ARPHL: Petrol Subsidy Removal Will Boost Investment in Local Refining Capacity
Peter Uzoho
African Refinery Port Harcourt Limited (ARPHL) has lauded the removal of petrol subsidy by President Bola Tinubu, saying the policy would help to boost investments in domestic refining capacity
The company is the Nigerian National Petroleum Company Limited (NNPC) Joint Venture (JV) partner in the 100,000 barrels per day refinery under construction within the Port Harcourt Refinery Complex, Rivers State.
Chief Executive Officer of African Refinery, Mr Omotayo Adebajo, in a statement described the elimination of subsidy as a bold action necessary for the recovery and growth of the Nigerian economy and development of some critical sectors.
Adebayo also called on Nigerians to be patient in the face of the immediate hardship caused by the subsidy removal and to support the president’s strategic announcement, which he said had been long overdue.
While acknowledging that the subsidy removal has resulted in higher pump prices, Adebayo said he strongly believed that in the long run, the president’s action would boost investment in local refinery capacity.
As part of the short-term benefits, he said that subsidy removal would free up money that could be immediately channelled by the new government into high impact projects that would benefit a vast majority of Nigerians.
Adebayo also called on Tinubu to treat governance as a continuum by deepening the previous government’s commitment to supporting local refinery projects made by Muhammadu Buhari through NNPC’s strategic equity investment in African Refinery’s 100,000 bpd project in Port Harcourt and in the recently inaugurated Dangote Refinery in Lagos.
He noted that the projects were critical to Nigeria’s drive to stop importation of fuel and guarantee energy security and could only succeed with the continued support of the federal government.
The CEO therefore reiterated the call that had been made in many circles for the new government to continue to support private sector investors especially in the areas of access to feedstock and government backed low interest finance.
He stated that his company’s refinery project which was on track to be completed during the tenure of the new administration would significantly increase local production of refined petroleum products.
