The Ministry of Petroleum Resources is facing criticism for presenting a budget of N9,641,154,830.00, which is deemed insufficient to harness the opportunities presented by the recently enacted Petroleum Industry Act (PIA). The National Assembly’s joint relevant Committee expressed concerns on Monday, emphasizing that the ministry should elaborate on challenges limiting its estimated revenue proposals. The budget, they argue, should not only cover investment opportunities under the PIA but also support the exploration of new oil and gas fields.
The Chairman of the House of Representatives committee on Petroleum Upstream and co-chairman of the joint committee highlighted the legislature’s responsibility to scrutinize and adjust budget proposals, regardless of the initial figures presented by the executive. He questioned the adequacy of the ministry’s budget, especially when other government agencies propose budgets in trillions.
The co-chairman insisted that the Ministry of Petroleum Resources must revise its 2024 budget estimates to provide a more detailed presentation for the joint committee’s review. The lawmakers raised concerns during the budget defense exercise with the Minister of State for Petroleum Resources, Senator Heineken Lokpobiri, and Minister of State for Gas Resources, Ekporikpo Ekpo.
Senator Jarigbe Agom, the Senate Committee Chairman on Gas Resources, expressed dissatisfaction with the budget, citing issues of underfunding. He specifically mentioned that the allocated N5.8 billion for the Compressed Natural Gas (CNG) bus project is insufficient to provide nationwide support, especially after the removal of fuel subsidies by the Federal Government. Senator Jarigbe highlighted the need for additional funding, emphasizing that the Presidential Initiative on CNG is seeking external support through fundraising for the project’s successful implementation.
