FG’ll use extra income from rising oil prices on infrastructures -Buhari
President Muhammadu Buhari has disclosed that the Federal Government will judiciously use the extra income from the rising crude oil sales infrastructures and in the interest of the country.
According to the President, “Income accruing to the country from rising oil prices in the international market will be spent on infrastructural development”.
A statement by the Special Adviser to the President on Media and Publicity, Femi Adesina, also quoted Buhari as assuring the nation of his commitment to meet these objectives.
Receiving a delegation from the oil giant, the Eni, led by the Chief Upstream Officer, Mr Antonio Vella, the President said extra funds outside the provision of 2018 Budget “will be deployed to infrastructure projects like roads, rail, and power, for the good of our people, and for the development of the country.”
The 2018 Budget provisions had been predicated on $45 per barrel by the Executive, and the Senate had adjusted it to $47 per barrel. But prices have risen to $70 per barrel this week.
The statement reads in part, “President Buhari also appreciated Eni for its upcoming investments in the oil industry, which included rehabilitation of Port Harcourt refinery, and the building of a new one.
“In my first coming, all our refineries were working. Port Harcourt used to refine 60,000 barrels per day, and it was later upgraded to 100,000 barrels. Kaduna and Warri were also working optimally, and we used to satisfy the demand of the local market. We equally exported 100,000 barrels of refined petrol. Now, no refinery is performing up to 50%. It is a disgraceful thing,”
The leaders of the Eni delegation, Mr Antonio Vella, said his organization has presented a technical proposal to the NNPC to rehabilitate the Port Harcourt refinery, and also done a feasibility study on a new refinery of up to 150,000 barrels per day capacity.
Vella said, “Site selection has been completed, and 50 new graduates have already arrived in Italy for a training that will last seven months.
“ There are other upstream initiatives, and a deep water project, with estimated expenditure of $13 billion.”
The oil company also plans to double power generation capacity from its plant in Delta State from its present 500 MW to 1,000 MW, spending $750 million in the process
