*Experts hail Dangote Refinery’s expansion from 650,000 to 1.4m bpd
The Nigeria Employers’ Consultative Association (NECA) has commended the Federal Government for the 15 per cent import tariff on certain petroleum products, calling it an appropriate and necessary measure to protect and encourage local refining.
Also, some economic and energy experts have commended the Dangote Refinery for its plan to expand its refining capacity from 650,000 barrels per day (bpd) to 1.4 million bpd.
In a statement, yesterday, NECA Director-General, Adewale-Smatt Oyerinde, said it was absurd for a country blessed with crude oil to spend so many years importing petrol and diesel.
He mentioned that the comatose state of the nation’s four refineries was partly attributed to the ongoing importation of the products, which, he said, the refineries could produce.
According to him, the imposition of the tariff on imported fuel is not only timely but essential, adding that the policy was a significant step towards promoting local value addition, strengthening domestic refining capabilities, conserving foreign exchange (FOREX) and advancing Nigeria’s industrialisation plans.
To expedite economic recovery, promote local production, strengthen the Naira, and attract investors, Oyerinde said the government must demonstrate commitment and confidence in local production.
If implemented effectively, the NECA boss said, the policy would accelerate Nigeria’s challenging journey towards energy sufficiency and economic development.
It will also provide the Naira with some breathing room, causing pressure on FOREX for imports to be redirected towards other critical needs.
RELATEDLY, the experts stated that the move would put Nigeria on the path to achieving full self-sufficiency in petroleum products, conserve forex and improve fuel affordability for ordinary citizens.
They spoke yesterday in separate interviews with journalists in Lagos, following the announcement of the expansion by Aliko Dangote, the President of the Dangote Group.
The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, described the move as a landmark step in Nigeria’s industrial development.
“We should be proud that a Nigerian of such stature has demonstrated the capacity and courage to ensure that our country becomes self-reliant in refined petroleum,” Yusuf said.
According to him, the expansion would enable the refinery to meet Nigeria’s domestic fuel demand and export more products to global markets, strengthening the country’s foreign reserves.
Similarly, Ayodele Oni, partner and chair of the Energy and Natural Resources Practice Group at Bloomfield, described the refinery expansion as a “bold and transformative industrial venture.”
He stated that the establishment of such a large complex within Nigeria would promote local content, create jobs and stimulate technological advancements in the energy sector.
However, he noted that legitimate concerns exist about the possible emergence of monopolistic dominance within the sector.
“There are always concerns around monopoly, and rightly so. This is why state regulators like the Federal Competition and Consumer Protection Commission (FCCPC) must be effective and proactive,” he said.
President of the Progressive Shareholders Association of Nigeria, Boniface Okezie, lauded Dangote for demonstrating consistency and ambition in expanding the refinery’s capacity.
He said the development was an indication of confidence in Nigeria’s economy and a reflection of the growing participation of indigenous investors in large-scale projects.
