Nigerian news All categories All tags
N17bn tracking devices approved by FG to monitor fuel distribution

N17bn tracking devices approved by FG to monitor fuel distribution

- Funds for the installation of tracking devices to monitor fuel distribution have been approved by the federal government

- The funds approved for the tracking devices amount to N17 billion

- The tracking devices will produce a 100 percent holistic monitoring of petroleum products

Seventeen billion naira has been approved by the federal government for the installation of tracking devices to monitor the movement of refined petroleum products across the country.

The Cable reports that the minister of state for petroleum resources, Ibe Kachikwu, disclosed this to newsmen in Abuja at the end of the federal executive council meeting on Wednesday, August 8.

Legit.ng gathers that Kachikwu, who disclosed that the project would be carried out under the Petroleum Equalisation Fund (PEF), stated that the installation of the devices would last for three years.

He said: “The narrative is that we have all struggled with this whole subsidy payment and how much is consumed in Nigeria, volumes of products moved out illegally and the whole impact on federation accounts allocation committee.

READ ALSO: NiMet predicts thunderstorms, rains for Thursday, August 9

“The essence of what PEF is doing is that this will enable us to track refined petroleum products’ movement from the point of the LC (Letter of Credit) opening from the vessels that come into Nigeria, up until the point where they are discharged into tanks in Nigeria; and from the tanks into trucks in Nigeria.

“We will also monitor the trucks till they deliver the products into the storage tanks for the filling stations and they are discharged and sold. So, that will produce a 100% holistic monitoring of these products.”

The minister said that it would allow the government to ascertain the actual consumption of petroleum products by Nigerians.

Kachikwu said: “There has been so much going on in terms of the movement of consumption numbers from over 30 million litres a day to 70 million litres to 80 million litres a day during the difficult times. And the challenge the president has given me is to rein that in. Let us know what we consume in reality; let us know where these products are going and this process will be able to track every truck.

“So, a typical truck will be licensed with a driver, with a transport company; so, if a truck misses, you can find the transporter and the company that takes responsibility. We expect this to be over a period of three years but we promise that within one year, the real effects of this will begin to show.”

PAY ATTENTION: Install our latest app for Android, read best news on Nigeria’s #1 news app

Meanwhile, Legit.ng previously reported that the minister of state for petroleum resources, Ibe Kachikwu, faulted reports credited to him that the country had incurred a total of N1.4 trillion deficit due to importation of petrol.

Kachikwu made this known in a statement issued on Monday, April 9, in Abuja by Idang Alibi, the director, press and public relations in the ministry.

Price of petrol crashes in Nigeria - on Legit.ng TV

Subscribe to watch new videos

Source: Legit.ng

Mailfire view pixel