Home News Nigeria needs local crude oil refining technology to boost economy, revenue—Senate

Nigeria needs local crude oil refining technology to boost economy, revenue—Senate

by Business News Report

Senate has said that Nigeria urgently need local refining of petroleum products in order to boost the nation’s revenue. It however called on the federal government to take prompt action through the introduction of regulatory policies to prevent disasters associated with the illegal refining of crude oil in Nigeria. Speaking on the explosion at the site of an illegal refinery in Abaezi community, Ohagi-Egbema Local Government Area of Imo State, following a point of order raised on the matter, the President of the Senate, Senator Ahmad Lawan who underscored the need for local Refineries, said, “We cannot in any true sense benefit in a practical way from the oil and gas resources we have in Nigeria if we don’t add the value of refining it.

“Of course, we know what it means as at today, even though crude oil sells for higher, but because we have to import the refined products, the increase in price at the international market does not seem to confer any advantage to our country. So, that speaks volumes that we have to refine our petroleum products in Nigeria if we would have to enjoy the benefits of an endowment like that. And for Nigerians who get engaged and involved in this kind of illegal refining activities, I think government will have to take action. It is for government to come to decision on how we should be able to deal with this illegal activities. On one hand, we may encourage private participation, in fact, that is the best way to go. But illegal refining again, at the moment, is causing a lot of damage to our country. So, it is a very dicey situation, but we have to utilise the ingenuity of our citizens who are creative and innovative, but in a much regulated way, so that we don’t experience these kind of disasters.”

Resolutions of the Senate were sequel to a point of order raised by Senator Rochas Okorocha. Okorocha, while relying on order 42 of the Senate Standing Order, 2022 as amended, informed his colleagues during plenary that the incident led to the death of 110 persons. Okorocha who noted that the tragic incident has thrown the state into mourning, disclosed that the explosion was caused as a result of illegal refining. The lawmaker, called on the Federal Government to consider a legislation to provide for local technology for artisanal and modular refinery considering the gap in Nigeria’s refining capacity. 

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