Expert Urges FG to Invest in Refinery Infrastructure Development.
Emmanuel Iheanacho, Chairman of Integrated Oil and Gas Ltd., has called on the Federal Government to invest in refinery infrastructure development through private-sector partnerships. In an interview with news men on Tuesday in Lagos, Iheanacho emphasized the importance of building new refineries and upgrading and expanding existing ones to support the government’s policies.
Iheanacho highlighted that by reducing reliance on fuel importation, Nigeria could create new jobs, generate reinvestable profits, and facilitate inward technology transfer. These actions would stimulate economic growth and improve overall energy security.
He criticized the current policy of sustained fuel importation, noting that it burdens the Nigerian economy by draining foreign exchange resources and hindering economic growth. He suggested that a policy focused on developing and encouraging local refining could address the country’s energy supply challenges effectively.
Iheanacho stressed the necessity of increasing refining capacity to meet local demand for energy products. He also highlighted the importance of regular maintenance and efficient operations of existing and planned refineries. He urged the government to encourage local participation in the refining industry at both developmental and operational stages.
“Government should also implement policies and regulations that support local refining,” Iheanacho stated. He outlined numerous benefits of investing in local refining development, including reduced reliance on foreign exchange for fuel imports and improved product quality by adhering to Nigerian (SON) standards.
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Local refining, he added, would eliminate the costly transportation of crude to foreign refineries and the return of refined products to the Nigerian market. It would also generate revenue for the government through taxes, levies, and royalties 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.
