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Crude oil dealers seek intervention fund from CBN

  • Business

The Crude Oil Refiners Association of Nigeria (CORAN), the umbrella body of indigenous crude oil refiners, has appealed to the Central Bank of Nigeria(CBN) to create a crude refinery intervention fund for its members.

Its secretary, Olusegun Ilori, appealed in a statement on Wednesday after some CORAN members visited the leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja.

According to him, the fund, like the Agricultural Credit Fund or the Pharmaceutical Fund domiciled at the CBN, will help to drive effective business operations in the industry.

The secretary appealed to the authority to ensure that all incentives given to Dangote Refinery are extended to other refineries.

Mr Ilori urged the NMDPRA and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to engage with licensed modular refineries to develop an appropriate commercial model to guarantee reliable feedstock.

He also stated that the NMDPRA renewal fee of modular refinery licence guidelines would be revisited and possibly reduced by a 50 per cent waiver.

Mr Ilori, however, said it should be on the company-by-company assessment and granted to only companies with credible challenges, calling on NNPC should consider taking equity or grant loans to modular refineries via the provision of reformer or other requirement units to ensure adequate production of petrol based on agreed offtake conditions.

Mr Ilori suggested that the finance ministry issue import duty waivers for modular refinery equipment. He, however, said this should be after due certification of the equipment that qualified for a waiver had been done by the petroleum resources ministry.

He also said modular refinery owners with evidence of feedstock challenge should be given preference in allocating NNPC crude oil.

Mr Ilori suggested that crude oil from the NNPC be sold to modular refinery owners in naira equivalent for that day with a guarantee that all the refined PMS be sold the same way in the country.

“The Federal Ministry of Industry, Trade, and Investment (FMITI) will have to collaborate with the Ministry of Petroleum Resources (MPR) on the African Continental Free Trade Area (AfCFTA) with the view of creating a petroleum refining hub in Nigeria while leveraging on the agreement,” he explained. “Quarterly progress reports on modular refinery projects be sent to the ministry by NMDPRA. The ministry should liaise with Nigerian Immigration Service to resolve problems associated with the issuance of expatriate quota.”

NMDPRA management, led by Francis Ogaree, assured the team of the commitment of President Muhammadu Buhari to ensuring that more refineries are functional.

Mr Ogaree further assured CORAN of NMDPRA’s support and urged the crude oil refiners to reach out to the committee that would be set up to work with refineries.


Source: Peoples Gazette.