Crude Oil Refiners Back Subsidy Removal, Seek CBN’s Intervention for Modular Refineries
Meanwhile, CORAN urged the CBN to create an intervention fund for modular refinery companies in Nigeria, as it did for the Dangote refinery.
The association threw its weight behind the recent removal of petrol subsidy, which it said would save the country huge amount of resources and open a new vista for economic growth. The body said the country’s local currency should be used in purchasing crude by modular refineries.
In a statement signed by Chairman, Executive Committee of CORAN, Mr Momoh Oyarekhua, and Secretary, Olusegun Ilori, the group further urged the government to resolve the problems of crude supply uncertainty and removal of bureaucratic bottlenecks.
The association said, “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 off-take of the products and removal of bureaucratic bottlenecks from the regulatory bodies are some urgent issues for resolution.”
In addition, it said the present challenge relating to regulatory agencies duplicating licences and permits and engaging in conflicting directives put operators in a confusing state.
CORAN also appealed to organised labour and fellow Nigerians to give the new administration time to sort out what it termed the deregulation quagmire, which it said had bedevilled the country for long.
“The initial pains will soon be over if we follow through with determination and the necessary human face and palliatives, which must be injected to cushion the social impact of deregulation,” CORAN stated.
According to the group, the anticipated capacity expansion in the production of local crude refineries of its members will ultimately solve the challenge of domestic petroleum product refining.
It lauded all stakeholders who worked to ensure the approval of the white paper on the report of the committees on establishment of modular refinery intervention funding and technical committee on crude oil domestic supply obligation, among others.
Despite what it said were harrowing conditions still militating against smooth operation by its members, CORAN said its members had continued to brave the odds by bringing more facilities on stream.
CORAN noted that it was encouraged by the feat achieved by the Dangote refinery and expressed the hope that it will mark the beginning of greater things within the petroleum refining space in Nigeria.
It stated, “We acknowledge the fact that despite the optimism of the positive impact of the coming on stream in the shortest timeframe of Dangote refinery, small and medium-sized modular refineries are needed and essential to meet the demand of fuel supply and bring about competition necessary for the economy.”
The group also congratulated its members that had floated modular refining facilities, including OPAC, Duport, Edo refinery, WalterSmith, and Niger Delta refinery on the successful completion of their refinery plants and commencement of operations.
