Former President, Olusegun Obasanjo, has urged for an increase in the 13 per cent derivation accruing to oil producing states, saying the present arrangement should be a point of departure for future negotiation.
Obasanjo addressed Monday during the inauguration of the Crude Distillation Unit (CDU) of the $1 billion Azikel Refinery in Obunagha, Yenagoa Local Government Area of Bayelsa State.
He also supported calls for oil producing states and communities to get a bigger slice of the resources extracted from their land and praised Bayelsa State Governor Douye Diri for backing the refinery project.
“Thirteen per cent is the starting point. You can go on talking. “The most important thing is that you have made good use of even the little you have received,” stated the former president.
The Azikel Refinery is a subsidiary of the Azikel Group and is projected to generate 2.5 million litres of fuel daily, two million litres of diesel and other petroleum products.
Obasanjo commended the head of Azikel Group, Azibapu Eruani for driving the project and urged him to ensure the completion of the project within the next 12 months.
He recalled laying the cornerstone for the refinery eight years ago and said he was pleased with the progress since his last trip to the site.
He also commended the involvement of the African Finance Corporation (AFC) and African Export-Import Bank (Afreximbank) to the project and appealed for continued financial and technical support.
Completing the refinery within the projected timeframe could present a chance to further boost its capacity,” he said.
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Obasanjo also congratulated Diri on what he termed as excellent use of funds accruing to Bayelsa State, saying developments across the state are indications of growth.
Refinery To Accelerate Industrialisation In Niger Delta
Eruani, who spoke at the ceremony, said the refinery would push the industrialisation of Bayelsa and the Niger Delta as a whole, while putting the region as a prominent player in Nigeria’s petroleum industry.
He hailed the installation of the crude distillation unit as a major milestone in the completion of the refinery which he said was planned to ensure that the Niger Delta was an active player in the oil and gas value chain.
Eruani also applauded President Bola Tinubu’s support for local refineries, stating that their activities were in sync with the Federal Government’s goal of increasing the availability and affordability of petroleum products.
He appreciated the Bayelsa State Government, the AFC and the Afreximbank for their support for the project.
Diri Re-iterates Call For More Oil Revenue Share
In his remarks, Governor Diri said the refinery represents a big stride toward addressing the age-long complaints of oil producing towns about their little participation in the petroleum business.
He said that communities that provide Nigeria with crude oil should have more say in the management and processing of the country’s natural resources.
Diri condemned the Land Use Act and the present 13 per cent derivation structure, saying oil-producing states deserved a larger part of the profits of resources removed from their borders.
“We have protested and fought as people of the Ijaw ethnic nationality because we believe God gave us something in our land but we are not benefiting from it,” the governor added.
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He noted that the region was not attempting to take all the benefits for itself, but wanted to participate more completely in choices about its resources.
We don’t want to take everything for ourselves. We only want to be co-players in the way it is done. “Thirteen per cent is not enough for the states,” Diri remarked.
The governor said the refinery was an opportunity for the people of Bayelsa to be more active in the petroleum industry and called on young people to acquire the skills to profit from the project.
He also said Africa’s natural resources needed to be processed within the continent, noting that local refining and industrial development were vital to maximise the economic benefits of its riches.
Diri appealed to oil businesses operating around Gbarain and Obunagha localities to support the project by renovating the road leading to the refinery.
Project Welcomed by Stakeholders
“Daru Owei, a board member of Azikel Petroleum and Ibenanaowei of Ekpetiama Kingdom and chairman of the Bayelsa State Council of Traditional Rulers, King Bubaraye Dakolo, also commended Eruani for the initiative.
Both claimed the refinery may boost the economic prospects of Bayelsa State, the Niger Delta and Nigeria, through more industrial activity and local processing of crude oil.
The startup of the crude distillation unit is another milestone in the development of the $1 billion refinery, which is projected to increase domestic petroleum refining and enhance the region’s role in the oil industry.
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