The Group Managing Director of Nigerian National Petroleum Corporation (NNPC), Mele Kolo Kyari, said in Lagos, Monday, that the federal government is ready to offer fiscal incentives and other supports to genuine refinery investors in the country and ensure that such refineries come on stream as early as possible.
Kyari, who was speaking at the sideline of the ongoing Nigeria Annual International Conference and Exhibition (NAICE) organized by the Society of Petroleum Engineers (SPE) Nigeria Council in Lagos, said government is now ready to support private refinery investors by providing them fiscal incentives and other governmental supports to ensure the refineries come on stream, as the nation absorbs the products from them.
Currently, about 25 private companies have signified interest in the establishment of refineries in either modular or conventional capacities since 2015 but none has made significant impact except Dangote’s 650,000 barrels capacity refinery that is nearing completion.
On the nation’s four refineries, Kyari said what is paramount to the current management of the corporation is to ensure that they are rehabilitated and functioning at 90 per cent capacity, adding that NNPC is evaluating every available option to finance the project “There are many options that are opened to us. We can do equity financing, third party financing and some others but we are evaluating all possibilities.
The second thing we are going to do is to ensure that others that have the initiatives to have refineries are encouraged through provision of fiscal incentives and government’s support to ensure the refineries come on stream. “It is a shame that a country, a crude oil exporter, is a net importer of petroleum products.
But I assure you, we will put an end to that,” Kyari told the petroleum engineers. Meanwhile, the GMD has said the corporation is determined to meet the age-long proposed 40 billion barrels reserves and daily production of 3 million barrels per day target, emphasising that the corporation is already rallying its partners to ensure that fiscal issues that have been an impediment to investment in the sector are resolved.