The Nigerian Economic Summit Group (NESG) has stated that unless regulatory reforms, infrastructure development and investment in human capital development is prioritized, Nigeria may not reap the benefits of local crude oil refining.
It, however, listed potential benefits to include economic growth, job creation and reduced dependency on imports.
The economic think-tank in its latest report titled, “Domestic Crude oil refining in Nigeria, Macroeconomics and Tradeoffs,” said domestic crude oil refining should catalyse other sectors of the economy towards manufacturing, industrialisation and enhance the welfare of Nigerians.
It cited the case of Dangote refinery exporting Naphtha to Asia where goods produced with the product are further shipped to Nigeria as an example of how other countries would take advantage of local crude oil refining in Nigeria.
“Without addressing these underlying challenges and implementing necessary reforms, the reactivation of the midstream segment may fall short of its potential to drive transformative change in Nigeria’s oil and gas industry and foster sustainable economic development.”
“Failure to position Nigeria to capitalise on these opportunities by sticking to the status quo, the country would risk allowing other emerging economies to exploit them to fuel their economic growth process,” the NESG stated.
The NESG called on the federal government to ensure adequate crude oil supply which will reduce import and domestic crude oil pricing for local refiners to catalyse the allied benefits of local refining, to ensure that the country does not lose out on the socioeconomic benefits of local crude oil refining.
