Yar`Adua Sets up National Energy Council – Says Nigeria`s Woes Caused by Abysmal Power Situation

1 Comment » September 5th, 2007 posted by // Categories: Important Documents




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Nigeria’s woes caused by PHCN – Yar’Adua – Says Nigeria needs $9bn yearly on infrastructure

Gbola Subair, Abuja, With Agency Reports – 06.09.2007

PRESIDENT Umaru Yar’Adua on Wednesday expressed concern over the abysmal electric power situation in the country. While inaugurating the National Energy Council in Abuja, President Yar’Adua said the situation had stunted the nation’s economic growth, crippled its industries and generally made life difficult for the nation’s teeming populace.

“The provision of petroleum products, including the all-important petrol, diesel and fuel oil, are all dependent on massive importation from other countries,” he said.

“Nigeria, a leading oil and gas nation, should not only be able to meet its entire demand but also meet that of other countries in our immediate region.

“It stands to reason that this situation cannot and should not be allowed to continue any longer,” the president said.
The council’s terms of reference include advising the president continuously on long term and broad national objectives regarding the oil and gas industry.

It is also to review and advise the president on strategic policy directions for the oil and gas industry, including periodic review of National Oil and Gas Policy, Energy Master Plan, Strategic National Investments in the sector, and long term projects.

The council, which was approved last week by the Federal Executive Council, is headed by the president and is expected to restructure the oil and gas industry, involving the reorganisation of all the policy, regulatory, operational and commercial organs of the industry.

Inaugurating the council, the president said it would meet the demands of the changing nature and scope of the industry and international best practices.

He said that government would soon inaugurate a committee to ensure the implementation of the new National Oil and Gas Policy as contained in the Oil and Gas Reforms and Implementation Committee report.

The committee is to supervise the emergence of a new institutional framework to govern the operations of the industry, including the emergence of a new National Oil Company, new regulatory bodies, and a new national directorate, for more effective policy formulation for the industry, he said.

The president said that the new energy policy was the product of a painstaking assessment, review and re- examination of all relevant aspects of the country’s petroleum industry.

“Our country has had, for too long, a very narrow focus in the management and utilisation of its hydrocarbon resources. “The enormous potential of our oil and gas industry for generating economic growth, the provision of mass employment and for providing a strong foundation for the transformation of our industrial and agricultural sectors has never really been prioritised,” he said.

The president said that in spite of the huge revenue earnings from oil, the contributions of the petroleum sector to the Gross Domestic Product of the country remained relatively unimpressive.

“There is no better evidence of our narrow focus for the oil and gas industry than the fortunes, or rather the misfortune, of our country’s power sector,” he noted.

According to President Yar’Adua, “our story, unfortunately, is that of a country with legendary gas reserves that remains afflicted with an abysmal electric power situation which has stunted our economic growth, crippled our industries, and generally made life difficult for our teeming populace.”

Members of the committee include the three ministers of state for energy, ministers of finance, justice, national planning as well as the national security adviser and the honorary strategic adviser on energy.

The president’s nominees to the council are former FCT Minister, Mallam Nasir el-Rufai; internationally-acclaimed energy expert, Professor Barth Nnaji, Director-General of the Nigeria Economic Summit Group, Mr. Mansur Ahmed and Mr. Tunji Solarin.

Also, Nigeria will need about $9 billion annually to develop the infrastructural facilities in the country, President Yar’Adua has disclosed.

The President, declaring open the 13th Nigerian Economic Summit on Wednesday in Abuja, disclosed that one of the greatest problems facing the country was that of poor infrastructure.

As a result, the president said that many investors are running away from investing in the country as a result of high cost of doing business.

To redress the situation, President Yar’Adua said the country needed about $9 billion annually to put necessary infrastructure in place.

Because of the enormous resources needed for infrastructure, the president called on the private sector to give a helping hand. “Except in the communication sector where we have many private sector participants, the infrastructural sector is not that lucky, the private sector must come in to achieve the desired objectives’ the president said.

He said the government, on its own, would improve the legal and business environment for enduring private sector investment.

Apart from this, President Yar’Adua said the government would maintain macro-economic stability and promote competitiveness that would herald the diversification of the economy.

 

NEW NIGERIAN

Thursday, September 6, 2007

Energy Council inaugurated
 

President Umaru Musa Yar’Adua yesterday inaugurated the National Energy Council headed by him to drive new policies in the energy sector.

The council, which was approved last week by the Federal Executive Council, is expected to restructure the oil and gas industry, involving the reorganization of all the policy, regulatory, operational and commercial organs of the industry.

Inaugurating the council, Yar’Adua said it would meet with the demands of the changing nature and scope of the industry to correspond with international best practices.

He said government would soon inaugurate a committee to ensure the implementation of the new National Oil and Gas Policy as contained in the Oil and Gas Reforms and Implementation Committee report.

The committee is to supervise the emergence of a new institutional framework to govern the operations of the industry, including the emergence of a new National Oil Company, new regulatory bodies, and a new National Directorate for more effective policy formulation for the industry, he said.

The president said that the new energy policy was the product of a painstaking assessment, review and re- examination of all relevant aspects of the country’s petroleum industry.

“Our country has had, for too long, a very narrow focus in the management and utilisation of its hydrocarbon resources.

“The enormous potentials of our oil and gas industry for generating economic growth, the provision of mass employment and for providing a strong foundation for the transformation of our industrial and agricultural sectors has never really been prioritised,” he said.

The president said that in spite of the huge revenue earnings from oil, the contributions of the petroleum sector to the country’s Gross Domestic Product remained relatively unimpressive.

“There is no better evidence of our narrow focus for the oil and gas industry than the fortunes, or rather the misfortune, of our country’s power sector.

“Our story, unfortunately, is that of a country with legendary gas reserves that remains afflicted with an abysmal electric power situation which has stunted our economic growth, crippled our industries, and generally made life difficult for our teeming populace,” Yar’Adua said.

He regretted that the situation was not any better at the other aspects of the industry.

“The provision of petroleum products, including the all-important petrol, diesel and fuel oil, are all dependent on massive importation from other countries,” he said.

“Nigeria, a leading oil and gas nation, should not only be able to meet its entire demand but also meet that of other countries in our immediate region.

“It stands to reason that this situation cannot and should not be allowed to continue any longer,” the president said.

The council’s terms of reference include advising the president continuously on long term and broad national objectives regarding the oil and gas industry.

It is also to review and advise the president on strategic policy directions for the oil and gas industry; including periodic review of National Oil and Gas Policy, Energy Master Plan, Strategic National Investments in the sector, and long term projects, among others.

Members of the committee include the three ministers of state for energy, ministers of finance, justice, national planning as well as the national security adviser and the honorary strategic adviser on energy.

The president’s nominees to the council are former FCT Minister, Malam Nasir el-Rufai, internationally-acclaimed energy expert, Prof. Barth Nnaji, Director-General of the Nigeria Economic Summit Group, Mr Mansur Ahmed and Mr Tunji Solarin.

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One Response to “Yar`Adua Sets up National Energy Council – Says Nigeria`s Woes Caused by Abysmal Power Situation”

  1. summadom says:

    I love the members of the energy team, and am certainly glad to see Rufai back. Like the electoral reform team, it appears Y’Adua has put this council together with an eye on competence. Let’s hope they get going soon.

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