The Federal Government said that it has saved about N1.4 trillion that would have been paid as subsidy to oil marketers as a result of the successful deregulation of the downstream oil and gas sector and also expects the nation’s refineries to come on stream before the end of 2017, Vanguard reports.
The Vice-President, Prof. Yemi Osinbajo, disclosed this while speaking at the Lagos Chamber of Commerce and Industry (LCCI) 2016 Presidential Policy Dialogue Session, in Lagos. He explained that the successful deregulation of the downstream oil and gas sector has resulted in conservation of budget resources and reduction in demand for Foreign Exchange (FX). He said that the action has further reduced the need to import petrol, which was also being smuggled to the neighbouring countries due to previous price differentials.
He also noted that most of the refineries in the country were expected to resume operations in their full capacity before the end of 2017, having set a medium to long term strategy in motion to overhaul and sort them out. He said “Aside waiting for the Dangote refinery, which is 50,000 to 60,000 barrels, we also intend to fix the existing refineries. Hopefully, we expect that by the end of 2017, most of the refineries will be functioning to some reasonable capacity.”