Dr Frank Jacobs, President, Manufacturers Association of Nigeria (MAN), has called for the privatization of the country’s four refineries to ensure more private sector participation and to make them productive.
Jacobs told news reporters on Friday in Lagos, South-West Nigeria, that privatization of the four refineries would shore up their production of refined products from the current combined capacity of 445,000 barrels per day to over a million.
“Going by the recent projection of the Dangote Group (a private company) to produce 650 thousand barrels per day, should the refineries be privatized and others built, the multiplier effect will run into millions.
“The projections should be able to meet the nation’s demand and for exports and its impact will be massive on the economy.
“The export will also boost foreign exchange and for me, anything to improve foreign exchange is a welcome idea,” he said.
Jacobs added that the step by the Dangote Group to own a refinery would also result in an automatic boost in the confidence of would-be investors upon completion and give a new look to the sector.
He lauded Afrexim Bank for its 650 million dollars loan that ensured the success of the project.
The loan is structured as a seven-year facility inclusive of a five-year moratorium, according to the facility terms read out during the signing.
Nigeria currently has four refineries, two in Port Harcourt (KRPC), one in Kaduna (KRPC) and Warri (WRPC) with combined capacity of 455,000 barrels per day.