Ijeoma Agudosi/Hyacinth Chinweuba
The Independent Petroleum Marketers Association of Nigeria has opened discussion on its proposal to build two refineries in the country.
JP Morgan and KPMG have been engaged by the association to ensure realisation of the projects estimated to cost $3bn (about N600bn at N200 per dollar).
It will be recalled that IPMAN last year indicated intention to construct two refineries in Kogi and Bayelsa states.
Factional President of IPMAN, Mr. Chinedu Okereke, said in Abuja that the association was in talks with the world’s leading financial institution and the renowned audit/advisory firm in a bid to get the two refineries built and running.
He said IPMAN has met with officials of the Central Bank of Nigeria, informing the regulatory institution that it was set to bring in funds for the project and would need guidelines on how to go about it.
Okereke said, “When we came on board, we attracted some foreign investors and we all went to the government of Kogi State. We had a proposal for two refineries and we are still working on it. If not for the general elections, we would have gone far. The government of Kogi State gave us over 1,380 hectares of land for the refinery.
“We have done the perimeter survey of the land and the paperwork for the project is ongoing. As I speak with you, we are talking with JP Morgan and KPMG. Last week, we wrote to the CBN telling them that we want to bring in funds and they gave us the guidelines on how to go about it. About $3bn is needed for this project.”
Also speaking in Abuja at the weekend, the managing director of Capital Oil, Ifeanyi Ubah, appealed to Nigerians to support the deregulation of the oil and gas sector, noting that this would boost the refining of oil in Nigeria as well as reduce the prices of petroleum products across the country.
Ubah said, “I urge President Buhari to take a bold step and deregulate the oil sector. He is not a stranger to the sector having been a former minister of petroleum. He will be respected if he takes the step because there is no point in paying subsidy when Nigerians are not benefiting from it.
“The President will be doing the right thing if he deregulates the sector so that the product will be sold at a cheaper rate in the future. I have always been of the view that we should deregulate so that we can cut out corruption, but unfortunately, Nigerians didn’t take it from former President Goodluck Jonathan.”