Experts task FG on modular refineries, PIB

 Petroleum industry experts on Tuesday urged the Federal Government to encourage investors to develop modular refineries to grow the nation’s Gross Domestic Product (GDP) and create jobs for Nigerians.

They made the appeal in Lagos against the backdrop of lingering fuel crisis in the country.

Mr Olufemi Adewole, Executive Secretary, Depot and Petroleum Products Marketers Association (DAPPMA), observed that it was necessary to liberalise the market space beyond the present state to encourage more investments and increased efficiency.

Adewole said that the current regime of petroleum subsidies was no longer sustainable and should be scrapped totally for full deregulation.

According to him, the petroleum industry changing innovations, if carefully followed through, will ensure a smooth flow in petroleum products supply and enhance the economy.

“There is urgent need to eliminate issues of price subsidy and stimulate competition across the value chain.

“To provide a competitive market environment and sustain supply, the downstream should be fully deregulated.

“This is one of our proposals in the Petroleum Industry Bill (PIB) awaiting passage by the National Assembly,” he said.

The DAPPMA scribe said that it had become imperative to decentralise the activities in Lagos ports in order to reduce congestion and increase efficiency.

According to him, as a result of this, government is encouraged to sustain its efforts to open up the Lekki Free Trade Zone corridor.

“Modular storage facilities should be actively deployed as a means of increasing availability of petroleum products, while boosting job creation.

“An enabling environment needs to be put in place by government to help in harnessing the huge investment opportunities available from oil and gas, thus facilitating wealth creation and diversification of investments.

Alhaji Ahmed Debo, Western Zone Chairman of the Independent Petroleum Marketers Association of Nigeria (IPMAN), urged the 8th National Assembly to pass the PIB.

According to him, this will go a long way to create an enabling environment for increased competitiveness, efficiency and investment in the industry.

Debo decried the decline in Nigeria’s crude oil reserves after revealing that crude oil reserves were down to 31.81 billion barrels from 37.2 billion barrels in 2011.

He said without further policies to encourage exploration, Nigeria’s crude oil reserves would be depleted by 2048 given the current rate of decline of about one billion barrels every year.

He said that there should be no compromise with respect to compliance with safety and security measures, particularly in relation to synergy of all relevant stakeholders and standardisation of safety benchmarks.

“There is an urgent need for national and international collaboration to enhance the capacity of the Nigerian Navy and other relevant agencies in the Gulf of Guinea region.

“This will go a long way to curb armed robbery and sea piracy,” he explained.