A former minister of interior, Retired Captain Emmanuel Ihenacho has said that the continuous importation of petroleum products is a failure of the current administration of Dr. Goodluck Jonathan.
“It is has always been a failure of the government but the thing is, are we going to allow it to continue? We all identified and agreed that the best thing to do is to add value to it(crude) by refining it into different products and fractions and also continue to market them internally and export them. We will create a lot of jobs. It is indeed a failure”, Ihenacho stressed.
Ihenacho, who is also the chairman of Integrated Oil and Gas Limited said this on the sideline of the sensitization workshop on modular refineries organized by the Department of Petroleum Resources, DPR in Lagos recently.
Jonathan served under the current administration of President Goodluck Jonathan before he was relieved of his appointment.
The Imo state –born businessman however argued that importation of crude oil should henceforth cease for the nation to derive full benefits of one of its most lucrative resources – crude oil.
He also called for more investment in the modular refineries saying it was the only way the problem of fuel scarcity can be solved. Ihenacho also urged the regulator of the Nigeria’s oil and gas sector – the Department of Petroleum Resources to be alive to its responsibilities by clearing the bureaucratic bottlenecks that often frustrate serious prospective investors.
Modular refineries are mini refineries which require relatively-moderate capital compare to giant refineries.
He said, “We are hoping that that DPR has taken the bull by the horn by inviting people to invest with assurance that it(DPR)will facilitate the entire scheme. We are hoping that the right thing will be done and people will be allowed to own modular refineries”.
“Is it not an embarrassment that a country which has crude oil to be exporting it overseas to be refined ?
“We will have the greatest benefits, if we have a programme that allows us to add value to that crude-oil that is produced.
“The value process involves distilling; refining it and getting all the bye-products and selling it. I think there is nowhere else to go rather than allowing willing investors who have resources to invest in the sector.
Ihenacho charged players in the oil sector to close ranks and support the DPR in its effort at facilitating the establishment of modular refineries. He however stressed the need for the government to provide smooth acquisition process of licenses.
“We have to advise all the stakeholders- investors, OEMs(Original Equipment Manufacturers) and regulator to be serious and to give themselves time line to deliver.
“There is no point when a commitment is giving to build a refinery in 13 months and someone is on the line for 3 to four years for license to be issued.
“ I told you about a friend, whose company had paid, over $1million as fees and about N30million in local fees but they are nowhere near establishing their refinery. We have to all resolve to change this thing for the better and make the process easy for prospective investors”, he concludes.
