Nigeria no longer has resources to fund oil industry — FG

ABUJA —The Federal Governmentstated, yesterday, that the countryno longer has the resourcestofund theoil and gas industry, and is therefore, considering and developing new modelsof financing the industry in the days ahead.
Speaking at a town hall meeting in Abuja, Minister of Statefor Petroleum Resources, Dr. Ibe Kachikwu, said in January 2016 the final decision on the fate of the country’s refineries would likely be made, while it had also concluded arrangement to adopt a price modulation mechanism that would seeit settinga price ceiling of between N87 and N97 per litre for Premium Motor Spirit, PMS, also known as petrol.
Kachikwu, who doubles as theGroup Managing Director ofthe Nigerian National PetroleumCorporation, NNPC, also disclosed that he had received thePresidency’s approval to commencethe final phase of the restructuring of the NNPC, which would see the corporation unbundled into four components,while about 1,100 of NNPC headquarters’ staff would bedisengaged.
On the issue of paucity of funds, Kachikwu said: “Financing is going to bea key componentof our goal, because new modelsof financing would have toemerge. The country does not have the sort of resourcesto continue to fundthe oil industry. As we go upstream, we are going to begin to seea lot ofinnovative financing mechanism toprovide funding for the oil industry.
“My dream, if I achieve it, is that by theend of 2016, we would completely exit cash calls and beable tofind ways tohelp support our businessand get a lot moreautonomyin terms of running the industry and report, basically, profit tothe Federal Government.”
Unbundling of NNPC into four companies
He added that the unbundling process would seethe NNPC broken down into four key components,while about 1,100 of NNPC headquarters’ staff would be disengaged.
On the issue of paucity of funds, Kachikwu said: “Financing is going to be a key component of