BEVERLY HILLS, CA, November 21, (THEWILL) – The House of Representatives Thursday gave its joint Committees on Petroleum Resources (Upstream and Downstream), National Planning and Finance four weeks within which to investigate relevant government agencies over dwindling oil revenue in the country.
The resolution was taken following the adoption of a motion sponsored by Hon. Ben Nwankwo (PDP-Anambra) which was unanimously adopted.
Leading debate on the motion, Nwankwo observed that the near total dependence of Nigeria on oil as the major source of revenue has almost reduced it to a mono-product economy.
“This reliance on oil has made Nigeria’s economy not only fragile but also extremely vulnerable and under constant threats from even the slightest developments in the world oil market,” he said.
He said Nigeria’s crude oil market was under serious threat arising from the discovery of shale gas through hydraulic fracturing or fracking.
According to him, the widespread use of this process to produce oil and gas has led to a significant reduction in prices of domestic gas in the United States of America.
He noted that the severity of this situation was underscored by the recent admission by the Organisation of Petroleum Exporting Countries (OPEC) at its meeting in Vienna.
The lawmaker maintained that fracking had made it possible for USA to produce large volumes of shale gas as a source of energy, which has reduced its import of crude from Nigeria from 11 per cent to five per cent.
According to Nwankwo, Nigeria’s Liquefied Natural Gas (NLNG) exports to the United States have substantially declined since 2011.
He stressed that dwindling revenue from crude oil was threatening the implementation of the 2013 budget, and that it could get worse as more countries and corporations invest in the production of energy through fracking.
Supporting the motion, Chairman, Committee on Sports, Hon. Godfrey Gaiya ( PDP-Kaduna), said this motion was a wake up call for the National Assembly to do things that would put Nigeria at par with other countries.
Also supporting the motion, Hon. Forte Dike (PDP-Anambra) said the motion was a step in the right direction as it would help in making the country diversify its economy.
By Saint Mugaga, Abuja
