Cabals making billions from petrol imports hindering local refining- IPMAN

The Independent Petroleum Marketers Association of Nigeria (IPMAN) says cabals benefitting from petrol imports as well as bureautic bottlenecks hinder local refining in Nigeria.

Ukadike Chinedu, public relations officer (PRO), IPMAN said this in an interview with the Punch.

He noted that there are capable local and international investors who can handle Nigeria’s oil refineries.

He advised the government to prioritise fixing its oil refineries, adding that this would reduce the impact of instability, in the international market, on the country.

“So why don’t we hand over some of these refineries or partner those who know how to utilise them. We have expatriates, both Nigerians and foreigners, who can handle these things, but the bureaucratic bottlenecks or those cabals who make billions from petrol imports, will not allow this,” Chinedu said.

He added that oil marketers have several times considered building modular or large-scale refineries.

According to him, 11 companies were pre-qualified to build refineries in Nigeria.

”And out of that 11, it is only one or two that we are hearing about currently, the one in Anambra State and that of Dangote,” he said.

Chinedu added that the companies that were pre-qualified have not delivered, “except Dangote who is nearing completion with his own”.

“They complain of so many challenges ranging from bureaucratic bottlenecks, government policies that are not friendly to the establishment of such facilities and the issue of security,” he said.

“This is so because most of these companies want to be very sure that whatever investment they are putting in Nigeria is properly taken care of and they are sure of it.”

Chinedu further said this is because investors avoid a situation where they will put money into Nigerian businesses and end up incurring loss.

“You are aware that in this country some years ago, we had the likes of Dunlop and Michelin and they were all producing vehicle tyres in Nigeria,” he said.

“But insecurity and policy inconsistencies have driven all of them away. These are factors preventing investors from coming into this country. There is also the concern of power supply, which is one of the basic things.”