FG has embarked on aggressive diversification of non-oil sector- Buhari

President Muhammadu Buhari has said that the distortions of the Covid-19 pandemic have compelled his administration to embark on aggressive diversification of the non-oil sector to mitigate the impact of the virus.

The President said this while making his remarks during the 6th Triennial National Delegates Congress of the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), in Abuja on Thursday with the theme “The Future of Work Post Covid-19 and Energy Transition”.

President Buhari, who was represented by the Minister of State for Petroleum Resources, Timipre Sylva, said the Covid-19 pandemic and progressive decline of crude oil prices in 2020 has made it imperative for Nigeria to aggressively pursue the development of non-oil economy and diversification of revenue sources as the country braces for a possible lower-for-longer crude oil price era.

“The government is factoring in these current realities in its reform agenda. Consequently, we are developing strategic survival measures to ensure economic sustainability and job security. While we seriously believe that a diversification plan to non- oil economy has become national imperative,” he said.

The President however, assured that despite the challenges in the oil and gas sector, crude oil will remain prominent in the global energy mix in the medium, to long term.

He stressed that since PENGASSAN consists of seasoned professional men and women who continue to make a significant contribution to the development and sustainability of the oil and gas industry in Nigeria, “this implies that massive opportunities are bound for members of PENGASSAN.”

The President lauded the courage and expertise of members of the association for their tireless, fearless and very significant contributions to the development of the Nigerian oil and gas industry in particular and the Nigerian economy in general.

He said “Nigeria has earned its pride of place in the comity of oil and gas producing nations standing at number 10and 9 positions in global oil and gas reserves respectively. Nigerian oil and gas industry remains the main driver for economic and infrastructural development of the country. It is the major contributor of Foreign Exchange earnings for the Nigerian accounting for around 10% of the nation’s GDP as well as providing employment to a significant number of skilled, semi-skilled and unskilled labour.

“This would not have been possible without the contribution of PENGASSAN. Recognizing the significance of the oil and gas industry as an enabler for national growth and development my government carved out some strategic priorities for the Ministry of Petroleum Resources to stimulate the sector for the sustainability of the Nigerian economy, create well-paid jobs and take millions of Nigerians out of poverty.

“To this end, significant transformation is currently ongoing in the oil and gas sector. The transformation initiative will definitely require highly skilled manpower. Therefore we are counting on your illustrious association to continue to provide the much-needed support to meet our developmental mandates.”

President Buhari noted that Government collaboration with the association will focus on gas to transmute Nigeria from the conventional dependence on white products for prime movers to a cleaner, more available, accessible, acceptable and affordable energy use in gas.

This, he noted, would cushion the effects of deregulation and provide enormous job opportunities for Nigerians while revamping the existing refineries, Greenfield and development of modular refineries are still springing up even as these activities will continue to engage members of PENGASSAN and even sister association, the NUPENG.

Outgoing President of PENGASSAN, Ndukaku Ohaeri, in his opening remarks, urged the federal government to revamp Nigeria’s ailing refineries and associated pipelines even as he tasked the government to finalize the issues of the Petroleum Industry Bill (PIB).

“We continue to emphasize the need for the Federal Government to bring back the nations’ refineries and create enabling environment for investment in the refining business sector to thrive.

“We continue to advocate for the adoption of the NLNG model in running the nation’s refineries when fully revamped and the creation of an enabling environment for the establishment and operation of modular and private refineries and we are happy that the current NNPC led management is favourably disposed to such.

“We encourage the National Assembly to resolve the challenges that have characterized the non-passage of the PIB in the past. The non-passage of the PIB has denied Nigeria lots of benefits that could have accrued to it from the hydrocarbon industry. Nigeria has lost so much revenue that could have accrued to the government coffer, as existing investments are stalled and potential investors scared of coming,” he said.

Others who graced the occasion included; Minister of Labour and Employment, Chris Ngige, who was represented by the Permanent Secretary, William Alo; Group Managing Director (GMD)of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, who chaired the occasion; Governor Umar Fintiri of Adamawa state, who sent a representative among others.