ABUJA – Group Managing Director of the Nigeria National Petroleum Corporation and Ministerial Nominee, Dr. Emmanuel Ibe Kachikwu, yesterday told the Senate of the Federal Republic that there was no intention to remove subsidies on petroleum products.
Fielding questions from the senators at yesterday screening, the GMD disclosed that President Mohammadu Buhari was averse to subsidy removal on the premise that there has to be adequate palliatives in all sectors of the economy before consideration could be given to it.
He also announced that Nigeria was losing N15 billion annually due to absence of Petroleum Industry Act, and promised breaking down the voluminous document for peace meal implementation should he have the opportunity to do so.
Dr. Emmanuel Ibe Kachikwu (Delta) told the senators that since his assumption as Group Managing Director as has engaged the Nigeria National Petroleum Corporation (NNPC) in contract cancellation, restructuring and value addition.
Mr. Kachikwu denied that the NNPC staff were owed five or six months? salary.
He said NNPC has one of the best retirement packages in Nigeria.
He announced his intention to distribute free gas cylinders to citizens, so as to reduce demands on kerosine.
Mr. Kachikwu also announced that there was no plan to remove subsidy on PMS and kerosene, saying it is a rumour. He said the NNPC was working on policy that will see the production of more kerosene.
The GMD however expressed his support for outright removal of petroleum subsidy, but explained that when the matter was tabled before President Mohammadu Buhari, he was very much concerned with palliatives, hence he is yet to approve of it.
He noted that current petroleum supply problems could be tackled mid-term through establishment of strategic reserve that will take off the burden of exorbitant landing cost and in the long-term fix the refineries to enable them meet demands of Nigerians. “Strategic reserves and sustenance of refineries will be our priority”, he stressed.
He noted that lack of maintenance was responsible for the shutdown the nation’s refineries regretting that no meaningful Turn-Around-Maintenance (TAM) of the country’s refineries in the last 10 years, which trend he has been working to reverse.
According to him, any refinery that cannot refine at least 60 per cent of its capacity cannot be said to be producing, hence he is working hard to achieve the fit. He added that when the refineries produce at acceptable capacity, kerosine would be available and the cost reduced.
He therefore noted that he has resolved that by January next year, 2016, a review of refineries’ performances would be done, to determine which is producing and which is not.
Mr. Kachikwu said if confirmed minister, he would consolidate on the changes he has brought into the oil industry in the last six weeks of his appointments as GMD of NNPC.
This is even as Babatunde Raji Fasola (Lagos) canvassed introduction of State Police, to mitigate sundry criminal cases bedeviling Nigeria.
There is necessity first, to decentralize. We are under policed; Federal Government cannot protect at the micro levels. Let us start with State Police. It should be liberalized, such that those who cannot fund it should not start at all, while those who can should start. The training centers should be federal government established. The uniform could be the same with federal while the deferences should be the state code.
Value Added Tax is meant to stimulate production; let’s encourage productivity and allow states who produce more to take most of it; there is no state that cannot do one form of productive activity or the other; until we take tough stance, until we make tough choices, hope for tomorrow will be lost. Is saw criminals as my competitors hence, we took security very seriously.
Our perception of loan comes from unfortunate experiences of the past. Most of the loans such as FADAMA I,ii,III we were paying were borrowed on behalf of states. We must borrow to stimulate the economy, we must borrow to grow the economy. However, we must review our borrowing methods. The credibility of a country is not how much it has in the bank but, its ability to pay its debts and remain credit worthy. Out debts should be credible, I won’t borrow to pay salaries, I won’t borrow to import food. It should grow the economy through provision of basic infrastructure.
On alleged opening of a website with N78 million, Fashola noted: “I don’t fix contract prices, it is an institutional process. The only training I have is that of a lawyer, But in order to execute works on a project we need the input of architect, quantity surveyors, structural engineer and we have consulting ministries; For civil works it is the Ministry of Works, for science it is the Ministry of Science and Technology among others.
Now periodically, they do market surveys with the Ministry of Economic Planning , the Statisticians are there to fix prices from biro to Iron rod to cement and it is approved and becomes the benchmark price of government procurements, nobody can award any other contract over that benchmark.
The unfortunate thing about money is that it often raises suspicions even among brothers. Nobody have alleged that I have corruptly enriched myself, I could not be the master of computers and technology, I need something to do my work. or award contracts”.
Abubakar Malami (Kebbi) took his turn to insist on implementation of Administration of Criminal Justice Act and passage of pending Bills complementary to development of the law.
He further asserted that administration of Justice system should be a collaborative efforts of all tires of government, and that is should be isolated from external political interference.
The nominee also stressed the need for a “clear cut policy in place” for the Nigerian Prisons Department, to cater for skill acquisition of inmates.
Sen. Chris Nwabueze Ngige (Anambra) was happy to be back home to the Senate to see the face of his colleagues. He recalled how he served in various Committees of the 7th Senate of the Federal Republic under conducive atmosphere, created by the senators.
He told the senators that he was going into government, on the executive side, to help fix Nigeria, which economy he noted has been ran aground. “We are in the era of change and this change will be holistic”, he stressed. He was thereafter asked to bow and go.
Taking his turn, Sen. Aisha Jummai Alhassan (Taraba), congratulated the senators particularly her colleagues in the 7th Senate, on their reelection to the 8th Senate.
She spoke about her experience in the judiciary in the past. According to her, corruption in the Judiciary is of varying dynamics other than money, which should be tackled courageously.
Mrs. Alhassan also addressed alleged rumor that she was voted based on sentiment and debunked claims that her ministerial appointment is compensation for her failed gubernatorial bid, stressing that there is no way the president would go against the APC. She was later asked to bow and go.
Others who were screened yesterday were Barr. Solomon Dalong (Plateau), Mrs. Kemi Adeosun (Ogun), Sen. Hadi Sirika (Katsina), and Barr. Adebayo Shittu (Ibadan)
The screening continues today.

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