Petroleum Ministry’s Silver Bullets for Oil Sector Reforms

95
531
For More Enquiry: 08052442020

the Nigerian petroleum industry, over the years, has been described as a cesspool of corruption but the current administration, worried about the tag, has begun a number of initiatives to reform the industry.

Specifically, the petroleum industry had acquired a notorious reputation for sleaze, sharp practices, opacity, and under-hand dealings among many other negatives. These had deprived the country of the huge benefits accruable from the petroleum industry.

The industry, despite its immense potentials and earnings over the last 50 years, had made only an insignificant contribution to the growth of the Nigerian economy and had in most cases been described as the major reasons for Nigeria’s under-development; a reflection of the resource-curse syndrome.

Particularly, between 1999 and 2017, Nigeria recorded huge earnings from the petroleum industry, but had been unable to utilize the funds to improve the lives of its citizens, neither has it used it to develop the economy in a significantly sustainable manner.

Poverty amidst huge oil earnings

 

Data compiled from the Central Bank of Nigeria, CBN, showed that Nigeria earned a gross income of N77.348 trillion from the oil and gas industry from 1999 to 2016, and after various deductions, net oil revenue over the same period stood at N41.038 trillion.

Nigeria’s gross oil earnings translates to an average annual earning of N4.55 trillion, while the net oil revenue translates to average annual earning of N2.414 trillion.

Ironically, despite the earnings from the industry, the country has nothing concrete to show, as it is still besieged with inadequate industrial and social infrastructure, epileptic power supply, low foreign exchange reserves, low savings and an abysmally low standard of living. The country’s currency is currently exchanged at about N360 to a US dollar.

Nigerian Natural Resource Charter, NNRC, in collaboration with an international governance watchdog, Natural Resource Governance Institute, NRGI, had also disclosed that about N7.1 trillion is currently trapped among individuals and operators in Nigeria’s petroleum industry.

It stated that the sum comprises misappropriated and unremitted funds withheld by the respective parties, which should have been paid into government coffers.

A new set of reforms
Perhaps heeding the demand for more transparency in the management of the industry, the Ministry of Petroleum resources, led by the Minister of State for Petroleum Resources Dr. Ibe Kachikwu, an experienced private sector oil industry executive, had introduced far-reaching reforms to bring about a transformation in the industry, and these have started to yield positive fruits.

The petroleum ministry identified key challenges in the industry to include ineffective regulation, concentration and control of petroleum resources within limited set of license holders, Joint Venture funding issues, high operating costs, unsustainable importation of petroleum products, limited refining capacity, insecurity in the Niger Delta and dilapidated midstream oil network as a result of systemic inefficiencies and vandalism.

Other challenges the industry was facing included an unstructured and unprofitable NNPC that was in dire need of understanding of its purpose; huge subsidy and foreign exchange distortions arising from the cut in oil production and reduction in crude oil prices as well as shrinking national oil reserves.

The Petroleum Ministry transformation programme was predicated on the need to attend to the numerous challenges bedeviling the industry.

A key initiative the ministry is using to drive the transformation of the oil and gas industry is the Seven Big Wins.

Its reforms initiatives were based on the fact that the role of government in the oil and gas sectors needs to be better clarified whilst the policy, regulatory and commercial institution need be given a refocused mandate to ensure better sector governance, transparency of regulations and operations, accountability of the institutions and removal of opacity around the industry.

Some of the initiatives include the signing of a novel agreement on a new sustainable funding framework for joint venture cash call operation, which it said would not only sustain JV operations but would also be a key enabler for incremental production from the JV operations.It is also focusing on growing Nigeria’s gas reserves through active explorationand this can be seen in the directive of the Nigerian National Petroleum Corporation, NNPC, to expedite exploratory activities in frontier basins across the country. The Ministry had also introduced a fiscal reform policy targeted at tackling Nigeria’s energy dilemma of addressing energy availability, enhancing energy accessibility and promoting energy availability.

