Niger Delta Deserves More than 13% Derivation, Says Obasanjo, Flags-off CDU at $1bn Azikel Refinery

• Eruani: project will kick-start region’s industrialisation 

•Gov Diri: refinery justifies agitation against oil injustice

Former President Olusegun Obasanjo on Monday advocated an increase in the 13 per cent derivation to oil producing states in the country, stating that the present benchmark is a starting point that can be negotiated upwards.

Obasanjo spoke at a ceremony to flag-off the Crude Distillation Unit (CDU) of Azikel Refinery at Obunagha in Yenagoa Local Government Area of Bayelsa State.

The one-billion-dollar refinery project, owned by Azikel Petroleum under Azikel Group, is expected to produce 2.5 million litres of fuel and two million litres of diesel daily among other petroleum products.

Obasanjo lauded Azikel Group President, Dr. Azibapu Eruani, for initiating the refinery project and urged him to ensure its completion within the next 12 months.

He expressed appreciation to the refinery’s technical and engineering team as well as African Finance Corporation (AFC) and Afrexim Bank for their support to the project. He advocated more support to ensure its completion.

Obasanjo also lauded Bayelsa State Governor, Senator Douye Diri, for supporting the project.

Obasanjo said whenever Eruani spoke to him about the project, he always mentioned the governor’s contribution.

He stated that the governor had put into proper use funds accruable to Bayelsa, as evident in the numerous projects all over the state.

The former president said, “I have told Dr. Eruani that I will be officially 90 years by next year March. It means I will take the boarding pass soon. So, he has to make sure the project is completed before I exit.

“Governor, I want to thank you most sincerely.  Every time Dr. Eruani has spoken to me about this project, he has mentioned the critical role you have been playing and that is the way to go.

“You are right that the states and oil producing communities have not got a fair deal so far. Thirteen per cent is the beginning. You can continue to talk. The most important thing is that even the little you have received; you have used it well.”

Obasanjo added, “I want to express appreciation to those who have given the technical and engineering support for this project. When I came here (eight years ago), there was nothing like this, but now it has become a different thing.

“I want also to thank those two financial institutions, African Finance Corporation and the Afrexim Bank. My challenge to you, Dr. Eruani, is to ensure that the refinery is completed within the next 12 months. With this done, you can even double the capacity.”

Eruani stated that the refinery will kick-start Bayelsa’s and Niger Delta region’s industrialisation, recalling how Obasanjo laid the foundation for the refinery eight years ago.

He expressed delight at the former president’s presence for the installation of the CDU, which he described as the beginning of the completion of the refinery.

Eruani said the refinery was conceived to ensure that the Niger Delta became an active player in the oil industry, saying it is the second largest full-scale refinery in the country.

He hailed President Bola Tinubu for supporting indigenous refineries, saying they stand in alignment with the vision of the federal government to make petroleum products available and affordable to the people.

He also expressed appreciation to Diri as well as AFC and Afrexim Bank for their invaluable support.

In his remarks, Diri said the refinery justified the years of agitation by the region against the injustice in the oil industry.

He stated that as producers of crude oil, the people of the region deserved to be key players in the industry.

Diri, again, faulted the Land Use Act and the current 13 per cent derivation to oil producing states, and maintained that the region deserved more from their God-given resources as obtainable in other parts of the world.

He expressed delight over the establishment of the refinery, saying it will make the people of the state major players in the oil industry.

The governor charged Bayelsans to equip themselves to benefit from the project.

Diri also emphasised the need for Africans to process their own resources, saying it is the only way the continent can benefit from them.

The Bayelsa helmsman called on oil companies operating within the Gbarain/Obunagha area to complement the efforts of the state government by rehabilitating the road leading to the refinery.

He stated, “As people of the Ijaw ethnic nationality, we have protested and fought because we feel that God gave us something in our land but we are not benefiting from it. Others are benefiting and saw us as second class citizens. It has been a long journey to be part of what God has given to us under our soil.”

Diri said, “The Land Use Act is unfair. Surface resources belong to states but what lies underneath belongs to the federal government.  That law is obnoxious and not good for any just society.

“We do not want to take all to ourselves. We just want to be co-players in determining how it is done. Thirteen per cent is not enough for the states.”

Diri congratulated Eruani on behalf of the people of the state, while charging other youths to emulate the Azikel Group president.

In their separate remarks, a board member of the Azikel Petroleum, Dr. Daru Owei, and the Ibenanaowei of Ekpetiama Kingdom and Chairman, Bayelsa State Council of Traditional Rulers, King Bubaraye Dakolo, lauded Eruani for the project, saying it will impact positively on the economic fortunes of the state, the region, and the country.