Baring any unforeseen developments in the local and international economy, the 200,000 barrels per day BUA Petroleum Refinery will commence full commercial operation in 2024, after a groundbreaking ceremony billed for May this year.
Giving graphic details on the economics of Nigeria’s second largest petroleum refining complex in Lagos at the weekend, Executive Chairman of BUA Group, Abdul Samad Rabiu, said the project was initiated against the backdrop of the huge amount of foreign exchange the nation spends importing refined petroleum products into the country.
Rabiu who defended the sustainability of his Group’s funding inside the various sectors of the financial system, said the refinery venture will meet the authorities’s financial diversification schedule in the long run, as new gas standards preserve to conform consistent with the weather disaster.
He said the mission is being built with the quality of generation from Axens of France rated as one of the pleasant in the global in petroleum refining industry and would allow the nation keep big amounts of foreign exchange further to growing hundreds of jobs for the citizens.
“ Nigeria consumes over 50million liters of fuel each day and over 90 of this is imported with about 35 percent of the u . S . A .’s scarce overseas foreign money spent on imported products. This, coupled with low crude charges because of low demand springing up from the Coronavirus pandemic gives us huge opportunity to put money into initiatives that would help us conserve more budget, leveraging the low value era being deployed by means of Axens of France providing us a ways decrease price than what it must be” He stated.
Rabiu further referred to that the refinery’s entire marine infrastructure and nearness to its feedstock will permit it keep extra on haulage, because it goals nearby, regional and other land -locked markets in Africa, bolstered via its specific area and opportunities rising from the AfCFTA.
According to him, the economics of the venture are a ‘no-brainer’. Contract for the development of the refinery turned into signed in Paris between BUA Group Chairman Abdulsamad Rabiu, and the CEO of Axens, Jean Sentenac, in a ceremony presided over through France’s Minister Delegate for Foreign Trade and Economic Attractiveness, Franck Riester.
While calling at the Federal Government to enhance the country’s working environment thru liberalization of cement production to allow greater manufacturers take advantage of the new Africa Continental Free Trade Agreement (AfCFTA), to export greater to an expected 1.3billion humans across the continent, Rabiu said the continental financial bloc remained a vital strategy to broaden the kingdom’s manufacturing region presently in comatose.
He in addition advised the Nigerian stakeholders to insist on full implementation of rule of beginning principle to keep away from the united states being changed into a dumping floor for goods manufactured outdoor the continent.
He stated “if we are capable of manufacture, we are able to have a massive market of approximately 1.3billion humans to sell to inside the trading bloc related to all fifty five countries.
On the alternative hand, if we fail to fabricate, then we can be turning our u . S . A . To a dumping floor for other countries because we’re all signatories to an agreement to do away with all tariff boundaries to change inclusive of movement of goods and people.”
The BUA Group’s Executive Chair lamented a scenario wherein Europe and other continents have greater get right of entry to to Africa than Africans themselves, stressing that the AfCFTA gives Nigeria an large leverage to export more to other African countries than it’s far doing currently.
On the growing value of constructing materials within the usa, he stated Nigeria has turn out to be the most costly united states of america in Africa to construct a house, noting that selling cement at N3000 in step with bag turned into unfair to the citizens of the country.
“It is greater expensive to build in Nigeria than every other united states in Africa.” He lamented