Nigeria can no longer fund oil industry

monjola sotubo

December 18, 2015 1:56 PM

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu has said that Nigeria no longer has the resources to fund the oil and gas industry.

Ibe kachikwu, MD, NNPC

The Minister of State for Petroleum Resources, Dr Ibe Kachikwu has said that Nigeria no longer has the resources to fund the oil and gas industry.

Kachikwu made the disclosure on Thursday, December 17, 2015, during a town hall meeting in Abuja.

“Financing is going to be a key component of our goal, because new models of financing would have to emerge. The country does not have the sort of resources to continue to fund the oil industry,” the minister said.

“As we go upstream, we are going to begin to see a lot of innovative financing mechanism to provide funding for the oil industry. My dream, if I achieve it, is that by the end of 2016, we would completely exit cash calls and be able to find ways to help support our business and get a lot more autonomy in terms of running the industry and report, basically, profit to the Federal Government,” he added.

He also announced at the meeting that the Nigerian National Petroleum Corporation (NNPC) would soon be divided into four separate companies.

Kachikwu is also serving as the Group Managing Director of the NNPC.

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