The Ministry said it would enhance fiscal neutrality, create a fiscal basis that would encourage investments and market developments, while emplacing competitiveness and cost efficiency for the benefit of both government and the industry operators.

The Ministry had also proposed that, henceforth, most oil and gas infrastructure development projects would be financed and managed through private sector participation, due to the competing demands for government resources from other public sectors such as education, health and transportation infrastructure, among others.

The Ministry had also shown its determination towards addressing the Niger Delta issues and building a peaceful and prosperous Niger Delta, with emphasis on job creation for our teaming unemployed youths, investment in infrastructure, energy and promotion of sustainable livelihood.

So far, Vice President Yemi Osinbajo and the Minister of State for Petroleum Resources, Dr. IbeKachikwu, had gone round the oil producing states and have been working very closely with all relevant stakeholders such as communities, state governors, government agencies, oil and gas companies to deploy a pertinent developmental framework that will ensure lasting peace and sustained development in the region.

Also, the Ministry, in line with its National Content and indigenization drive, is aggressively working on using the country’s vast oil resources as a catalyst for the provision of employment opportunities for Nigerians.It had shown its commitment to ensuring a distinct preference for Nigerian goods and services through creating incentives for domestication of capital spending.To this end, in addition to the Gas Industrial Park in Delta State, the Ministry of Petroleum is working on creating clusters of industrial parks across the Niger Delta states through the Nigerian Content Development Management Board.

The ministry is also pushing for the speedy passage of the petroleum industry bill, which it argued, is expected to establish and clarify the rules, procedures and institutions that would entrench good governance, accountability and transparency in the oil and gas sector.The Bill, it also stated, aims to introduce new operational and fiscal terms for revenue management to enable the government retain a higher proportion of the revenue derived from operations in the petroleum industry than previously obtained.

Share Buttons
For More Enquiry: 08052442020

95 COMMENTS

  1. I simply want to say I’m all new to blogging and site-building and seriously loved your web blog. Probably I’m planning to bookmark your blog . You absolutely come with very good stories. Many thanks for sharing with us your blog.

  2. What i don’t understood is actually how you are now not actually much more smartly-favored than you might be right now. You’re very intelligent. You understand thus considerably on the subject of this subject, produced me in my view consider it from a lot of numerous angles. Its like men and women aren’t interested until it is one thing to accomplish with Lady gaga! Your personal stuffs great. Always deal with it up!

  3. Howdy just wanted to give you a quick heads up. The words in your content seem to be running off the screen in Safari. I’m not sure if this is a formatting issue or something to do with web browser compatibility but I figured I’d post to let you know. The style and design look great though! Hope you get the problem solved soon. Cheers

  4. I must show some thanks to this writer just for bailing me out of this type of incident. Because of researching through the online world and coming across notions which are not pleasant, I thought my entire life was over. Being alive without the solutions to the difficulties you’ve fixed by way of this website is a critical case, as well as the ones which could have badly affected my career if I hadn’t noticed your web page. Your main competence and kindness in playing with every part was helpful. I’m not sure what I would’ve done if I hadn’t come upon such a subject like this. I am able to at this point relish my future. Thanks a lot so much for this impressive and sensible guide. I will not be reluctant to refer the sites to anyone who would need care on this issue.

  5. Hmm is anyone else having problems with the pictures on this blog loading? I’m trying to figure out if its a problem on my end or if it’s the blog. Any suggestions would be greatly appreciated.

  6. Definitely believe that which you stated. Your favorite justification seemed to be on the net the simplest thing to be aware of. I say to you, I certainly get irked while people think about worries that they plainly don’t know about. You managed to hit the nail upon the top and defined out the whole thing without having side-effects , people can take a signal. Will likely be back to get more. Thanks

  7. Somebody essentially help to make seriously posts I might state. This is the first time I frequented your website page and so far? I amazed with the analysis you made to make this particular put up extraordinary. Magnificent activity!

