…To announce investors interested in Nigeria’s local refineries next week
HARRISON EDEH,ABUJA
The Federal Government on Wednesday said it is ready to offer tax relief and Customs duty support to woo investors into Nigeria’s Modular refineries.
This effort, the government said, is to address concerns of daily growing consumption of Premium Motor Spirit,PMS ,as it works towards lessening fuel importation and ensuring full capacity in local production of Premium Motor Spirit (PMS).
BusinessDay finds that Nigeria would be needing an additional 75 Modular refineries to support 450,000 barrels per day installed capacity of local refineries, while also adding the upcoming 650,000 barrels per day of Dangote refineries to address growing consumption of about 51.8 million litres of daily PMS consumption.
“Right from cost duty waivers and tax relief, discussions are advanced already by the government to assist investors in Modular refineries and the government is determined to ensure maximum local production of petroleum products in the country.”Bello Sulaiman, Senior Special Adviser on Refinery,
Downstream and Infrastructure, to the Minister of State for Petroleum Resources, said on a panel discussion at the ongoing Nigerian International Petroleum Summit in Abuja.
”I am the person driving the modular refinery issue in the ministry. Modular refineries have very long impact. We have teething problems and we are putting up necessary incentives to ensure investors in Modular refineries take off smoothly.”He noted.
He further observed,”At the Nigerian National Petroleum Corporation, NNPC, we have had an advanced discussion with the Federal Ministry of Finance and the authorities of the Nigerian Customs Service, to support these investors.”
Also, from the Modular refineries, there is a lot of market for diesel and we are discussing with the Federal Ministry of Transport on ensuring that the speed boats being used in the Niger Delta get diesel engines.
He said, “Part of the discussions we are holding today is to ensure that cooperatives in the Niger Delta regions get the Department of Petroleum Resources, DPR Approval to have smaller filling stations managed and owned by the community at the Niger-Delta region, which would have positive multiplier effects in the region in running the downstream business.
”Most of the modern technologies we are also looking at are on how the gas being flared would have economic value and be converted into fuel, using modern technology.”
He further pointed out that the Federal Government had advanced discussion with investors who are investing in revamping Nigeria’s local refineries of 450 000 installed capacity.
“The government will next week announce investors who had promised to put their money on the revamping of our local refineries.This will be private sector investments. This is part of the promise the minister made of ensuring 90% of local refining capacity within 20 months.”
