Former legislator calls on FG to adopt policies aimed at attracting investors in refineries

Dr. Dakuku Peterside, former Chairman of the House of Representatives Committee on Petroleum (Downstream), has called on the Federal Government to implement policies that encourage investment in local refining capacity.

Peterside, in an interview Wednesday in Lagos, stressed the need to attract private capital to oil refining because of its significant impact on the economy and job creation. We need to be aware of the signals we are sending; otherwise, no one will invest in the sector.

“Refining is a low-margin business, exposed to global market volatility,” Peterside said, emphasizing that investors require support in the form of low-interest capital and other incentives without compromising national interests.

The former director general of the Nigerian Maritime Security Agency (NIMASA) also advocated for government support and policies in support of modular refineries.

Peterside stressed the importance of ensuring a safe and enabling political environment for investors, noting that no true investor would choose an unsafe environment over a safe one.

He called for consistency in policy and regulation, saying: “We cannot apply different measures to different businesses and expect investors to take us seriously. Investors are sensitive to inconsistencies. The government should minimise political risk and increase the ease of doing business.”

Referring to the situation at the Dangote refinery, Peterside pointed to issues of regulatory clarity and policy inconsistency, asking: “What are the regulations? What is the government’s position on investment in refineries in the country?”

He advised investors to assess their risk appetite before investing and warned that inconsistent government policies and regulatory enforcement could discourage investment.

Peterside said the treatment of local investors would send a signal to foreign investors, adding that investment would go where it was welcome.

He added: “Let us be firm and clear on fundamentals, collaboration, regulatory regimes, policy objectives and operational excellence. Unilever Nigeria increases profit by 61% to N4.437 billion