Date Published: 09/07/11

FEC approves payment of $43.3m to OPEC Fund

The Federal Executive Council (FEC) on Wednesday, approved the payment of 43.3 million dollars (N6.4 Billion) to the OPEC Fund for International Development (OPID).

Mr Labaran Maku, the Minister of Information, disclosed this while briefing State House correspondents after the Federal Executive Council meeting presided over by President Goodluck Jonathan.

Maku said the money was the balance of 177.7 million dollars which Nigeria promised to contribute to OPID at its inception in Vienna in 1976.

The fund, set up by the international oil cartel of which Nigeria is a member, is meant to assist poor oil consuming nations that are not members of OPEC.

Labaran said the council gave approval for the payment of the money following a memo presented by the Ministry of Finance on the need for the country to redeem the pledge made to OPEC.

He explained that the payment of the money would boost the nation’s international influence and enhance Nigeria’s foreign policy.

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``Nigeria gave a promise to contribute 177.7 million dollars to the fund. Over this period, the country has been making its own contributions.

``But early this year there was a meeting of the fund in Vienna and there was a need for all member countries to complete their contributions.

``Most of the countries that are really benefiting from the fund are Latin America, Asia and African countries.

``It is a projection of our foreign policy to ensure that this money is paid because it leverages us, increases our capacity and also stabilises our own market.

``I think it is important we pay this money and it should be seen in fulfilment of our country’s major foreign policy goals which is to assist sister South-South developing countries as a member of OPEC,’’ he said.

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Maku said the council also reviewed the report of Presidential Project Assessment Committee on the power sector which was presented by the Committee Chairman and former FCT Minister, Mr Ibrahim Bunu.

It will be recalled that the committee was inaugurated by Jonathan as Acting President on May 5, 2010 to investigate reports of abandoned projects nationwide.

The minister said Bunu gave the council a run-down of their tour of power projects and called on the government to ensure that power projects were delivered in good time.

He said the committee recommended that the government should take adequate measure to address the issue of shortage of gas supply to various power projects.

The minister said that from the report of the committee, the National Integrated Power Project, which would give 4,000 MW of electricity to the national grid, was more than 80 per cent completed. (NAN)