Former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr Dakuku Peterside, who was once Chairman of the House of Representatives Committee on Petroleum (Downstream), has urged the Federal Government to implement policies that incentivise investment in local refining capacity.
Peterside stated this in Lagos during an interview with the News Agency of Nigeria (NAN) on Wednesday, adding that Nigeria needs to attract private capital to crude oil refining due to its significant impact on job creation and the economy.
“We must be mindful of the signals we send; otherwise, no one will invest in the sector. Refining is a low-margin business exposed to global market fluctuations,” Peterside said.
The former lawmaker explained that low-interest capital and other incentives would go a long way to support investors without jeopardising national interests.
Dakuku also advocated for government support and policy-level backing for modular refineries through the provision of security and a conducive policy environment for investors.
He noted that genuine investors would not opt for an unsafe environment over a safe one.
He urged policymakers to ensure regulatory consistency, stating, “We cannot use different measures for different businesses and expect investors to take us seriously. Investors are sensitive to inconsistencies.
“The government should minimise political risk and enhance the ease of doing business.”
On the Dangote refinery uproar, Peterside pointed out issues of regulatory clarity and policy irregularity, asking, “What are the regulations? What is the government’s position on in-country refinery investment?”
He appealed to investors to assess their risk appetite before investing and cautioned that inconsistent government policies and regulatory enforcement could discourage investment.
Peterside said foreign investors would be drawn by the treatment of local investors, adding that investors would go where they are welcomed.
He added, “Let us be firm and clear on fundamentals, collaboration, regulatory regimes, policy targets and operational excellence.”