Members of the Crude Oil Refinery Owners Association of Nigeria (CORAN) yesterday urged President Bola Tinubu to accept the payment of Naira for their feedstock – crude oil.
Besides, the association asked the government for guaranteed off -take of products and removal of bureaucratic hurdles.
The association also urged the government to use the Central Bank of Nigeria (CBN) to create a window of intervention fund such as was given to Dangote to other modular refinery companies to access financial support to complete their projects.
The requests, which are part of the recommendations that the Executive Chairman, Mr. Momoh Jimah Oyarekhua and Secretary Barrister Olusegun Ilori issued in statement at Abuja yesterday, are “quick wins that will help in the process of getting more local refineries to come on stream.”
CORAN said: “These recommendations will help this administration with the Short Mid and Long Term solutions to the Nigerian Energy challenges.
”A critical necessity at this time is for the CBN to create a window of intervention Fund such as was given to Dangote to other modular refinery companies to access financial support to complete their projects.
“The problem of guaranteed supply of crude to the refineries with Naira payments, guaranteed offtake of the products and removal of bureaucratic bottlenecks from the regulatory bodies are some urgent issues for resolution.
“The present challenge relating to regulatory agencies duplicating licenses and permits and engaged in conflicting directives put operators in a confusing state of affairs.”
The statement was basically on the association’s position on the removal of petrol subsidy, noted that some of these requested policy actions are contained in the white paper of the Committees on Establishment of Modular Refinery Intervention Funding and Technical Committee on Crude Oil Domestic Supply Obligation.
According to the press release, it committee was of the Ministry of Petroleum Resources with the Nigerisn Upstream Petroleun Regulatory Commission, Nigerian Midstream and Downstream Petroleum Regulatory Authority, Nigerian National Petroleum Company Limited, CBN and other stakeholders.
CORAN said as Mr President has kicked the ground running, and as he settles down to solve the problems associated with Petrol subsidy removal, “we draw his attention to the need to take all stakeholders along particularly all of us the in the refining value chain.”
CORAN noted that the bold step would not only save the country huge amount of resources hitherto spent on subsidies at a critical time when the country is grappling with revenue shortfall, but also open a new vista for Economic growth and revenue expansion through increased local and direct foreign investment.
Continuing, the association said: “The anticipated capacity expansion in the production of local crude refineries of our members will ultimately solve the challenge of domestic petroleum product refining that have bedeviled the country for years.
“This coupled with the aggressive job creation within the Mid and Downstream sectors of the Petroleum industry will boost the economy , Members of CORAN are confident that Mr President’s administration will pay attention and contribute immensely to the ongoing repositioning of the Nigerian Oil and Gas Industry particularly the development of the MidStream and Downstream Segments with the aim of moving the country from an Import reliant Country to a major refining and net exporter of refined petroleum product.
“We wish to acknowledge the Ministry of Petroleum Resources, the Midstream and Downstream Regulatory Authority (NMDPRA) Nigerian Upstream Regulation Commission (NUPRC) for their efforts and contribution towards the promotion of Crude oil Refining in Nigeria.
“It was working with all stakeholders that led to the approval of the White Paper of the Committees on Establishment of Modular Refinery Intervention Funding and Technical Committee on Crude Oil Domestic Supply Obligation, the promulgation and take off of the implementation of Petroleum Industry Act, (PIA) coupled with the review of Various industry regulations to reflect the new approach geared towards the development of the Petroleum industry in Nigeria.”
THE NATION
