FG to woo modular refinery investors with tax waivers

The federal government says investors in modular refineries will get tax relief and other waivers to reduce their costs.

Speaking at the ongoing Nigerian International Petroleum Summit on Wednesday, Rabiu Suleiman, a government official, said the federal government is ready to assist investors.

Sulaiman is the senior special adviser on refinery, downstream and infrastructure to the minister of state for petroleum resources.

He said modular refineries will address concerns of daily growing consumption of premium motor spirit and reduce fuel importation.

“Right from cost duty waivers and tax relief, discussions are advanced already by the government to assist investors in modular refineries and the government is determined to ensure maximum local production of petroleum products in the country,” he said.

‎”I am the person driving the modular refinery issue in the ministry. Modular refineries have very long impact. We have teething problems and we are putting up necessary incentives to ensure investors in modular refineries take off smoothly.

“At the Nigerian National Petroleum Corporation, we have had an advanced discussion with the federal ministry of finance and the authorities of the Nigerian Customs Service, to support these investors.

“Also, from the modular refineries, there is a lot of market for diesel and we are discussing with the federal ministry of transport on ensuring that the speed boats being used in the Niger Delta get diesel engines.”

Suleiman said the federal government has contacted a number of institutions including the Central Bank of Nigeria, Bank of Industry and International Finance Corporation for funding.

“On financing, we have engaged the government; the central bank; we have engaged the Bank of Industry; we have engaged Sovereign Wealth Fund; we have engaged The Infrastructure Bank. We have engaged a lot of them, including the IFC and the rest,” he said.

“We have all worked with them and they all promised to make contributory finance into that. Only two weeks ago, we engaged with the NDDC the MD made a commitment that they were going to see how they could put in some money even if it means to pick up an equity in one or two or three of the refineries.

“State governments have said they want to be a part. So, we are encouraging a lot of financing. In the next two weeks, we intend to call for an investors’ engagement forum that will address some of the funding arrangements that we intend to bring on board.”