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2020 Budget: FG earmarks N257m for pipeline rehab, oil database

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By Michael Eboh

The Federal Government has earmarked N257.95 million budget for the Nigerian oil and gas pipeline infrastructure rebirth programme, coordination of public service reform as well as the development and management of an oil and gas database for the country.

President Buhari presenting the 2020 Budget proposal to the National Assembly

This was contained in the budget of the Ministry of Petroleum Resources in the 2020 Appropriation Proposal presented by President Muhammadu Buhari to the National Assembly.

Specifically, the petroleum ministry planned to spend N127.950 million for the development and management of the ministry’s oil and gas database; N30 million for coordination of public service reform to; and N100 for the Nigerian oil and gas pipeline infrastructure rebirth.

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In addition, the ministry budgeted N151.36 million for legal services and litigation; N75.668 million for the implementation of the new gas policy; N113.5 million, N87.02 million and N113.5 million for oil and gas sector reforms, implementation of seven big wins, and automation of Ministry of Petroleum Resources operations e-library and annual subscription respectively.

The Federal Government is also proposing N207.33 million for the development of critical managerial competencies including International Public Sector Accounting Standard (IPSAS), for the oil and gas sector within the relevant MDAS, legislature and FAAC; and N71.885 million for the national oil and gas production economic model.

“A total of N1.452 billion was presented for 2020 Appropriation. There are nine projects rolled over from 2019 and four new ones. For personnel, a total of N690.160 million is presented for 2020 Appropriation, while for overhead, a total of N736.255 million is presented for appropriation. Some overhead items are considered very important so, the Ministry desires adjustment as presented,” the ministry stated.

The ministry disclosed that in the 2020 budget, two of its parastatals, the Department of Petroleum Resources, DPR and the Petroleum Products Pricing Regulatory Agency, PPPRA, had exited from capital and overhead costs allocation with effect from 2020.

The ministry has 12 departments strategically poised to oversee the sector, comprising eight parastatals/ agencies under the supervision of the ministry.

The ministry explained that four of the parastatals are not funded under the Federal Government Appropriation while the remaining four are partially or fully funded.

The petroleum ministry, in its analysis of its budget for 2020, said it has aligned with the Next Level agenda of President Muhammadu Buhari, said it would eradicate smuggling of Premium Motor Spirit, PMS, across Nigerian borders; complete the Nigerian Gas Flare Commercialization Programme and increase Nigeria’s crude oil production to three million barrels per day, BPD.

The ministry added that it plans to reduce the cost of crude oil extraction by at least five per cent; aggressively promote passage of the Petroleum Industry Bill; promote passage of Deep Offshore and Inland Basin Production Sharing Contracts Amendment and work with private sector operators to aggressively increase domestic refining capacity.

It is also targeting active collaborate with the private sector to create large numbers of well-paying jobs for the Nigerian youths and implement a strategy towards the realisation of the president’s promise to take 100 million Nigerians out of poverty in the next 10 years.


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