The Department of Petroleum Resources (DPR) has assured Nigerians that the remittance of at least $1.03 billion to government’s account and an additional $600 million expected from oil and gas royalties and legacy debts wold be enough to avoid needing the $1.5 billion loans being expected from the World Bank.
According to the DPR, some revenue generated and remitted by the agency would prevent any further borrowing from the Bretton Woods institution.
The DPR collects oil and gas royalties, which represent the proportional value of oil and gas production and sales from oilfields, gas flare penalties imposed for gas flaring, concession rentals, paid for the grant of oil and gas acreages by exploration and production companies, and miscellaneous oil revenue which comprises statutory application fees, licence and permit fees and penalties.
Besides, Nigeria intends to be an exporter of refined products by 2022 going by the number of refineries coming on stream by that time.
The World Bank had been delaying the much-needed $1.5 billion loan sought by the government, because of concerns over reforms. The bank believes the country has not shown enough commitment towards achieving them.
The Bank had included the unification of the Naira exchange system and removal of fuel subsidy as some key reform requirements listed as conditions precedent to getting the facility.
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