In order to find a lasting solution to the current pricing crisis of petroleum products in the country, the Nigeria Extractive Industries Transparency Initiative (NEITI) has advised the Federal Government to initiate and implement a deliberate policy that would attract investors to invest and help in fixing Nigeria’s refineries.
NEITI gave the advice in its latest policy advisory for the oil sector, advising government to encourage private sector investment in the refineries.
“A deliberate policy initiative should be implemented with full Presidential backing to encourage Nigerians and foreign investors already awarded licences to establish private refineries in Nigeria.
“The incentives may include tax holidays, institutional support, and availing potential investors in the downstream sector of the available opportunities within the existing ‘Federal Government ease of doing business policy”.
“A team of experts could be set up to work out the details, the nature of support needed, the mode of application, the gestation period, and the projected impacts on the economy within the short, medium, and long term.
“In this direction, NEITI strongly recommends that ongoing private sector-led efforts in this area should be identified as a potential private investor initiative to address national emergencies and, as such, should attract Presidential support such as visits, encouraging pronouncements, etc.
“A presidential visit to the 200,000 barrels refinery project ongoing in Akwa Ibom State by a private company, BUA group, is an example of making such bold, positive statements”, the advisory read.