As the global oil market price continues to crash, former Vice President Atiku Abubakar has canvassed the setting up of a strategic crude oil reserve, with massive storage capacity that can hold at least a month’s worth of OPEC production capacity.
Atiku stated this in a statement while reacting to the fall in price of global oil market due to sudden, massive and unexpected drop in worldwide demand for crude oil because of the corona virus pandemic.
Atiku, who was presidential candidate of the Peoples Democratic Party (PDP) in 2019, said it is time for Nigeria to protect her economy from being tossed to and fro by circumstances beyond her control.
He added that Nigeria must assert her sovereignty, by exerting more influence over the global trade in crude oil, and other features.
”I believe that the time is right for Nigeria to build a strategic crude oil reserve, with massive storage capacity that can hold at least a month’s worth of our OPEC production capacity.
“If we build such an infrastructure, we will not have to sell our crude at a production loss. We will be in a position to stockpile the product in our reserve until such a time as prices improve.
“Indeed, other nations take such measures to protect their economy. North American and European nations have such internal controls to protect almost every sector of their economy – from agriculture, automobile, and even intellectual property. Nigeria cannot be left behind. We must be in business for the best interest of our economy.
“I would also strongly recommend that we discuss with our partners in the Organisation of Petrol Exporting Countries, and obtain a concession, whereby we can defer our daily quota, such that when we undersell, due to a crash in the price of crude oil, we can oversell when the prices stabilize, subject to the condition that we balance out our quota,” the former Vice President said.
He lamented that Nigeria’s oil industry remains more susceptible to outside influences, than to internal control, stressing that the measure he advocates can flip that, and make the oil industry more stable, even when there is global instability.
“This will translate to greater economic independence on our part,” he noted.
