The Dangote Group has advised the inclusion of a provision that within the Petroleum Industry Bill (PIB) that solely firms which have lively refining license must be allowed to import petroleum merchandise.
The firm, which is on the verge of finishing a 650,000-barrels-per-day refinery in Lagos, mentioned this might encourage funding in native refining.
According to a report by Punch, this disclosure was made by the Chief Strategy Officer of Dangote Group, Aliyu Suleiman, in a presentation throughout a go to by members of the National Assembly’s Joint committee on PIB to the venture web site as he highlighted a number of suggestions by the corporate.
What the Dangote Group high official is saying
Suleiman mentioned, “Nigeria is exceptional in being a major oil producer with near-zero refining capacity.
“Though the Dangote Refinery will help address this, there could be periods when petroleum products may need to be imported, such as when the refinery is undergoing turnaround maintenance or if demand grows to exceed capacity.”
The firm made a suggestion for a backward integration coverage to be utilized within the downstream petroleum sector to encourage funding in native refining.
He mentioned, “To assist this, licence to import any product shortfalls must be assigned solely to firms with lively refining licences. Import quantity to be allotted between contributors based mostly on their respective manufacturing within the previous quarter. Such import shall be performed below the DSDP scheme.’’
The Dangote Group mentioned that gas imported into Nigeria are of very low high quality with a dangerous impact on well being and likewise impacts the efficiency and sturdiness of automobiles, particularly high-performance automobiles.
The firm advised that to safeguard the well being of Nigerians, imported petroleum merchandise should conform to the Afri-5 specification (50 ppm sulphur) in keeping with the ECOWAS declaration of February 2020 on the adoption of the Afri-Fuels Roadmap.
What this implies
- The implementation of this coverage suggestion will go an extended to enhance the native refining capability of refined petroleum merchandise within the nation and subsequently finish its huge importation that’s the present pattern.
- This can even assist preserve the scarce international trade that’s being expended on the importation of petroleum merchandise within the nation.
- The Dangote refinery which has confronted a number of delays in its completion is predicted to absorb 2021.