Local oil refiners are seeking CBN and NNPC’s help with the funding and feedstock issues.

Ibekimi Oriamaja Reports

The Central Bank of Nigeria (CBN) has been urged to establish a crude refinery intervention fund, similar to the agricultural credit fund or the pharmaceutical fund housed at the apex bank, by indigenous oil refiners operating under the auspices of Oil Refiners Association of Nigeria (CORAN), in order to promote efficient business operations in the nation.

Additionally, they urged the Nigerian National Petroleum Company (NNPC) Limited to take into account investing in or lending money to modular refineries in order to supply reformer and other necessary equipment, in order to ensure enough production of gasoline based on established offtake conditions.

In fact, they begged the CBN and NNPC to extend to them all the incentives and support accorded to Dangote Refinery.

During their visit to the management of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in Abuja, CORAN members under the leadership of their Board of Trustee’s Chairman, Chief Emmanuel Iheanacho, made the appeal.

They encouraged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the NNPC, and the NMDPRA to work with the licensed modular refineries to create a viable business model that would ensure consistent feedstock.

According to a statement released by CORAN yesterday and provided to Track News, Mr. Francis Ogaree, the NMDPRA’s Executive Director for Hydrocarbons Processing Plants, Installation and Transportation Infrastructure, presided over the meeting with the regulator in an effort to interact with all pertinent regulatory agencies.

When presenting CORAN’s case, Mr. Olusegun Ilori, Secretary of CORAN, pleaded with the decision-makers to make sure that all incentives granted to Dangote Refinery were likewise given to other refineries.

Additionally, CORAN requested that the NMDPRA review its modular refinery license renewal fee parameters and possibly waive 50% of them.

They recommended that such reviews be conducted on a company-by-company basis and given to just those businesses with real problems.

In order to verify that government regulations are being followed, CORAN further recommended that the authority conduct an annual inspection of modular refineries.

In order to secure adequate production of PMS based on agreed-upon offtake conditions, the organization suggested that the NNPC consider assuming shares in or making loans to modular refineries via the provision of reformer/other required units.

They also recommended that the Federal Ministry of Finance issue import tax waivers for modular refinery equipment once the Ministry of Petroleum Resources had properly certified the equipment that qualified for the waiver.

According to CORAN, modular refinery operators who can demonstrate a feedstock difficulty should be given preference when distributing NNPC’s crude oil.

The local refinery owners further urged that the NNPC sell crude oil to owners of modular refineries in naira at the going market cost with a guarantee that all refined gasoline will be sold in naira at the going rate in the nation.

The Federal Ministry of Industry, Trade, and Investment will work with the Ministry of Petroleum Resources on the African Continental Free Trade Area (AfCFTA) with the goal of developing a petroleum refining hub in Nigeria while leveraging the Agreement, the statement continued.

“NMDPRA shall send quarterly status updates on modular refinery projects to the Ministry.

For the purpose of resolving issues related to the issuing of the expatriate quota, the ministry should communicate with the Nigerian Immigration Service.

Dr. Zainab Gobir thanked the association for coming and assured the team that President Muhammadu Buhari was committed to ensuring that more refineries are operational in response to CORAN, the management of NMDPRA led by Ogaree, and the Executive Director of Economic Regulations and Strategic Planning.

Ogaree also reaffirmed the authority’s support for CORAN and urged them to get in touch with the committee that will be formed to work with refineries. He also made passing mention of a database of difficulties and a report on our operations’ progress.

Gobir promised the agency’s support for the association and indicated that with regular consultation, some of the CORAN’s concerns might be brought up at levels of economic policy.

She informed the association of the government’s economic strategy objective to increase refining in Nigeria from 0.01 percent to one percent and promised that her office would open a dialogue for improved communication between the refiners and the authority.

She continued, “The Authority will help the association, not only as regulators but as partners for the sector’s advancement rather than to ensure that the nation’s refining objective and vision are realized.