Capt Emmanuel Iheanacho, Chairman of Integrated Oil and Gas Ltd., has advised the Federal Government to invest in refinery infrastructure development through private-sector partnerships.
The oil and gas expert gave the advice in an interview with the News Agency of Nigeria (NAN) on Tuesday in Lagos.
Iheanacho said that building new refineries, upgrading and expanding existing ones would benefit the government’s policy.
He added that Nigeria could reduce its reliance on fuel importation, creating new jobs and enjoy reinvestable profits by substituting local for foreign refining,
He said that this could also facilitate inward technology transfer, stimulating economic growth and improving energy security overall.
Iheanacho reiterated that a policy of sustained fuel importation had constituted a burden on the Nigerian economy, draining foreign exchange resources and hindering economic growth.
He said that a policy option based on a plan to develop and encourage local refining was a viable solution to the current energy supply challenges.
He said that it was necessary to increase refining capacity to meet local demand for energy products.
He added that ensuring regular maintenance, and efficient operations of existing and contemplated refineries was necessary.
According to him, the government should encourage local participation in the refining industry, both at the developmental and operating stages.
“Government should also implement policies and regulations that support local refining.
“There are numerous benefits which are accrued from investments in the development of local refining,” he said.
Iheanacho said that by refining petroleum products locally, Nigeria could reduce its reliance on foreign exchange needed to fund fuel imports.
He advised that local refining would ensure that products meet predetermined Nigerian (SON) standards, improving quality and reducing the risk of adulterated products.
“Local refining eliminates the need for costly transportation of crude to foreign refineries and the return of refined products from the foreign refineries to the Nigerian market.
“Local refining can and will generate revenue for the government through taxes, levies and royalties which will be imposed on locally refined products.
“Local refining can and will contribute to the diversification of the Nigerian economy, reducing its dependence on crude oil exports.
“This diversification potential will result in the creation of value in the form of jobs and reinvestment profit in the economy,” Iheanacho explained.
