The Managing Director and Chief Executive Officer of Oil and Gas Free Zone Authority, Dr. Noble Abe, has identified technical inefficiency as the major reason for premium motor spirit (PMS) or petrol importation in the country and advised the federal government to proffer lasting solutions to the problem.
While delivering a paper entitled, ‘Onne Oil and Gas Free Zone, Relevance and Opportunities,’ at a recent energy conference in Lagos, he stated that oil and gas free zones were the solution for some of Nigeria’s immediate problems, lamenting that Nigeria was the only oil producing nation in the world? still? importing refined products .
According to him, a visit to the Oil and Gas Free Zone in Onne would convince skeptics that the Free Zone could help resolve some of the country’s immediate problems, noting that over 100 companies currently do business in the Free Zone and over 30,000 people? were employed directly and indirectly by the activities of these companies.
Abe, who noted that the free zone was only dedicated to the oil and gas industry, added that it combines effectiveness of the private sector with support from the federal government.
He explained that it was designed to maximise the comparative advantage of Nigeria to Foreign Direct Investment (FDI) in the oil and gas sector, saying the zone was also a launching pad for growth in other sectors of the economy.
‘‘ The Free Zone is today recognised as a key incubator of the Nigerian content policy. It is also key to job creation, transfer of technology, skills acquisition and promotion of export and foreign exchange earnings. It is therefore a solution to some of the most pressing problems of Nigeria today.’’
He revealed that? the federal government spent not less than $10 billion annually in importing premium motor spirit (PMS) or petrol despite the country’s huge hydrocarbon deposits.
Abe opined that a country that has oil and gas reserves and three refineries, which have combined refining capacity of 445,000 barrels per day should not resort to fuel importation.
He noted that oil and gas apart from providing fuel, served as? important raw materials for production of different products.
“Unknown to many Nigerians, oil and gas is a very important raw material and its use is not limited to powering generators and driving cars.
“Over 6,000 products can be identified as made from petroleum; therefore, exportation of mineral resources in its raw form undermines industry, job creation, the availability of raw materials for secondary industries, transfer of technology and contributes to fuelling social ills.’’
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