Lack of funds, feedstock, hinder construction of 32 refineries

AS Nigeria continues to record high level of expired refinery licences, experts, Tuesday, identified lack of funds and feedstock, as factors militating against the construction of new plants.

The experts, who expressed their positions in different interviews with Vanguard, said such investors have the right to reapply for the renewal of their licences.

Specifically, in an interview with Vanguard, Lead Promoter, EnergyHub Nigeria, Dr. Felix Amieyeofori, said: “The investors encounter many problems, including lack of funds and feedstock. But the good thing about it is that they have the right to reapply.”

Similarly, in another interview with Vanguard, former Managing Director, Niger Delta Petroleum Resources, Dr. Layi Fatona, said: “conscientious focus and determination are required in the pursuit and delivery of any project in the Nigerian airspace.”

He added: “There is no capital long enough and not much of equity is available to pursue refining projects.”

Meanwhile, the Department of Petroleum Resources, DPR, has denied revoking 32 refinery licences in the country.

Some publications, not Vanguard had erroneously reported that the agency revoked the licences recently.

But in a statement obtained by Vanguard, DPR, stated: “We wish to clarify that DPR did not revoke any refinery licence. Refinery licence like our other regulatory instruments has validity periods for investors to attain certain milestones.

“This implies that after the validity period for the particular milestone, the licence becomes inactive until the company reapplies for revalidation to migrate to another milestone. This does not in any way translate to revocation of the licence of the company.”