Vice President Yemi Osinbajo Tuesday sees current significant increase in level of local investment in the country as a strong indication that current administration’s economic policies are heading in the right direction.
This is just as the Vice President hinted of measures aimed at reducing interest rates to give cheaper credits especially to the local investors within a the shortest time possible.
“We have recently published through the NIPC, Nigeria’s full list of business incentives and barely two weeks ago the President asked that I chair a committee to look into how to provide lower interest rates for the manufacturing industry”
“We understand clearly that without some kind of preferential interest rates for the manufacturing industry in Nigeria, we will not be able to make much progress and for that reason we are now looking very closely into how we can provide cheap credit for the local industries and I hope we will be able to achieve this in a short period of time.”
Osinbajo who was commissioning the 300million liter capacity tank farm owned by Petrolex in Ogun state, described the project as direct result of and a testament to the “power of vision and dedication”
According to him “Significant local investments such as this send the strongest possible signal to foreign investors that not only is government saying that Nigeria is the investment destination in Africa, local smart money like Petrolex is also saying the same thing” adding that “And may I also say that there is credible independent third party evidence that we are on the right track.’’
The project which is coming at a time of instability in Petroleum product supply, is expected to strengthen distribution infrastructure, especially of petroleum products and also significant in meeting the projected target for reducing the importation of petroleum products and PMS to less than 20% by the end of 2018 and first quarter of 2019.
Osinbajo expressed the hope that local investors will lead in filing the space by providing such facilities with a capacity to store 300 million litres of petroleum products.
The facility is said to be the largest of its kind in the country and the largest in Africa, with the capacity to conveniently hold 4,000 trucks at a time, and a jetty capable of berthing 30million metric tons of cargo.
According to the Vice President, ” the facility will substantially improve retail distribution in Nigeria and increase domestic storage capacity for petroleum products and the cargo coming in on barges from larger vessels for now will be stored and loaded from the gantry right here, this will decongest the Apapa and Ibafo tanker traffic and facilitate distribution from here to practically anywhere in the country”
The Tank Farm that was commissioned is said to be the first phase of a much grander project of a Mega Oil City’ which will include a 250,000 barrels per day Refinery.
“But perhaps of greater importance as a feature of our national economic objectives is that this facility again bears out a philosophical plank of our Economic Recovery and Growth Plan, which is that private capital must lead Nigeria’s economic revolution. And this is trite as the private sector is the nation’s major economic force and that the primary business of government is to create the environment that enables commerce to thrive unhindered”
“And of importance also is the fact that significant local investments such as this send the strongest possible signal to foreign investors that not only is government saying that Nigeria is the investment destination in Africa, local smart money like Petrolex is also saying the same thing” he said
Osinbajo also noted that “there is credible independent third party evidence that we are on the right track. A month and half ago the World Bank adjudged us to be one of the ten most improved economies in the world this year, from the point of view of our business.
The facility is expected to create not less than 10,000 direct and indirect jobs, with significant impact on the local economy by way of increased incomes to traders, farmers, artisans, and landowners.
He noted that “The Federal Government is absolutely clear in its belief that industrialization is the key to achieving sustainable economic growth and creating jobs for millions of young people”
This is just as he described the petrochemical industry as “a logical and crucial component of this plan and we are doing all we can to provide an incentive regime that will drive investments in this sector”
” And we certainly would like to see credible investors like Petrolex prominently in this crucial space as well. And speaking to Mr Adebutu, already, there is a plan for a fertilizer facility here and also for the production of several other elements of the petrochemical industry”
“Let me again express the Federal Government’s full support for this project and our pledge is that we will be with you every step of the way, supporting in every way we can”
“Nigeria eagerly awaits the full manifestation of this “Mega Oil City Project” and in a few minutes it will be my pleasure to commission the Petrolex Mega Oil City project”
Tony Ailemen, Abuja
