Economy

Local Refiners Should Engage in Petroleum Production – Reps

Written by Agboola Oluwafemi on November 1, 2024

News Views: 328

The House of Representatives has urged the Federal Government to create a strategy for involving indigenous refiners in Nigeria’s petroleum production value chain.

This resolution emerged following the endorsement of a motion emphasizing the need to reform and regulate Nigerian petroleum production to incorporate artisanal refiners. The motion was presented by the Deputy Minority Whip, Mr. George Ozodinobi.

During discussions on the motion, Ozodinobi highlighted the constitutional importance of leveraging the nation’s resources to foster prosperity. He pointed out that lives and revenues have been lost “due to the government’s inability to recognise, regulate, and control artisanal refining of petroleum products,” a practice he noted has been prevalent in the Niger Delta for decades.

The Labour Party leader recalled that in 2016, “The Federal Government proposed the integration of artisanal refiners into mainstream oil and gas operations to encourage more local content in the industry and to advance the use of home-grown technology in petroleum refining in the region.”

Ozodinobi lamented that after seven decades of significant environmental degradation in the Niger Delta, policymakers continue to neglect support for artisanal refining and the establishment of local technologies to combat Nigeria’s energy poverty.

He condemned the negative labeling of indigenous artisanal refiners as “oil thieves” and observed that “deploying the Nigerian Navy and other security agencies to destroy artisanal refineries further degrades the environment that sustains Niger Delta communities.”

According to the lawmaker, the disregard for local refiners “has left Nigeria with four moribund refineries for decades, making it a major exporter of crude oil but a chronic importer of refined petroleum products.”

He added that this situation is exacerbated by ongoing fuel crises and alleged sabotage of the Dangote Refinery.

Ozodinobi called for Nigeria to prioritize the promotion of indigenous technology, referencing successful examples from advanced nations like Japan, the United States, and China.

After a voice vote, the motion received unanimous support from members. Deputy Speaker Benjamin Kalu, who presided over the session, urged the Nigerian Upstream Petroleum Regulatory Commission to establish a regulatory framework for formally integrating artisanal refiners into the oil production value chain.

Additionally, the House mandated its Committees on Petroleum Resources—Downstream, Upstream, and Midstream, as well as Local Content, to ensure compliance and report back within four weeks for further legislative action.