Tags: , , , , ,

FG to generate $2b from oil, gas lease licence renewal


Get real time updates directly on you device, subscribe now.

The Minister of State for Resources, Dr Ibe , said that the Federal Government is targeting about two billion dollars from the and licences renewal.

Kachikwu disclosed this while fielding questions from newsmen at the just concluded International Petroleum summit, on Wednesday in Abuja.

He said, “We projected for the licences renewal probably around two billion dollars; right now, we are at about 1.2 billion dollars, 1.3 billion dollars.

“I don’t have the number of the people renewing but I’m aware it should be around 20 to

- FG to generate $2b from oil, gas lease licence renewalHe said that although most of the licences were due for renewal between 2019 and 2020, the ministry decided to start early for some policy reasons.

According to him, the law allows that one can renew licence six months before expiration.

“We decided to start the process early to generate some revenue for government.

“We also look at the terms under which they are renewed; that is all what we are doing,” he said.

Kachikwu noted that early renewal was necessary for many to have opportunity to access money from the banks for investment.

He added that companies that had less than six months for their licences to expire would never have access to fund in any financial institution.

“So, you need a long span to be able to get all these and that is what we are trying to do,” he said.

He noted that terms under which the licences were being renewed were reviewed adding that a lot of revenues were being generated.

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More