Private Sector Seeks Oil Importation Audit, Refineries’ Operational.
Organised Private Sector (OPS) has sought the review of the current petroleum product importation processes so as to have a standard regime that meets international best practices.
They equally asked the federal government to make the nation’s refineries functional to prevent the current situation by which toxic fuel that cause problems for many are imported into the country.
“We urge the government to conduct an audit of the current processes towards having a standardized system that meets international best practice. These are necessary to forestall future occurrences and boost the integrity of our importation processes”, stated Michael Olawale-Cole, President, Lagos Chamber of Commerce and Industries (LCCI).
Also, Ide John Udeaghala, the National President, Nigerian Association of Chamber of Commerce, Industry, Mines and Agriculture (NACCIMA), is worried about the current petrol scarcity that has caused price hike, and hurting the economy.
Olawale-Cole told InsideBusiness that the current situation is disappointing and risky, and calls for an immediate overhaul of our import processes and systems to forestall any chance of future occurrence”.
“The news about the importation of contaminated fuel and subsequent recall of the same that caused the the hike in PMS pump price came to us in LCCI and Nigerians as a rude shock. Nigerians had trusted that there was a fuel importation system that could not be compromised in the manner it happened since two weeks ago now.
He expressed concerns about the reported cases of damages to vehicles across the country before the adulterated fuel was withdrawn and imagined the danger such portends if it had happened with aviation fuels for our airlines.
Beyond the rhetoric of accusations and denials by the parties involved, the LCCI President sought an extensive and conclusive investigation to unravel the circumstances that led to the compromised importation.
“The results of the investigations should point to actionable penalties for all parties involved to serve as a deterrent against future occurrences.
Udeghala stressed the need for a definitive resolution of the oil and gas sector, and end fuel queues, to curb the serious implications on life and the economy.
“NACCIMA Council sees this as a reflection of the various problems which the new Pteroleum Industry Act (PIA) cannot resolve’.
Both Olawale-Cole and Udeaghala resolved that the government should make the country’s refineries functional as well as create an environment where the refineries can thrive.
Nigeria National Peroleum Corporation (NNPC) has four refineries, two in Port Harcourt and one each in Kaduna and Warri with a combined capacity to produce 445,000 barrel per day.
Sadly, all the four refineries in Nigeria, Africa’s top oil exporter, are currently not funtional according to the Group Managing Director, Mele Kyari, who in September 2020 on Nigeria’s Channels TV, said they were shut down because pipelines feeding crude oil into them were badly damaged.
Olawale-Cole said the most sustainable solution to curtail these hazards and perpetually remove the burden of fuel subsidy is to have our domestic refineries in operation to refine our crude oil for local consumption and for export to boost our foreign exchange earnings.
He also emphasized that the government is expected to create an enabling environment where private refineries can thrive.
‘Let us imagine that Nigeria will save about N 6trillion a year from fuel subsidies if we refine our crude and not accommodate any landing costs as the case presently. “This figure represents about 50 per cent of our expenditures (when you add the recent proposed N2.56 trillion supplementary budget to cover six months fuel subsidy) in the 2022 Federal Government Budget.”
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