Minister of State Petroleum, Ibe Kachikwu Wednesday disclosed that the Federal Executive Council (FEC) approved the procurement and installation of technology monitoring schemes and structures under Petroleum Equalisation Fund ( PEF) for total sum of N17 billion.to tract actual fuel supply and consumption in the country.
Kachikwu spoke to State House Correspondents at the Presidential Villla, Abuja after the weekly FEC meeting presided over by Acting President Yemi Osinbajo.
According to him, the automated fuel system management and censor network.will help the government keep proper data repository of consumption , destruction, data on all trucks that operate, total number of products received, what is sold out of filling stations saying it is going to be a collaborative system that would involve NNPC, DPR and PPPRA .
He added: “The narrative is that we have all struggled with this whole subsidy payment and how much is consumed in Nigeria, volumes of products moved out illegally and the whole impact on FAAC accounts.
“The President has given a very serious mandate that we ought to rein in on his process. The essence of what PEF is doing is that this will enable us track refined petroleum product movement from the point of LC (letter of credit) opening from the vessels that come into Nigeria, up until the point where there are discharged into tanks in Nigeria, and from the tanks ibro trucks in Nigeria, monitor the trucks till they deliver the products into the storage tanks for the filling stations and they are discharged and sold.
“So, that will produce a 100 percent wholistic monitoring of this production. For the first time we will be able to tell how much petroleum products we consume in this country.
“Because, there has been so much going on in terms of the movement of consumption numbers from thirty something million liters a day to 70 million liters to 18 million liters a day during the difficult times.
“And the challenge the president has “given me is to rein that in, let’s know what we consume in reality, let’s know where these products are going and this process will be able to track every truck. So, a typical truck will be licensed with a driver, with a transport company, so if a truck misses, you can find the transporter and the company that takes responsibility.
“So we expect this to be over a period of three years but we promise that within one year, the real effects of this will begin to show. Obviously you need time to train and to continue to improve the system.
“We hope that by the time we start doing the 2020 budget in 2019, we would have gotten to a point where woot or the losses that you are seeing are being tracked and substantially impact will be made in monies that come into the federation accounts.”
He also disclosed that FEC approved the revision of contract for the construction of NCMB’s headquarters in Yenagoa, which had been given out in 2015 initially for a contract sum of about N27 billion but now revised to contract sum of N42 billion.
“It is one of the dramatic skyline in Yenagoa and has gone quite substantially far. This reasons for this increase was largely due to foreign exchange variables determinant which was initially about N157 to a dollar but today it is N305 to a dollar and still counting.
“The whole idea is for contract to be completed. It is a 24 month contract and fairly far gone. We hope that once that is done, NCMB will stop paying rent in the series of buildings that it rented in Yenagoa.
“But most important, the whole glamour of the south south states during the Vice President visit to the Niger Delta with me and the minister of Niger Delta, was largely to see oil companies during foot hold in some of these south south states. The building is larger than what the NCMB needs and already talks are on with AGIP and a few of them who want to position their presence very effectively in some of these areas.
“If we continue at this pace of construction, Mr. President should be able to commission that building between the end of this year and early next year,” the minister stated.”