FG Earmarks N17 Billion For Installation Of Technology Monitoring Schemes
The Federal Executive Council on Wednesday approved the sum of N17 billion for the installation of technology monitoring schemes and structures under Petroleum Equalization Fund (PEF).
Minister of State Petroleum Resources Dr Ibe Kachikwu disclosed this while briefing State House Correspondents on the outcome of this week’s cabinet meeting presided over by Acting President Yemi Osinbajo.
His words: “The scheme is for the automated fuel management system and censor network and the narrative to this is, we have all struggled with this subsidy payments and how much fuel is consumed in Nigeria, what volume of products are moving out illegally, etc. And the whole impact of Federal Accounts Allocations Committee accounts, Federation money and all that.
“The President had 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 into 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 holistic 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 litres a day to 70 million litres to 18 million litres a day during the difficult times.
“The challenge the President has given me is to rain 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 our petroleum products are being tracked and substantially impact will be made in monies that come into the federation accounts.
“It will help us keep proper data repository of consumption in this country, destruction, data on all trucks that operate, total number of products received, what is sold out of filling stations and it is going to be a collaborative system that involves NNPC, DPR and PPPRA but situate quite frankly in PEF.