14 February 2018

Nigeria: Kachikwu Allays Fear of Debt Over Egina Fpso Project

The Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has allayed fear of debt over the Egina Floating Production Storage Offloading (FPSO) project.He gave the assurance yesterday in Lagos during the tour of the project.

Kachikwu stated that the country would not run into debts as alleged, adding that the project is largely funded by third party investments.His explanation followed the fear raised in December 2017 by the Legislative Investigation of Local Content Elements and Cost Variations relating to Egina and other projects.

The motion, sponsored by Senator Solomon Adeola (Lagos West), had raised the alarm.The minister said: "There is no way the country could run into debts at the end of the project's lifespan. There are all kinds of earnings involved, including royalties and taxes, and we need to look into these areas and see what exactly would come to the Federal Government. May be we could have done better in terms of negotiation."

He said the Federal Government was working hard to ensure that projects that are as huge as Egina come on stream as soon as possible."We are going to work hard to push other companies to reach proper terms. Job is still ongoing on the Egina project and we are going to ensure that some of the skills acquired by the workers fit into the country's development.

"The FPSO is a $16 billion investment, outside the Bonga South West and Zabazaba projects. There is still so much to be done to get the policy thrust that would drive investment in the country's upstream sector.

"We have passed the gas and petroleum policy bill and we are working on the fiscal policy. In terms of legislating the policies, the National Assembly is working on the fiscal terms and host community's aspect of the bill," he said.

The Executive Secretary, Nigerian Content Development and Monitoring Board (NCDMB), Simbi Wabote, who lauded the project as a landmark achievement in the country's local content journey, said: "One of the concerns in the country's local content policy has been what would happen to the capacity created through the Egina FPSO project."If the Egina project did not come to stay, there would not have been these numerous achievements today."


Most African Children Without Birth Certificates Are Nigerians

For every 10 Nigerian children that are at least five years old, there are no records about the birth of seven. Even… Read more »

See What Everyone is Watching

Copyright © 2018 The Guardian. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.