Energy
Dangote tells FG to allow only refinery license holders to import petrol
Dangote Group has urged the National Assembly to include in the PIB a law allowing only companies with active refining license to import petroleum products.
The Dangote Group has suggested the inclusion of a provision that in the Petroleum Industry Bill (PIB) that only companies that have active refining license should be allowed to import petroleum products.
The company, which is on the verge of completing a 650,000-barrels-per-day refinery in Lagos, said this would encourage investment in local refining.
According to a report by Punch, this disclosure was made by the Chief Strategy Officer of Dangote Group, Aliyu Suleiman, in a presentation during a visit by members of the National Assembly’s Joint committee on PIB to the project site as he highlighted several recommendations by the company.
READ: Nigeria set to become exporter of refined crude products –IMF
What the Dangote Group top official is saying
Suleiman said, “Nigeria is exceptional in being a major oil producer with near-zero refining capacity.
“Though the Dangote Refinery will help address this, there could be periods when petroleum products may need to be imported, such as when the refinery is undergoing turnaround maintenance or if demand grows to exceed capacity.”
The company made a recommendation for a backward integration policy to be applied in the downstream petroleum sector to encourage investment in local refining.
He said, “To support this, licence to import any product shortfalls should be assigned only to companies with active refining licences. Import volume to be allocated between participants based on their respective production in the preceding quarter. Such import will be done under the DSDP scheme.’’
READ: Dangote’s multi billion-dollar refinery is 75% complete, Otedola says
The Dangote Group said that fuel imported into Nigeria are of very low quality with a harmful effect on health and also impacts the performance and durability of vehicles, especially high-performance cars.
The company suggested that to safeguard the health of Nigerians, imported petroleum products must conform to the Afri-5 specification (50 ppm sulphur) in line with the ECOWAS declaration of February 2020 on the adoption of the Afri-Fuels Roadmap.
What this means
- The implementation of this policy suggestion will go a long to improve the local refining capacity of refined petroleum products in the country and subsequently end its massive importation that is the current trend.
- This will also help conserve the scarce foreign exchange that is being expended on the importation of petroleum products in the country.
- The Dangote refinery which has faced several delays in its completion is expected to take in 2021.
Business News
FG reacts to reports of revoking 32 refinery licenses
The FG has denied revoking 32 refinery licenses that were issued to some private companies across the country.
The Federal Government has denied revoking 32 refinery licenses that were issued to some private companies across the country.
The reaction follows reports making the rounds in some section of the media that the government has revoked some refinery licenses that it had earlier issued within a period of 3 years.
This clarification is contained in a statement issued by the Head, Public Affairs of the Department of Petroleum Resources (DPR), on behalf of the agency on Tuesday, April 13, 2021, in Lagos.
The DPR said that the refinery licenses have validity periods for the investors to achieve certain milestones and would become inactive after its expiration until the company reapplies.
READ: Nigeria’s debt sentence: The burden of the Port Harcourt refinery
What DPR is saying
The DPR in its statement said, “We wish to clarify that DPR did not revoke any refinery licence. Refinery licenses, like our other regulatory instruments, have validity periods for investors to attain certain milestones.
This implies that after the validity period for the particular milestone, the licence becomes inactive until the company reapplies for revalidation to migrate to another milestone. This does not in any way translate to revocation of the licence of the company.”
READ: FG explains why it revoked 4 Addax Petroleum Oil Mining Licenses
The DPR, in line with the aspirations of the government, initiated the refinery revolution programme of the country to boost local refining capacity by enabling business and creating new opportunities for new investors with the granting of modular and conventional refinery licenses to investors.
He emphasized that the regulatory agency would continue to support investors in the oil and gas industry in Nigeria using its regulatory instruments such as licences, permits and approvals to stimulate the economy and align with the government’s job creation initiatives.
READ: FG to extend fuel subsidy for 6 months
In case you missed it
Earlier on, some media reports suggested that the DPR had revoked refinery licenses that were issued to some companies for being inactive beyond the validity period. These refineries include modular refineries and conventional plants.
Business News
FG to extend fuel subsidy for 6 months
Reports indicate that the FG plans to spend N720 billion for the next 6 months on Premium Motor Spirit (PMS) subsidies.
