6 private modular refineries ready for operations, says FG

Senior Special Assistant to the Vice President on Niger Delta Affairs, Mr. Edobo Iyamu has confirmed that six modular refineries licensed by the federal government would soon commence operations.

Iyamu disclosed this in Uyo on Tuesday during a dialogue on critically appraising the mechanisms used to transfer benefits of resource extraction to the Niger Delta region

He said that the establishment of the refineries were part of the deliberate efforts by President Muhammad Buhari’s government to grow local content in the region.

The presidential aide explained that in a bid to ensure that the Niger Delta region benefits from the opportunities that accrue from oil exploration, the federal government has kept its word by ensuring that the refineries were not only given licenses, but also encouraged to begin production.

He said that the federal government has ensured that there is a conducive environment for investors to open modular refineries in the country.

According to him, government has approved zero duties to investors importing modular refinery equipment.

“Let us not forget that in previous administration, 35 modular licenses were issued; nobody did anything about it.

“The licenses were issued and people just put the license in their suitcases because they were benefiting from the era of petroleum subsidy.

“I was going to say also that because of the policy of this government which is zero duty, it has encouraged a lot of investors into the space. So, today as I said we have six modular refineries and I have been there myself; am not talking about things I read or saw from newspapers.

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“I went there physically to inspect the modular refineries,” Iyamu said.

He enumerated that some of the policies set up by the government to encourage local content in the oil and gas sector to include strengthening the Local Content Act.

A member of the Nigeria Extractive Industries and Transparent Initiative Expert Advisory Panel, Dr. Ukoha Ukiwo, said that various framework and mechanisms to bring benefits to the region cannot succeed if trust is not built through engagement between the government, oil companies and the host communities.

Ukiwo said that harmony can be created in the region and benefits derived if opportunities were created for people of the area to participate in the process of oil and gas production.