Former President Olusegun Obasanjo, on Monday, advocated an increase in the 13 percent derivation to oil producing states in the country, saying the present benchmark is a starting point that can be negotiated upwards.
Key Highlights
- Obasanjo says 13% derivation is only a beginning and oil producing states can push for more.
- He spoke at the flag-off of the crude distillation unit of the $1bn Azikel Refinery at Obunagha, Bayelsa State.
- The refinery is expected to produce 2.5 million litres of fuel and 2 million litres of diesel daily.
- Obasanjo urged Azikel Group President, Azibapu Eruani, to complete the project within 12 months.
- Governor Douye Diri faulted the Land Use Act and the 13% derivation formula.
The former president spoke at a ceremony flagging off the crude distillation unit of the Azikel Refinery at Obunagha in Yenagoa Local Government Area of Bayelsa State.
The $1billion refinery project, which is owned by the 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, Azibapu Eruani, for initiating the refinery project and urged him to ensure its completion within the next 12 months.
He 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 and advocated more support to ensure its completion.
Obasanjo Praises Diri
Obasanjo also lauded the Bayelsa State Governor, Douye Diri, for supporting the project, saying whenever Eruani spoke to him about it, he always mentioned the governor’s contribution.
He further stated that the governor has put into proper use funds accruable to Bayelsa State as evident in the numerous projects all over the state.
He said: “I have told Dr. Eruani that I will be officially 90 years by next year March. It means I will take the boarding pass soon. So, he has to make sure the project is completed before I exit.
“Governor, I want to thank you most sincerely. Every time Dr. Eruani has spoken to me about this project, he has mentioned the critical role you have been playing and that is the way to go.
“You are right that the states and oil producing communities have not got a fair deal so far. Thirteen percent is the beginning. You can continue to talk. The most important thing is that even the little you have received, you have used it well.”
Refinery Will Kickstart Niger Delta Industrialisation – Eruani
Also speaking, President, Azikel Group, Dr. Azibapu Eruani, stated that the refinery will kickstart Bayelsa State’s and Niger Delta region’s industrialisation, recalling how Obasanjo laid the foundation for the refinery eight years ago.
Eruani said the refinery is conceived to ensure that the 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.
He also expressed appreciation to Governor Diri as well as the AFC and the Afrexim Bank for their invaluable support.
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In his remarks, Governor Douye Diri said the refinery justifies 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.
Governor Diri again faulted the Land Use Act and the current 13 percent derivation to oil producing states, and maintained that the region deserves more from their God-given resources as obtainable in other parts of the world.
He expressed delight over the establishment of the refinery, saying it will make people of the state major players in the oil industry and charged Bayelsans to equip themselves to benefit from the project.
Diri also emphasised the need for Africans to process their own resources as it was the only way the continent can benefit from them.
The governor called on the oil companies operating within the Gbarain/Obunagha area to complement the efforts of the state government by rehabilitating the road leading to the refinery.
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