Nigeria may well be prepared to fund the 2019 budget.

The Minister of state for petroleum resources, Ibe Kachikwu, has said that the federal government has generated over $2 billion from the renewal of oil block licences.

The former group managing director the Nigerian National Petroleum Corporation (NNPC) said the funds will be used to implement the 2019 budget.

“We have actually asked for early renewals, because we needed to get money out of it to help finance the budget and from that process, we have actually gotten about $2 billion,” Kachikwu told TheGuardian.

The minister said his ministry deliberately put a policy in place to hasten renewals, so enough funds could be put together for the budget.

Also Read: #BounceRewind2018: Top 4 Issues That Shaped Nigeria’s Economy In 2018

“I put a policy of early renewals in place so that even blocks that are not due for renewal before 2019 are being renewed right now,” he said.

According to him, only about 30 of the fields, expected to add about 300 million barrels of crude were granted licenses by the Department of Petroleum Resources, DPR.

Kachikwu added that about 40 others, as well as mega fields suggested to President Muhammadu Buhari, who doubles as the minister of petroleum, were awaiting approval.

He said the ministry is currently analysing the renewal applications lodged for the 2019 process to ensure best use of Nigeria’s oil field.

Don't forget to share this story with your friends.

Also Watch: