Nigeria approves new oil policy

Nigeria Oil policyThe new administrative oil policy in Nigeria is expected to transform the future of oil and gas sector in the country. (Image source: Yaruman5/Flickr)The Nigerian government has approved new national oil administration policy, aiming to improving the country’s oil fortunes by boosting revenues from the commodity

Ibe Kachikwu, minister of state for petroleum, said that Nigeria has passed this new oil policy after 2007, dealing with all the spectrums in the Nigerian national oil industry.

Briefing to the state house correspondents at the end of the meeting, he added that the government had already began implementing some of the policy.

In a statement to the Premium Times Nigeria, he stated, “We are working assiduously to exit the importation of fuel in 2019 and we also captured the cash calls changes we have done which enables the sector to fund itself through incremental volumes.”

Under the new policy, the Nigeria National Petroleum Corporation (NNPC) has been recognised for its operational efficiency and accountability. Further, the new policy captures the issues in the Niger Delta and the government’s focus on the stability and consistency in developing the oil sector in the country.

"Apart from the fact of fluidity in pricing and uncertainty in terms of the price regime in crude, we are pushing for a refining processing environment and moving away from exporting as it were to refining petroleum product,” said Kachikwu to the source.

Also, the sale of Nigerian crude oil will be looked over in the new policy. Kachikwu explained that with the availability of a lot of geographical market internationally, Nigeria will see the contracting and sales opportunities of the domestic crude oil for a longer period of time.

He concluded, “Those are the fundamentals, it's a document if well executed will fundamentally take the change process that we began in 2015 to its logical conclusion hopefully in the next couple of years.”

The approval of the new policy was given at the recent FEC meeting chaired by Yemi Osinbajo, the acting president of Nigeria.

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