Former Lawmaker Urges FG to Adopt Policies to Attract Refinery Investors.
Dr. Dakuku Peterside, former Chairman of the House of Representatives Committee on Petroleum (Downstream), has called on the Federal Government to implement policies that attract investment in local refinery capacity. In an interview with Business Intelligence (TBI AFRICA) in Lagos, Peterside emphasized the need to draw private capital into crude oil refining, highlighting its significant impact on the economy and job creation.
“We must be mindful of the signals we send; otherwise, no one will invest in the sector. Refining is a low-margin business exposed to global market fluctuations,” Peterside stated. He stressed that investors require support through low-interest capital and other incentives without compromising national interests.
Peterside also advocated for government support and policy backing for modular refineries, underscoring the importance of providing security and a conducive policy environment for investors. “No genuine investor would choose an unsafe environment over a secure one,” he noted.
He called for policy and regulatory consistency, stating, “We cannot use different measures for different businesses and expect investors to take us seriously. Investors are sensitive to inconsistencies. The government should minimize political risk and enhance the ease of doing business.”
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Referring to the situation with the Dangote refinery, Peterside highlighted issues of regulatory clarity and policy inconsistency, asking, “What are the regulations? What is the government’s position on in-country refinery investment?” He advised investors to assess their risk appetite before investing and cautioned that inconsistent government policies and regulatory enforcement could deter investment.
Peterside emphasized that the treatment of local investors would signal foreign investors, adding that investments would go where they are welcomed. He concluded, “Let us be firm and clear on fundamentals, collaboration, regulatory regimes, policy targets, and operational excellence.”
