Concerns over rise in fuel consumption

“Concerns over rise in fuel consumption” A former Minister of State for Petroleum Resources, Odein Ajumogobia, yesterday raised alarm over increasing rate of oil and gas consumption in the country, saying that pragmatic action on the part of government is required to reverse lack of development in the upstream sector.

Nigerian Bureau of Statistics (NBS) in its latest release put total fuel consumption in the second quarter of 2018 at 53 million litres per day, this the former minister said government needed to urgently reverse as Nigeria might go the way of Indonesia, which was a net exporter turned into net importer of crude oil.

Speaking in Lagos during a panel session at the ongoing annual conference of the International Society of Petroleum Engineers with the topic, ‘Emerging Economic Diversification Era in Nigeria:

Challenges, Policy Frameworks and Prospects for the Oil and Gas Industry’, Ajumogobia said: “Our long honeymoon is over. If we continue the way we are going, Nigeria might become a net importer of crude oil. With its population growing at 3.6 percent per year, if nothing is done about reserves replacement and production, we will soon go the way of Indonesia.”

Wumi Iledare, a professor of Petroleum Economics and Policy Research at University of Port Harcourt, said “If we have to diversify, the educational system needs attention. If the educational system collapses, there is no hope for diversification. We need human capacity to develop the oil and gas assets that Nigeria is endowed with.”

Ademola Adeyemi-Bero, chief executive officer and managing director at First Exploration and Production Development Company Limited stated that Nigeria can easily diversify into agriculture because of its multiple value chain developments and the fact that these developments will rob-off on other sectors of the economy.

“Other areas are the service sector, manufacturing, unlocking the infrastructure, which will have huge impact on employment and boost household spending.

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“To move from a rental economy to one that is more productive, Nigeria needs disciplined leadership. You must invest; put money aside for the rainy day. Nigeria and Norway started out at the same production capacity of 2.4 million barrels, decades ago, but Norway today has a sovereign wealth fund of $1 trillion and Nigeria struggled to save $1.5 billion” Austin Avuru, managing director and CEO at Seplat Petroleum Development Plc, said.

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