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Niger Delta Stakeholders Strategise Ahead of Formalising Modular Refineries

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  • Niger Delta Stakeholders Strategise Ahead of Formalising Modular Refineries

Some Niger Delta stakeholders have commenced the enumeration of artisanal refineries and crude oil distillation camps in the region ahead of Federal Government liberalisation of modular refineries.

Vice President Yemi Osinbajo had, on February 14 during the tour of oil communities, announced the policy of deploying modular refineries to drive the economic development of the region.

Speaking at a sensitisation event, a social activist, Pat Obiene, explained that it was a ‘preparation’ for Federal Government’s new policy to formalise the registration of artisanal refineries.

Obiene, who convened the event, said that three groups, Masses Congress, Bayelsa Business Roundtable and Modular Refineries Business Association were collaborating on the data collection to determine the total capacity of the local refineries.More than 200 operators of crude oil distillation camps referred in local parlance as ‘kpo Fire’ camps turned up for the exercise.According to Obiene, “This is a follow-up to the pronouncement on the Federal Government’s desire to use modular refineries open up the Niger Delta and fast-track development, so we thought it wise to kick-start this initiative.”

He explained: “We have designed the forms to classify the artisans into Crude Point Owner, Loader, Cooker/Refiner and Dumpsite Owner to capture data on number of workers, daily crude volume and daily turnover.

Olaitari Ikemike, President of Bayelsa Business Roundtable, an affiliate of the African Business Roundtable, explained that the initiative was aimed at networking and cross-fertilisation of ideas among stakeholders.

Mrs. Faith Wilkinson, a local manufacturer of lubricants, urged women involved in local refineries to embrace the emerging opportunity to add value to the crude oil endowments of the region.

Roland Kiente, who operates a local refinery in Peremabiri Community in Southern Ijaw Local Government in Bayelsa, canvassed further sensitisation in the creeks to enable all operators to register.

Chairman, Modular Refineries Business Association in Bayelsa, Clever Oyabara, noted that formalisation would eradicate youth restiveness.

Meanwhile, the Ndokwa Keku Union (NNU) in Delta State has said the Vice President’s visit to the Niger Delta region would not be meaningful if efforts were not made to correct the degradation and neglect of the area.

The President-General of NNU, Chief Johnson Opene yesterday in Asaba urged the Federal Government to implement the stepping down of the power project in Ndokwa East, establish a federal skill acquisition centre in the area, remain faithful to the amnesty programme and carry along the Ndokwa nation in decisions concerning the region.

 

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market.

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Economy

We Are Losing N13.9bn Monthly Because FG Caps Tariff – Discos

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Discos Says it is Losing N14bn Monthly Because of NERC Capped Tariff

The Nigerian power Distribution Companies (Discos) have said they a losing N13.9 billion in revenue every month because the Nigerian Electricity Regulatory Commission, limited how much they can charge for consumption.

Ernest Mupwaya, the Managing Director, Abuja Electricity Distribution Company, made the statement during a presentation on behalf of the Discos to the House of Representatives Committee on Power.

The statement was after the Discos demanded realistic indices before the implementation of the proposed service reflective tariff, which was supposed to be implemented on July 1.

Mupwaya said there were some outstanding requirements before the service reflective tariff could be implemented.

“One of them is the removal of estimated billing caps. The financial impact of the Capping Order is an average loss of N13.9bn monthly, thereby, undermining or jeopardising the minimum remittance requirement,” Mupwaya stated.

The July 1 service tariff implementation was halted by members of the National Assembly, who prevailed on the Discos to shelve the date to the first quarter of 2021 due to the current economic challenges in Nigeria.

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Gbajabiamila Says Nigeria Can’t Compete in AfCFTA With Weak Industries

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Nigeria Must Ramp up Industrialisation to Prevent Dumping by Other Nations

The Speaker of the House of Representatives, Femi Gbajabiamila, has said the nation can not compete effectively in the African Continental Free Trade Area (AfCFTA) with weak industrialisation and manufacturing activities.

Gbajabiamila disclosed this while receiving Adesoji Adesugba, the newly appointed Managing Director of the Nigeria Export Processing Zones Authority.

The details of the visit were made public on Thursday in a statement titled, “AFCFTA: House Speaker tasks Nigeria on industrialisation through free trade zones.”

Gbajabiamila was quoted as saying “We must act proactively so that we don’t become a dumping ground for other African nations.

“Our best option in this circumstance is to immediately set machinery in motion to ensure the effective functioning and flourishing of our export processing zones.

“We must remove all bottlenecks and perfect all stumbling blocks. We will then be fully prepared for AfCFTA and also generate massive jobs for our unemployed youths and enhance our foreign earnings.”

He added that the nation must as a matter of national emergency ramp up industrialisation through free trade zones and other effective means to compete with South Africa, Africa’s most industrialised economy and other African nations.

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FG Marches Forward With Zero Subsidy Plan

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FG Says Its Done With Fuel Subsidy After Years of Wasted Resources

The Federal Government through the Ministry of Petroleum Resources said there is no going back on zero-subsidy.

According to a statement released on Thursday by the Minister of State for Petroleum Resources, Timipre Sylva, the Federal Government can no longer bear the burden of petrol subsidy.

In the statement titled ‘Deregulation: The facts and the reasons behind the policy’, the minister said “After a thorough examination of the economics of subsidising PMS for domestic consumption, the Federal Government concluded that it was unrealistic to continue with the burden of subsidising PMS to the tune of trillions of naira every year, more so when this subsidy was benefiting in large part the rich, rather than the poor and ordinary Nigerians,” he said.

Sylva explained that it simply means that the government will not be the sole supplier of petroleum products but will now encourage the private sector to get involved in the business.

“This means also that market forces will henceforth determine the prices at the pump. In line with global best practices, the government will continue to play its traditional role of regulation to ensure that this strategic commodity is not priced arbitrarily by private sector suppliers,” Sylva said.

The minister likened the regulatory function to the role of the Central Bank in the banking sector, “ensuring that commercial banks do not charge arbitrary interest rates”.

Sylva said, “Petroleum products are refined from crude oil. Therefore, the price of crude (the feedstock) for the refining process will affect the price of the refined product.

“When crude oil prices were down, government, through its regulatory functions, ensured that the benefits of lower crude oil prices were enjoyed by Nigerians by ensuring that PMS was lowered. At that time, we indicated that an increase in crude oil prices will also reflect at the pump.”

He said one of the reasons Nigeria has not been able to attract enough investment into the refining industry was because of the burden of fuel subsidy.

Sylva said, “We need to free up that investment space so that what happened in the banking sector, aviation sector and other sectors can happen in the midstream and downstream oil sector.

“We can no longer avoid the inevitable and expect the impossible to continue. There was no time government promised to reduce pump price and keep it permanently low.”

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