Professor Yemi Osinbajo, Vice President of Nigeria has assured that the Federal Government will continue to incentivize private investors to encourage more investments across all sectors of the economy.
Osinbajo gave the assurance during the inauguration of the multi billion dollars 300 million litres tank farm capacity built by Petrolex group, an indigenous oil and gas company located in Ibefun, Ogun State. Osinbajo opined that indigenous investors would be encouraged to strive in Nigeria which is part of the agenda of President Muhammadu Buhari led administration, “government is committed in providing adequate incentives to private investment operators in Nigeria.”
According to the Vice President, the government will soon announce a new interest rate specifically to encourage access to loan to the manufacturing sector with a view to boost economic activities, “already government is working out the modalities having realized that the manufacturing sector is key resetting the economy.”
He revealed that he has been directed by President Buhari to develop a framework that will provide access to fund to manufacturer’s at affordable rate such that the sector will be motivated to boost capacity to trigger economic activities. In his words, “government will continue to create enabling environment for industrial sector to thrive.”
Osinbajo commended Petrolex group for taking such bold initiative to develop an integrated energy mega city capable of transforming the oil and gas landscape of the country. The investment will help the country meet its petroleum products need in 2018 and reduce by 20 per cent domestic petrol need by first quarter of 2019. The commissioning is a clear testament of the company’s vision and shows also that Nigeria is ready for business, the “facility will not only ease petroleum products supply and distribution but will create jobs and trigger economic activities across the state.”
On his own part, former president, Chief Olusegun Obasanjo in his short remark canvassed for a robust public, private sector collaboration. Obasanjo observed that no private business can thrive without support from the public sector. He urged government at all level to support indigenous companies in Nigeria to strike in order to develop the socio-economy environment.
Dr Maikanti Baru, Group Managing Director (GMD) of the, Nigerian National Petroleum Corporation (NNPC), was of the view that the investment is a clear testimony of ingenuity of indigenous companies and demonstration of capacity to support government reform drive. Baru promised to fully support the company to realize its set objectives as the investment will go further to achieve its target of ensuring uninterrupted products distribution.
The GMD used the occasion to assure the nation that government has no intention to increase pump price of petrol. He said the unfounded fear was responsible for hoarding of fuel by marketers resulting in the resurgence of queues at filling stations nationwide. Henceforth, he said “the Department of Petroleum Resources (DPR) will continue monitor product sales across the country and dispense free of charge products hoarded by marketers.”
The Chairman of the company, Segun Adebutu disclosed that the facility will host a 250,000 barrels per day capacity refinery, estimated to cost $3.5 billion, a lube plant which a cost was put at $8.5 million.
Adebutu made it known that a Tank Farm with 300 million capacity to turnover 600,000 million litres/month and a Gas Processing Plant to produce 50,000 Liquefied Petroleum Gas, LPG cylinders to make LPG gas more adorable as well as MarshalingYard, with 4,000 capacity trailer park in Ibefun would be located within the complex. “The Petrolex Mega Oil & Gas City is conceptualized to enjoy the distinction of housing some of the most advanced oil and gas infrastructures in Africa.”
He revealed further that the first phase of the complex will comprise of the 300 million liters Ibefun Tank Farm, residential quarters, army barracks, 30 loading gantries, and a 4,000 truck capacity trailer park with accommodation for drivers.
According to the Petrolex boss, “this legacy investment of over $330 million to date, as audited by PWC, will be the largest products storage tank farm in sub-Saharan Africa and will create at least 2,000 jobs.” As Adebutu claims; “hopefully, by the time we have done it, it will be at least 70/80 per cent indigenous. It will actually help the economy of the town itself. It’s not just about direct employment. We’re setting up a city here.” The 6 billion dollars investment will make impact in the downstream up to upstream sectors of the Nigerian oil and gas sector including powers sector. The project when completed, will reduce the congestion on Apapa by 70 per cent which will make the company a one stop energy provider not only in Nigeria but in the sub-Sahara Africa.
Among prominent personalities who graced the occasion were Governors of Oyo and Benue states, Abiola Ajimobi and Samuel Ortom, Senator Dino Melaye represented Senate President, Dr Bukola Saraki. Other dignitaries include traditional rulers and representatives of state governments across the country.