2025.

“Let me assure you that Rivers State Government will stand as a dependable partner to the Federal University of Environment and Technology. We see this university as part of our long-term investment in knowledge, innovation, and the future of our youths,” he emphasized.

In his remarks, the Pro-Chancellor and Chairman of the Governing Council, Professor Don Baridam, reaffirmed the university’s commitment to academic excellence, innovation, and community development.

He disclosed that the Federal Government has directed the institution to formally commence its academic session in September 2025, adding that preparations are in full swing to ensure a smooth take-off with adequate infrastructure and resources in place.

“Today’s meeting marks the beginning of a strategic partnership between the Rivers State Government and FUET, envisioned to establish the university as a premier hub for research, innovation, and sustainable development in the Niger Delta”, he said.

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