  8. Nice read, I just passed this onto a colleague who was doing some research on that. And he just bought me lunch since I found it for him smile Thus let me rephrase that: Thanks for lunch! “One who’s our friend is fond of us one who’s fond of us isn’t necessarily our friend.” by Geoffrey F. Albert.

  9. I like what you guys are up also. Such intelligent work and reporting! Carry on the excellent works guys I have incorporated you guys to my blogroll. I think it’ll improve the value of my web site :).

  10. I just could not depart your site before suggesting that I actually enjoyed the standard information a person provide for your visitors? Is going to be back often to check up on new posts

  11. Its such as you read my thoughts! You seem to grasp a lot about this, such as you wrote the guide in it or something. I believe that you can do with some p.c. to drive the message house a little bit, but other than that, that is wonderful blog. A fantastic read. I’ll certainly be back.

  12. Hi, i read your blog occasionally and i own a similar one and i was just wondering if you get a lot of spam feedback? If so how do you prevent it, any plugin or anything you can suggest? I get so much lately it’s driving me mad so any assistance is very much appreciated.

  13. Woah! I’m really loving the template/theme of this blog. It’s simple, yet effective. A lot of times it’s tough to get that “perfect balance” between user friendliness and visual appeal. I must say that you’ve done a superb job with this. Additionally, the blog loads extremely fast for me on Firefox. Outstanding Blog!

  14. Howdy! I’m at work browsing your blog from my new iphone 3gs! Just wanted to say I love reading your blog and look forward to all your posts! Keep up the fantastic work!

  15. Howdy, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam remarks? If so how do you prevent it, any plugin or anything you can recommend? I get so much lately it’s driving me insane so any assistance is very much appreciated.

  16. That is the fitting blog for anybody who desires to find out about this topic. You realize so much its nearly hard to argue with you (not that I actually would want…HaHa). You definitely put a brand new spin on a subject thats been written about for years. Great stuff, just nice!

  17. Greetings! I know this is kind of off topic but I was wondering if you knew where I could find a captcha plugin for my comment form? I’m using the same blog platform as yours and I’m having problems finding one? Thanks a lot!

  18. I am really enjoying the theme/design of your site. Do you ever run into any internet browser compatibility issues? A couple of my blog visitors have complained about my blog not working correctly in Explorer but looks great in Opera. Do you have any solutions to help fix this problem?

  19. You can certainly see your enthusiasm in the work you write. The sector hopes for even more passionate writers like you who aren’t afraid to mention how they believe. All the time go after your heart. “No man should marry until he has studied anatomy and dissected at least one woman.” by Honore’ de Balzac.

  20. I needed to compose you a bit of word just to thank you once again over the breathtaking solutions you have shared here. It’s certainly incredibly generous of you to grant without restraint precisely what many people would’ve offered as an e book to help with making some money for their own end, especially considering that you might well have tried it if you decided. The basics also acted like the good way to recognize that most people have the identical fervor similar to my personal own to find out a little more with respect to this issue. I am sure there are a lot more pleasant times ahead for individuals that read your blog.

  21. That is the suitable blog for anybody who wants to find out about this topic. You understand so much its almost laborious to argue with you (not that I really would want…HaHa). You positively put a brand new spin on a subject thats been written about for years. Nice stuff, simply nice!

  22. I have to show my respect for your kind-heartedness for men who really want help with that content. Your special commitment to getting the solution throughout ended up being especially useful and has helped regular people much like me to achieve their targets. Your personal useful facts implies a lot to me and even more to my fellow workers. Thank you; from all of us.

  23. Hey! This is my 1st comment here so I just wanted to give a quick shout out and say I really enjoy reading through your posts. Can you recommend any other blogs/websites/forums that cover the same subjects? Thanks for your time!

