Kachikwu Says Fuel Subsidy Stoppage Has Saved $15.4bn

Nigeria has saved $15.4bn as a result of the elimination of subsidy on petroleum products since May this year, the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has said.

He disclosed this while hosting members of the House of Representatives Committee on Petroleum (Downstream) at the ministry’s headquarters in Abuja on Tuesday.

The lawmakers were at the ministry as part of their oversight functions.

Kachikwu, who was represented by the Permanent Secretary, Dr. Jemila Su’ara, also thanked the National Assembly for supporting the ministry and its agencies when the price modulation template was introduced in May.

Outlining the achievements recorded under his stewardship, Kachikwu said Nigeria was able to sign Memoranda of Understandings worth about $80bn during his recent trips to China and India; partial resuscitation of the Port Harcourt, Warri and Kaduna refineries; repair of products’ pipelines; and the resuscitation of supply of products from Atlas Cove-Mosimi-Ibadan-Ilorin after a six-year lull.

Others, according to an official statement, include improved crude oil supply to Warri and Kaduna refineries and savings of $15.4bn for the Federal Government as a result of the elimination of subsidy payments for petroleum products.