Former President of Nigeria, Chief Olusegun Obasanjo, has called for an increase in the 13 percent derivation to the oil-producing states in the country. According to Obasanjo, the present benchmark is a starting point that can be negotiated upwards. He made this statement at the inauguration of the Crude Distillation Unit (CDU) of the Azikel Refinery in Yenagoa Local Government Area of Bayelsa State.
The Azikel Refinery, a $1 billion project owned by Azikel Petroleum under the Azikel Group, is expected to produce 2.5 million litres of fuel and 2 million litres of diesel daily, among other petroleum products. Obasanjo lauded the Azikel Group president, Dr Azibapu Eruani, for initiating the refinery project and urged him to ensure its completion within the next 12 months.
Obasanjo expressed appreciation to the refinery's technical and engineering team, as well as the African Finance Corporation (AFC) and the Afrexim Bank for their support to the project. He also lauded Bayelsa State Governor, Senator Douye Diri, for supporting the project, noting that the governor had put into proper use funds accruable to Bayelsa, as evident in the numerous projects all over the state.
The former President stated that he would officially be 90 years old by next March and challenged Dr Eruani to complete the project before he exits. Obasanjo also acknowledged the governor's contribution to the project, saying that Dr Eruani had always mentioned the critical role Governor Diri had been playing.
Dr Eruani stated that the refinery would kickstart Bayelsa and the Niger Delta region's industrialisation, recalling how Obasanjo laid the foundation for the refinery eight years ago. He expressed delight over Obasanjo's presence for the installation of the CDU, which he described as the beginning of the completion of the refinery.
Eruani said the refinery was conceived to ensure that Niger Delta becomes an active player in the oil industry, saying it is the second largest full-scale refinery in the country. He hailed President Bola Tinubu for supporting indigenous refineries, saying they stand in alignment with the vision of the Federal Government to make petroleum products available and affordable to the people.
Governor Diri said the refinery justified the years of agitation by the region against the injustice in the oil industry. He noted that as producers of crude oil, the people of the region deserved to be key players in the industry. The governor and other stakeholders present at the event commended the efforts of Dr Eruani and the Azikel Group for bringing the project to fruition.
Key points
- Obasanjo advocates for an increase in the 13 percent derivation to oil-producing states in the Niger Delta region.
- The Azikel Refinery is expected to produce 2.5 million litres of fuel and 2 million litres of diesel daily.
- Obasanjo challenges Dr Eruani to complete the refinery project within the next 12 months.