  24. Hello, i think that i saw you visited my website thus i came to “return the favor”.I’m trying to find things to improve my site!I suppose its ok to use some of your ideas!!

  25. Hi, I think your blog might be having browser compatibility issues. When I look at your blog site in Opera, it looks fine but when opening in Internet Explorer, it has some overlapping. I just wanted to give you a quick heads up! Other then that, amazing blog!

  26. One thing is that one of the most popular incentives for applying your card is a cash-back or maybe rebate offer. Generally, you get 1-5 back on various expenditures. Depending on the credit card, you may get 1 back again on most buying, and 5 back on buying made on convenience stores, filling stations, grocery stores as well as ‘member merchants’.

  27. hi!,I really like your writing so a lot! percentage we communicate more approximately your post on AOL? I require a specialist in this space to solve my problem. May be that is you! Taking a look ahead to peer you.

  28. Good – I should definitely pronounce, impressed with your website. I had no trouble navigating through all the tabs and related info ended up being truly simple to do to access. I recently found what I hoped for before you know it in the least. Quite unusual. Is likely to appreciate it for those who add forums or something, site theme . a tones way for your client to communicate. Nice task..

  29. Hey! This is my first visit to your blog! We are a group of volunteers and starting a new initiative in a community in the same niche. Your blog provided us useful information to work on. You have done a extraordinary job!

  30. It’s in point of fact a nice and helpful piece of info. I am satisfied that you shared this useful information with us. Please stay us informed like this. Thanks for sharing.

  31. I have seen lots of useful issues on your web page about pc’s. However, I have got the impression that notebooks are still not quite powerful sufficiently to be a good option if you often do projects that require a lot of power, such as video editing. But for website surfing, word processing, and a lot other typical computer work they are okay, provided you can’t mind your little friend screen size. Many thanks for sharing your notions.

  32. Hello, you used to write wonderful, but the last several posts have been kinda boring¡K I miss your great writings. Past few posts are just a bit out of track! come on!

  33. obviously like your web-site but you have to check the spelling on several of your posts. Many of them are rife with spelling problems and I to find it very bothersome to inform the truth however I will definitely come again again.

  34. I haven’t checked in here for a while because I thought it was getting boring, but the last few posts are good quality so I guess I’ll add you back to my daily bloglist. You deserve it my friend 🙂

  35. Hey very cool blog!! Man .. Excellent .. Amazing .. I will bookmark your blog and take the feeds also…I’m happy to find numerous useful information here in the post, we need develop more techniques in this regard, thanks for sharing. . . . . .

  36. A powerful share, I simply given this onto a colleague who was doing a bit analysis on this. And he in actual fact bought me breakfast because I found it for him.. smile. So let me reword that: Thnx for the deal with! However yeah Thnkx for spending the time to debate this, I feel strongly about it and love studying more on this topic. If possible, as you become expertise, would you mind updating your blog with more details? It is extremely helpful for me. Big thumb up for this blog put up!

  37. I like the helpful info you provide in your articles. I will bookmark your weblog and check again here regularly. I am quite sure I will learn a lot of new stuff right here! Good luck for the next!

  38. Please let me know if you’re looking for a writer for your blog. You have some really great articles and I think I would be a good asset. If you ever want to take some of the load off, I’d really like to write some material for your blog in exchange for a link back to mine. Please send me an email if interested. Cheers!

  39. Wow! This can be one particular of the most helpful blogs We’ve ever arrive across on this subject. Actually Wonderful. I’m also a specialist in this topic so I can understand your effort.

  40. Thanks for your own effort on this site. Kate enjoys conducting investigation and it is simple to grasp why. My partner and i know all relating to the lively means you provide great solutions via the web blog and in addition welcome response from people on this topic then our favorite child is now being taught a lot of things. Take advantage of the rest of the year. You are performing a useful job.

LEAVE A REPLY

Please enter your comment!
Please enter your name here