CHINESE INVESTORS TO INVEST ADDITIONAL $70BN IN NIGERIA’S
PETROLEUM SECTOR – KACHIKWU
The Minister of State for Petroleum, Dr Ibe Kachikwu, on
Wednesday said Chinese private sector companies had pledged an additional
investment of 70 billion dollars to the Nigerian economy.
Kachikwu said this
while addressing State House correspondents on the outcome of the Federal
Executive Council (FEC), presided over by President Muhammadu Buhari in the
Presidential Villa, Abuja. He said that
the Council was briefed on the outcome of the ministry’s China roadshow
which took place in January.
He said that 70 billion dollars pledges were
different from the pledges that were made earlier when President Buhari visited
China “which was an all African type front basis; this is completely
separate’’. He announced that the ministry’s investment target in China was
initially to raise 40 billion dollars, which was the total cost of the nation’s
infrastructure gap for the oil industry.
He said that the China roadshow,
however, raised pledges of over 70 billion dollars for NNPC and government
related potential investments and loans facility. The minister added that it
would be a great achievement If the country could realise at least 20 per cent
of the pledges.
Kachikwu disclosed that a 40-man business team from China would
arrive in the country later in October. According to him, some of the facility
lines close to about four billion dollars, out of the 70 billion dollars
pledges, are almost readily available as investment packages to the Nigerian
economy.
“So, a lot more of work is still on the pipeline and how we would now
crystallise this into actual investment, but we are encouraged by what we are
receiving in terms of the distinction and the contacts. “Hopefully by the end
of the month when this 40-man team comes, we would be able to make substantial
progress.”
According to Kachikwu, the Council also approved the hosting of
international flare reduction convergence meeting in Nigeria between Nov. 30
and Dec. 1. “We will use that as a chance to role out efforts by the ministry
to address the flare.
“You are aware Nigeria is next to Russia in terms of the
highest flaring nation. “Even though we have progressed positively to reduce 70
per cent of the flare, the 30 per cent we still flare is about 10 per cent of
the world’s flare. So, this is a huge amount of gas.
He, however, stated that
the country was doing a lot in terms of gas policies which would embody the
flare initiatives. He said that Nigeria had signed onto the 2030 world Bank/UN
led efforts made in eliminating flare completely by 2030.
“The memo was to
intimate the council that we have been asked to host the flare conference and
council approved the motion to host that.” The minister said that the Council
approved the resuscitation of the National Council on the Hydrocarbon.
According to him, the council is an ombudsman that meets once a year in an
extraordinary times to review policies in the oil and gas sector of the
nation’s economy.
“It should be a gathering of people from business, oil
sector, oil communities and ministries that are directly or indirectly affected
by the policies we role out in the ministry. “The council had been in existence
but in the last couple of years, disappeared into oblivion and today the
council approved for us to resuscitate it.
“The criticality is that, as we continue
the dialogue we have been having with militants, creating such a fora enables
anybody who has an interest in the area, to converge and develop the thinking
process that will guide policies in this sector,’’ he added.
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