L
LequteMan
Guest
The Federal Government is considering co-opting local ‘illegal’ refiners in the oil producing communities as shareholders in its proposed modular refineries, according to a presidency source.
Reports say the core of the plan is to integrate the illegal refiners, rather than a scorched-earth policy that seeks to eliminate the operations of such refiners.
“Under the plan being considered in the presidency, the Federal Government could supply crude to the local refineries at a reasonably considered price, as an incentive to stop the current practice whereby the illegal refiners vandalise and steal the crude.
“Another important component of the plan under consideration is to involve the current illegal refiners and their communities as shareholders while the NDDC and the NSIA will also hold substantial holdings/equity sufficient to make the smaller refineries operational as a business and a going concern.
The source however explained that there were a number of significant hurdles to be crossed especially issues around the engineering and technical ramifications of such a conversion, besides figuring out the financial models that would be workable and profitable.
The source explained that this was part of the resolutions made at a meeting between Vice President Yemi Osinbajo and Niger Delta stakeholders recently.
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Reports say the core of the plan is to integrate the illegal refiners, rather than a scorched-earth policy that seeks to eliminate the operations of such refiners.
“Under the plan being considered in the presidency, the Federal Government could supply crude to the local refineries at a reasonably considered price, as an incentive to stop the current practice whereby the illegal refiners vandalise and steal the crude.
“Another important component of the plan under consideration is to involve the current illegal refiners and their communities as shareholders while the NDDC and the NSIA will also hold substantial holdings/equity sufficient to make the smaller refineries operational as a business and a going concern.
The source however explained that there were a number of significant hurdles to be crossed especially issues around the engineering and technical ramifications of such a conversion, besides figuring out the financial models that would be workable and profitable.
The source explained that this was part of the resolutions made at a meeting between Vice President Yemi Osinbajo and Niger Delta stakeholders recently.
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