By our business correspondent
President Muhammadu Buhari, yesterday warned African Petroleum Producers Organization (APPO) that investment funds for the oil industry are fast drying up and emphasized the need for recapitalizing African Energy Investment Corporation (AEICORP).
Buhari, who spoke at Extraordinary Session of the Council of Ministers of APPO, in Abuja, lamented that the development was happening at a time Africa is discovering huge oil and gas without the required funds.
The President, who was represented at the occasion by Timipre Sylva, the Minister of State for Petroleum Resources, said with funds these reserves will remain in the ground, untapped and un-accessed, while the people of the continent go without energy.
“The importance of recapitalizing AEICORP cannot be over-emphasized for us in Africa. As you are aware, due to the global paradigm shift away from oil as energy sources, investment funds are fast drying up for the oil industry. This is happening at a time Africa is finding more and more oil and gas. Without the required funds, these reserves will remain in the ground, untapped and un-accessed, while our people go without energy.
“I need not remind you that Africa has over 600 million out of the 850 million people in the world who do not have access to modern energy. We need to exploit what we have to take our people out of energy poverty, and by extension economic poverty.I want to encourage our members Countries to make equity subscription to AEICORP in order to ensure consequential investment by Sovereign Wealth Funds, National Oil Companies or any other designated organizations of Existing Members and Non-members of APPO, African/International Private Banks, Financial Institutions, and African/International Private Investors” he said.
According to President Buhari, as a founding member of APPO, Nigeria, like many other member countries have not been pleased with the achievements of APPO, so far.
In his remarks, Timipre Sylva, Minister of State for Petroleum Resources, stated that for nearly 30 years, APPA, which was renamed African Petroleum Producers’ Organization (APPO) at the Abuja Council of Ministers Session in 2016 could not find its feet, necessitating Nigeria to once again champion the call for its reform.
He, however, noted that Nigeria has completed its assignment on the implementation of the reform which seeks to review the Mission, Vision and Strategic Objectives of APPO and develop a Strategic Implementation Plan with Key Performance Indicators (KPI).
