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Business [VIDEO] The Tangible Successes Achieved About Petrol Supply in Nigeria- Kachikwu



Nigeria's Minister of State for Petroleum Resources, Ibe Kachikwu has announced that the country has seen a drop in importation of petroleum products.

He said this in a podcast on Saturday.

According to Kachikwu, the reduction has paved the way for massive investments in the downstream oil sector, as marketers have resumed importation of PMS following the petrol price modulation mechanism introduced by the government in May last year.

“First we’ve moved from a fully subsidy based sector to a partially liberalised sector. I say partially because we haven’t quite achieved the template to have a fully liberalised sector. What that has done for us is that it has reduced consumption from 50 million litres to 37 million litres a day.

“Some of that figures are fraud-based, others are potential diversion numbers, but what is happening now is that the effect of our response curbed the appetite for consumption and left us with a much more robust reserve.

“In addition, the pricing governance, which was a modulating concept, enabled us to come closer to what the realities of pricing were and so this enabled marketers to jump back into the business and continue to massively import.

“So what you find over a period of between when we introduced this measure (in May 2016) till towards the end of last year, was that the NNPC reduced its importation profile from supplying about 90 to 95 per cent of the market to about 50 per cent, which was massive, providing jobs, activity, investment and stability.”


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