Budget 2017: Kachikwu reels out revenue generation plan

The Federal Government on Wednesday unveiled plans to accelerate its revenue accruable from oil and gas resources through collection of outstanding royalties and renewal of leases expiring in 2017.

Ibe Kachikwu, Minister of State for Petroleum Resources gave the assurance during the 2016 budget appraisal and 2017 budget defence held at the instance of the House of Representatives.

To achieve this, the regulatory agencies is expected to “attract investments, implement Memorandum of Understandings (MoUs) and investment road shows in the United States of America, Asia, Middle East and Europe.”

Federal Government is also expected to conduct oil blocks allocation and marginal fields’ award, track gas flare commericalisation and develop gas infrastructure and investments in the year under review.

According to the Minister, converted efforts would be directed towards refinery revamp, focus on downstream issues in in and operations, resolve Niger Delta militancy issues, stabilise oil production, track oil production to destinations, develop agreement/framework for attachment opportunities with International Oil Companies (IOCs) and partners as well as complete new Joint Venture Cash Call roll out system.

“In retrospective, 2016 was a challenging year for the Nigerian economy which relied solely on oil. It is imperative that lessons learned must inform our plans for reforming the sector to bring real change to the citizens.

“Our focus must be in promoting efficiency, formulating relevant policies, putting in place string infrastructural development especially joint venture in gas and domestic refining capacities, attraction of new Foreign Direct Investments (DFIs) and stabilising the statutory and regulatory environment of the sector,” he urged.

To achieve this feat, Kachikwu explained that the 2017 focus will be geared toward gazette of new policies on PE and gas, fast-track the passage of petroleum fiscal policy and engage in various pre and post Petroleum Industry Bill (PIB) activities for which N150 million was appropriated for this year.

Some of the challenges identified by the Minister include: underfunding and untimely releases of appropriated funds; weak oil and gas infrastructure which impacted on power to gas initiative; pipeline vandalism, oil theft and willful spillage; insecurity especially in the Niger Delta area and absence of enabling law (PIB is still a draft form).

While reiterating the commitment of the Ministry towards achieving the at goals in the 2017 fiscal year, Kachikwu said: “there’s an urgency attached to the recovery of economy and petroleum sector is crucial to its attainment.

“The sector must provide a very robust income stream for the economy through petroleum and gas in particular.”