Expert seeks N300bn fund to drive modular refineries
The Central Bank of Nigeria (CBN) has been urged to create a N300 billion fund to finance investments in modular refineries which could cut the foreign exchange going for petroleum products importation. An economist and Lead Consultant, Industry and Private Sector Development, ECOWAS Commission Prof. Ken Ife made the call on Thursday at the 32nd […]
The Central Bank of Nigeria (CBN) has been urged to create a N300 billion fund to finance investments in modular refineries which could cut the foreign exchange going for petroleum products importation.
An economist and Lead Consultant, Industry and Private Sector Development, ECOWAS Commission Prof. Ken Ife made the call on Thursday at the 32nd seminar for finance correspondents and business editors by the CBN. The seminar had the theme: “Exchange Rate Management and Economic Diversification in Nigeria: The ‘PAVE” option.”
He said rather than use trillions of naira in refurbishing the comatose refineries, even if it’s N300 billion, it should be set aside as interventions fund to rev up investments in modular refineries which will lead to disruptions in high import bills for refined petroleum products.
The lack of local capacity in refining petroleum products has led to huge revenue losses as the crude bye products are lost to foreign refineries.
A member of the CBN Monetary Policy Committee, Prof. Michael Obadan also said vested interests are preventing modular refineries from seeing the light of the day so the fuel will continue to be imported and the corruption ridden subsidy regime sustained.
“At the moment, this government has tried to encourage modular refineries and has given about 75 licenses to investors. A good number of them have commenced building and a few others have commenced production.
“A few in the East are producing diesel. But the biggest problem they have is their inability to access crude oil. That is tragic. The president is encouraging it but lower-level officials are denying them,” he alleged.