April 20, 2024
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Nigeria: NAE Advise Government to Divest 51% Equity in Refineries

Nigerian Academy of Engineering (NAE) has called on the Federal Government to divest its 51 per cent equity in refineries. The president of the academy,  Prof. Azikiwe Onwualu, made the submission yesterday in Abuja. He said the move would save foreign exchange, as well as improve local consumption and export.

The suggestion he noted, is a sure way to raising capital from the private sector for their upgrade and optimal performance at 445,000 barrels per day (bpd).

Onwualu applauded the recent presidential directives geared at strengthening the petroleum industry. The policy if well implemented, the experts suggested, will boost the oil and gas industry for better production.

“In addition to commending the directives, the NAE further suggests that the government should consider directives covering the rapid improvement of our gas reserve base so that more of the often-quoted gas volumes can be certified and become bankable,” he stated.

The three presidential initiatives include fiscal incentives for related projects, reduction of contract costs and timelines, as well as promotion of cost efficiency in local content requirements.

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