The Minister of State for Petroleum Resources, Dr. Emmanuel Ibe Kachikwu, Thursday disclosed that the Federal government would in the next two months launch an infrastructure rebirth plan with which the country would leverage to attract private finance to upgrade her oil and gas infrastructure.
Speaking at a stakeholders meeting in Abuja, to review the challenges of the sub sector market, Kachikwu affirmed that it is time for Nigeria to look at alternative fuel sources like LPG which are clean and less expensive for the country.
He revealed that NNPC currently records about N1.4 trillion yearly as under-recovery, government’s euphemism for fuel subsidy, from its importation and sale of Premium Motor Spirit at N145 per litre.
The rebirth plan, according to him, would enable private investors put in money in key infrastructure assets across the entire value chain of the sector.
“We need to move very rapidly, create the right incentives and encourage investments in infrastructure. I have challenged some of the players that said we cannot do this in Warri, the dredging is very essential; the water channel is very low and we cannot do this in Calabar for the same reasons. Lagos has only one known storage facility for LPG. What presents a challenge for investors to come together and actually dredge and create tax allowances for most of these investments?”
According to him, the country needs to find a way of finding enough incentives that enables the private sector to go in very bullishly and put the money where it is supposed to be and enable government to be able to reap from tax.
Speaking further, he said “clean energy is very essential and we need to move away from complete utilisation in our transport sector of only PMS which is creating a lot of under-recovery of N1.4 trillion per annum of exposure to the government.”
"If we deepen the regulation, deepen the licensing and enforcement, we should be able to get there.”