The Women in Energy Network (WIEN) has urged the federal government to explore the encouragement of modular refineries as a means of boosting local refining capacity of petrol.
The association in its position on the downstream oil sector which was addressed to the chairman, Senate Joint Committee on Petroleum Resources also stated that government should pursue a deliberate policy of encouraging women participation in local refining by mandating 20-30% women participation in the shareholding structure of modular refineries
The position which was signed by its president, Mrs Funmi Ogbue, said it is worrisome that despite Nigeria’s significant oil wealth, the country imports around 90% of the refined Premium Motor Spirit (PMS), saying it does not have refineries capacity.
According to them, “It is extremely rare for major oil producers to import PMS in such quantities. Nigeria is one of OPEC members besides the Republic of Congo and Equatorial Guinea that still imports petroleum products at all.
“Nigeria’s four refineries have been poorly maintained for decades and operate at a fraction of their actual capacity.
“The federal government should not spend any additional funds on maintaining the refineries but should undertake road shows, investment drives, and other necessary actions to facilitate the privatisation or outright sale of the existing refineries while seeking to promote investments in new refineries like the upcoming Dangote Refinery.
“It therefore called for a level playing field in the oil and gas industry, stressing that improved governance and transparency would strengthen public and investor confidence in the sector.It expressed concern that since the discovery of crude oil in Nigeria, several issues have plagued the industry from dwindling oil and foreign exchange reserves, lack of consistent fiscal strategy, among others.
“WIEN joins other industry stakeholders to advocate for an open, transparent, and free market environment with clear rules and regulations guiding competition, consumer protection, health, safety, quality, and the protection of the environment.
“It however commended the federal government and its relevant Ministries, Departments, and Agencies (MDAs) for some laudable steps taken towards repositioning the downstream sector for greater efficiency but urged the National Assembly to work with the executive towards the full deregulation of the sector.
“While we advocate for the full deregulation of the downstream sector, we are equally concerned about the impact that deregulation will have on transportation and prices of goods and services when crude price goes up considering that women remain at the bottom of the pyramid as small-time traders and farmers.”
It stated that there is an urgent need for necessary changes to existing laws and legislation in the oil and gas sector.
Such existing laws, it said include Section 6(1) of the Petroleum Act 1969 and Section 7(a) and (d) of the Petroleum Products Pricing Regulatory Agency (PPPRA) Act 2003.
