…It Will Open Up Industrialization, Kyari Assures
The Group Managing Director of NNPC, Mallam Mele Kolo Kyari, in company of the Group Executive Director, Gas and Power, Engr. Abdulkabir Ahmed, the Group General Manager of Group Public Affairs Division, Mallam Garbadeen Mohammad and other top management of NNPC, Thursday visited the Kaduna State Governor, Mallam Nasir El Rufai to sign a Memorandum of Understanding on Gas Utilization and Expansion.
Speaking during the event at the Sir Kashim Ibrahim House office of the governor, the GMD said the virtual gas project is very essential for industrialization and development of not only Kaduna State but the nation in general.
He also assured that the government is working on the gas pricing framework to make the product affordable and available to all Nigetians including the rural dwellers.
In a press briefing after the signing, the GMD justified government’s 20% stake in Dangote Refinery through NNPC, stating that it will boost energy sufficiency and security, adding that the return on investment is high as the cost can be recovered within three to four years especially considering the location of Dangote Refinery in the free trade export zone.
Kyari also said “it is an advantage for us in NNPC not to put our eggs in one basket”, citing example of Aramco and other National oil companies.
Speaking on the recently assented to Petroleum Industry Bill now Act, he said the archaic laws had been reviewed especially fiscal and regulatory framework which would create a favorable business environment and subsequently increase local and foreign direct investment.
He said the 3% for Host communities is a very good one and more than the 30% from revenue for the frontier exploration services.
The GMD explained further that the 3% approved to host communities is more than NDDC’s 30% for Frontier Exploration Services (FES) because it is a percentage of the operating cost and will be steady whether the companies make profit or not.
Kyari further clarified the 30% for FES is based on revenue from profit and that is not about northern Nigeria but the whole nation including the Niger Delta Basins, Dahomey Basins, Anambra Basins, as well as the Benue Trouph.
Also speaking, the Kaduna State Governor, His Excellency, Mallam Nasir El Rufai who was delighted at the occasion said gas utilization will boost industries in Kaduna such as Olam Farms, Peugeot Automobile and provide feedstock for power plants in Kaduna which will spring up development and create more jobs for the population especially the teeming youths.
The Governor also said that this will lead to reduction in crimes and banditry as the teeming youths will eventually be engaged.
The Deputy Governor, Dr. Hadiza Sabuwa Balarabe, in a vote of thanks, said that the MOU when implemented, would lead to human capital development and make Kaduna State greater.
She prayed for prosperity for the nation.
Highlights of the occasion was the signing of the memorandum of understanding between the NNPC and the Kaduna State Government.