FG spent N5trn in 5 yrs on oil subsidy- PPPRA

BY EMMAN OVUAKPORIE & TORDUE SALEM
THE Federal Government in the last five years expended over N5 trillion on oil subsidy to help cushion the effect of  high cost of transportation in the country.

Executive Secretary of Petroleum Products Pricing Regulatory Agency, PPPRA, Engr. Godwin Egbuje who was represented by Mr Agbaje Olasupo of the agency made this disclosure at a workshop tagged “Budget Workshop on of the Committee on Gas Resources” at the National Assembly Complex, Wednesday.

Egbuje explained that the Federal Government spent over N5 trillion to cushion the effect of the high cost of transportation in the country though part of the money could have been channelled elsewhere if the gas sector had got to its peak.

Also, Chairman of the House Committee on Gas Resources, Igo Aguma said all attention was being focussed on building of power plants but the infrastructure required to service the plants were being neglected.

He said: “This neglect has made it difficult to capture the $4 billion needed to put all the service infrsastructure in the 2011 budget and to do that now would be very difficult at this stage.”

Group Managing Director of NNPC, Engr. Austen Oniwon who was represented by the Executive Director, Gas Dr David Ige in a paper entitled: “Overview of the Gas Agenda said, the key objectives of the Gas Master plan included leverage the multiplier effect of natural gas for economic growth-gas to power, position Nigeria as regional hub for gas based industries –fertilizer, methanol, petrochemicals.

Consolidate Nigeria ’s position in high value export markets –LNG, regional export pipeline and ensure the the trans-generational benefit of the natural gas resource.

He explained that once the gas masterplan becomes realistic the the power sector could get as much as 500 million cubic feet gas daily to power the sector and by 2015 the West alone could get as much as 2.5million cubic feet gas daily.