FG seeks integration of artisanal, modular refineries to curb illegal activities in Niger Delta

Vice-President Yemi Osinbajo says the integration of artisanal and modular refinery operators into mainstream oil and gas sector will curb illegal activities in the Niger Delta region.

He said this while delivering an address on Tuesday, at a virtual national summit on the Integration of Artisanal and Modular Refinery Operations in Nigeria.

In a statement, Laolu Akande, Osinbajo’s spokesman, quoted the vice-president as saying the integration will advance the use of home-grown technology in the refining of petroleum products.

In 2016, Osinbajo embarked on a tour of oil-producing communities in the Niger Delta, in a bid to address lingering issues in the region.

He said one of the concerns was on how to handle the proliferation of artisanal refinery and their negative impact on the environment.

Osinbajo said an integration of both refineries will resolve illegal oil activities, adding that “these artisanal refiners will be seen as investors and considered for strategic equity partnerships with technical and financial partner”.

“We are confident that the integration of artisanal and modular refinery operations into the oil and gas sector will not only promote the inclusion of more local content in the industry; it will advance the use of home-grown technology in the refining of petroleum products and also curtail illegal oil activities in the Niger Delta regions,” he said.

“One of the nagging issues we were confronted with during my tour was how to deal with the proliferation of artisanal refinery and its attendant negative environmental impact. Our solution was to promote the establishment of modular refineries.

“This vision is hinged on the commitment of this present administration to develop the region and ensure that the people of the region benefit maximally from the wealth of their land. Indeed, the new vision speaks to a progressive partnership between the federal government, state government, private sector, and the local communities.”

Osinbajo said the transition from artisanal to modular refineries has been delayed because of the operators’ expectation that the process will be fully underwritten by government.

He said the government is working towards a private sector-led partnership with other relevant stakeholders.

“However, what this framework envisages is a private sector-led partnership with equity participation from the state government or its agencies, registered local cooperative societies and the integration of regional refinery stakeholders, with the private investor having majority equity,” he said.

“We are confident that the integration of artisanal and modular refinery operations into the oil and gas sector will curtail illegal oil activities in the Niger Delta regions.

“It will also promote the availability of petroleum products, stabilize prices, eliminate shipping costs and provide employment opportunities for the youths in the region and Nigeria in general.

“We recognize that with enough artisanal and modular refineries in the country, we should be able to conserve foreign exchange now utilized for the importation of petroleum products and promote socio-economic development.

“The resultant proliferation of employment opportunities will also have the effect of curbing youth restiveness which is largely driven by a dearth of socioeconomic opportunity. With most of the youth engaged in productive endeavours, the region will be able to turn a new page in its history.”

The summit was convened by Ita Enang, the senior special assistant to the president on Niger Delta affairs.

In attendance were Clem Agba; the minister of state, budget and national planning, Godswill Akpabio; the minister of Niger Delta affairs, Ogbonnaya Onu; minister of science and technology, and Timipre Sylva; minister of state, petroleum resources.

Others include Zainab Ahmed; minister of finance, budget and national planning, and Mahmood Abubakar; minister of environment.