President Muhammadu Buhari has said that the Federal Government has shown unparalleled commitment to the overhauling of Nigeria’s Oil and Gas Industry.
The President disclosed this at the inauguration of the 4th Nigeria International Petroleum Summit (NIPS) held at the Banquet Hall of the Presidential Villa, Abuja, on Monday, 7th June 2021, represented by Minister of State for Petroleum Resources, Chief Timipre Sylva.
What the Presidency is saying
“The ambitious goal of ramping up crude oil production to at least 4 million barrels per day and building a reserve of 40 billion barrels remains a sacrosanct and guiding principle to our overall outlook for the industry,” Sylva said.
The Minister, speaking on the president’s behalf, added that crisis is often an opportunity to redefine objectives and provide the pathway for rediscovery. He noted that the crisis plaguing the oil and gas industry today was exacerbated by the COVID-19 pandemic.
“Addressing the crisis posed by the pandemic has presented both challenges and opportunities. The immediate challenge is that the global agenda for energy transition has taken the back seat as governments across the world are now concerned about managing the pandemic and its impact on economies than the quest for energy transition,” he said.
The Minister added that Nigeria is on track in moving its economy to cleaner energy sources in the area of renewables, with gas currently serving as the bridge to achieving that. He said that due to oil price volatility, Nigeria’s oil and gas industry needs to “re-invent itself so that we can fully utilize the dividends to set the country on the path to industrialization and prosperity,” urging for collaboration, which he said should be the paradigm shift that needs be emphasized at the summit.
In case you missed it
On overhauling Nigeria’s oil and gas scene, the deregulation of the sector is also a focus for the FG, as Nairametrics reported earlier this year that the FG added some changes to the Petroleum Industry Bill (PIB) which includes the reduction of hydrocarbon tax to 30% for converted leases, down from 42.5% in its original plan, in a bid to attract more investors to Nigeria’s oil and gas sector.