House Moves to Boost Investment in Refineries
From Kunle Akogun in Abuja THISDAY | Feb.18.2010

ABill seeking to compel existing and prospective oil producing companies in the country to commit a substantial portion of their investment into the development of refineries yesterday scaled through the Second Reading.

Titled “a Bill for an Act to prescribe investment in Petroleum Refineries as a condition for licensing and operation of oil producing companies in Nigeria, and matters concerned therewith”, was subsequently referred to the House Committee on Petroleum for fine-tuning before its passage into law.

If eventually passed, the Bill, sponsored by Hon Iyiola Adedeji (AC, Lagos), will make it mandatory for all owners of Oil Mining Licences (OML) and Oil Prospecting Licenses (OPL) in the country to invest in building new and/or help in the maintenance of existing refineries as a way of checkmating the on-going inadequacy of refined petroleum products in the country.

Leading the debate on the Bill, Adedeji said the Bill was informed by the need to compel oil prospecting and producing companies in the country to give a little of their earnings back to the nation’s economy.
He said it is not enough for oil companies to just prospect for oil and export the crude only to bring back the refined product and resell at exorbitant prices to Nigerians from whose soil the crude was originally mined.

Adedeji said the passage of the Bill would also be a right step in the direction of tackling the perennial fuel scarcity and its high cost in the country.
Rising in support of the Bill, Hon Abike Dabiri-Erewa said if passed, the Bill would correct some of the challenges in the country’s oil sector.

Opposing the Bill, Hon Ike Chinwo (PDP, Rivers) said instead of seeking to compel oil companies to invest in any venture outside their interest, the House should consider introducing certain incentives that would encourage massive investment in refineries.
Hon Halims Agoda however wondered if the law when passed would encourage investors in the oil sector.
When the Speaker, Hon Dimeji Bankole posed the question after an exhaustive debate, those in favour of the Bill going through the Second Reading overwhelmingly carried the day.

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