Nigeria incurred subsidies for petrol and kerosene estimated at $65 billion between 2011 and 2015, Minister of State for Petroleum Resources Dr. Ibe Kachikwu revealed.
The minister said this in a presentation at a 2-day African modular refinery forum, organized by the Modular Refiners Association of Nigeria (MRAN) in partnership with the Department of Petroleum Resources (DPR). He was represented by the Deputy Director, Engineering and Standards of the DPR, Engr. Olumide Adeleke.
Kachikwu said the amount spent excludes $6 billion which was lost to vandalism during the period under review. Kachikwu decried the fact that Nigeria was still importing 92% of the fuel daily.
The minister said that had the subsidy bill been properly channeled, it could have financed the entire investment required to realize the Vision 20:2020 target of 50 per cent national refining capacity of crude oil produced in Nigeria, stimulated employment and economic growth and ensure significant reduction in the federation foreign exchange expenditure for petrol imports.
Despite these challenges the minister said that his objective remains to attain 50 per cent domestic refining capacity by 4th quarter of 2018 and 100 per cent domestic refining capacity by 4th quarter of 2019.