Allow illegal refineries to operate – Stakeholders
urge FG
By BusinessNews Staff on June 30, 2015
Stakeholders in the Nigerian oil and gas industry
have urged the President Muhammadu Buhari-led
administration to encourage more private sector
players in the setting up and operation of new
refineries across the country.
As part of the move, they asked the government to
consider allowing some illegal refineries to start
operating legally after they might have met global
standards.
The stakeholders said this at a quarterly round-table
programme organised by the Nigerian NewsDirect
newspaper with the theme, ‘Setting agenda for the
new government on private refineries, power supply,
indigenous participation and financing.’
Government’s encouragement in this regard, they
noted, would drive investment in private refineries in
the country, while leading to refining of crude oil
locally and guaranteeing the availability of refined
products.
The Joint Military Task Force in the Niger Delta,
Operation Pulo Shield, recently stated that it raided
illegal distillation camps where it destroyed illegal
refineries.
However, stakeholders who gathered at the forum
said instead of the government destroying those
refineries, it should rather provide an enabling
environment that would encourage more investment
in local refineries.
A former Commissioner for Finance, Osun State, Dr.
Wale Bolorunduro, who was the guest speaker at the
programme, said it was amazing that security
agencies were still destroying illegal refineries in the
country.
He said instead of destroying the refineries, the
government should look at how the owners could be
engaged for the benefit of the country.
Bolorunduro said, “I agree that it is illegal to own
those refineries because they didn’t go through due
process before they started their operations and I
also believe that the destruction of those refineries
will not be in the best interest of the country.
“What the government should do is to legalise those
refineries. The government should look at how they
can call the owners of those refineries together and
see how the country can benefit from them.”
Bolorunduro said.
Bolorunduro, who was represented by a Senior
Special Adviser to the Osun State Governor, Mr. Ogini
Kolawole, implored the Federal Government to create
an enabling environment that would encourage
investment in more private refineries in the country.
A former Executive Secretary, Petroleum Products
Pricing Regulatory Agency, Dr. Oluwole Oluleye, said
building of new refineries was one of the things that
was talked about while setting up the PPPRA.
He implored the government to legalise the
operations of the illegal refineries in the country.
Citing the refinery being built by the Dangote Group,
Oluleye stated that whether the government
continued with the payment of subsidy on refined
products or not, Dangote had done the right thing,
adding that the project would create jobs for
Nigerians.
About 11 years ago, the Federal Government through
the Department of Petroleum Resources licensed
some private operators to set up 18 refineries in the
country. Out of this number, according to the DPR, it
is only Niger Delta Petroleum Refinery that is
functioning and producing 1,000 barrels of crude oil
per day.
Speaking on the failure of the other 17 private
operators, the Head, Downstream Monitoring and
Regulation, DPR, Mr. Maigida Mudei, said that lack of
funds was one of the major reasons given by the
operators for their inaction.

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Wouldn't be a bad idea sha is they meet the required standard.

And them go create jobs for some people too

loomer:
Wouldn't be a bad idea sha is they meet the required standard.

And them go create jobs for some people too

I concur with you, no need of destroying them.since they don't wan build one fg should certify them.

ylordy:
I concur with you, know need of destroying them.since they don't wan build one fg should certify them.

Yes boss, and since them don dey legal, dem no go dey steal the product like they used to.

loomer:
Wouldn't be a bad idea sha is they meet the required standard.

And them go create jobs for some people too

well said

importexpert:


well said

Thanks boss