The Vice President, Professor Yemi Osinbajo, has called for a review of the Nigerian Ports Authority (NPA) dues on the Premium Motor Spirit (PMS) also known as petrol to reduce pressure on the price of the product in the country.
Osinbajo made the call at the Valuechain Magazine 2021 fourth annual lecture and awards, in Abuja, on Monday.
The theme of the Lecture is “Enhancing effective synergy between oil and gas and maritime sectors for greater value creation.’’
Represented by the Minister of State for Petroleum Resources, Chief Timipre Sylva, he said there was a need for a review of dues at the ports for ease of doing business.
“You will agree with me that the maritime sector remains pivotal to the oil and gas sector in our country.
“The issues bordering around regulation 2014 has been brought to my notice, the implementation of regulation, especially this time the country is coming out of the global oil crisis.
“I, therefore, urge that you keep the implementation in view to a more suitable time for our economy.
“In the same vain, I call on the NAP to review as it relates to the price of the PMS, Mr President has given his approval for a downward review, this, we believe will further rejuvenate the pressure in the pump price of the white product, ’Osinbajo said.
He noted that insecurity was one major challenge with the maritime operations and commended NIMASA for facilities in place to check the situation.
“I am incredibly happy with the facilities NIMASA have in place to tackle insecurity in the maritime sector because if you want to really talk about reducing the cost of production in the oil and gas sector, you must touch security.
“Security is one of the main cost drivers in the industry and that is what we have been discussing. So, if they are going to tackle security in the maritime sector, they must work with the oil and gas sector.
“This is because today the oil and gas sector is bedeviled by a lot of security issues which have brought up the cost of production to levels that are too high,” Osinbajo added.
He commended the organisers for the lecture, noting that, the theme of the event was apt as there was the need for maritime and oil and gas sector to synergise for economic growth and value addition in the country.
In his keynote address, the Group managing Director, the Nigerian National petroleum Corporation (NNPC), Malam Mele Kyari, said the maritime and the oil and gas sector had many things in common.
Represented by the NNPC Chief Operating Officer, Gas and Power, Mr Yusuf Usman, said that available statistics showed that there were over 20,000 ships working for the oil and gas sector in the Nigerian waters with over 600 million dollars in service.
“There are over 20,000 ships working for the oil and gas in the Nigerian waters with an annual expenditure of over 600 million dollars in the upstream sector.
“The oil sector spend three billion dollars on marine vessels between 2014 and 2018 of which 73 percent was spent on crude boat, security and power supply intervention.
“This reflects the huge potential in the sector as we aspire to grow our production to three million barrels per day. Without doubt, the potential of the Nigeria blue economy is huge and remain largely untapped for the benefit of the country,” he added.
Earlier in his welcome remark, the Publisher and Editor in Chief of Valuechain Magazine, Musa Bashir Usman, noted that maritime had always been of strategic importance to the oil and gas industry.
“The importance of the two sectors is attested to the value they add to the Nigerian economy.
“The maritime as well as the oil and gas sector have greater potential contribution to Nigeria’s Gross Domestic Product, Usman added.
He said that the lecture was expected to provide answers to some major problems that had been affecting the sector.
