The Dr. Kalu Idika Kalu-led National Refineries Special Task Force has said that 28 out of the 35 investors given licences by the Federal Government to establish refineries in the country lack the capacity to do so.
This was contained in the committee’s report presented to President Goodluck Jonathan on Friday by the committee’s alternate chairman, Mallam Yusuf Ali.
“We have examined 35 people who have applied, who were given licences to operate refineries; unfortunately, we examined and we found only seven that may be capable of setting up refineries,” Ali said.
He said to ensure self-sufficiency in petroleum products’ production; the country needed three more refineries that should be established either by the government or private investors.
The refineries, he added, should be established in Lagos, Bayelsa and Kogi states.
Ali said, “We have also made a recommendation that there is a need to have three more refineries in the country. We suggested the biggest refinery should be sited in Lagos, the medium size should be sited in Bayelsa; another small size refinery be sited in Kogi State.
“So, we have recommended the setting up of three refineries, either by the government or anybody as soon as possible.”
The committee also suggested the immediate privatisation of existing refineries in the country, which should be done within 18 months.
It, however, warned that the interest of Nigerians must be considered in the process of privatising the refineries.
Ali said, “We should not sell everything to foreigners. Government must have some shares in those privatised refineries.
“Eventually, those shares held by the government should be sold to Nigerians on the stock exchange when the time comes so that every Nigerian who has N20 or N30 will be proud to say they have shares in these refineries.”
The committee also made a case for the privatisation of petroleum pipelines and depots.
It also called for increased security of the refineries to safeguard them and the refined products.
“We sincerely believe that if these steps are taken, shortages of petroleum products, black marketing and so on will be a thing of the past,” Ali said.
Also, the Mr. Dotun Suleiman-led Task Force on Governance and Control has suggested the establishment of six industry institutions in the post-Petroleum Industry Bill era.
Suleiman listed the institutions to include the National Petroleum Directorate, Nigerian Petroleum Inspectorate, Petroleum Asset Management Company, National Oil Company, Nigeria Content and Capacity Development Agency and National Frontier Exploration Services Unit.
PUNCHNG
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