FG TO ANNOUNCE NEW INTEREST RATE, ASSURES INVESTORS OF ADEQUATE INCENTIVE

IBEFUN, Ogun, Nigeria – Prof. Yemi Osinbajo, Vice President of Nigeria, on Tuesday assured that the Federal Government will continue to incentivise private investors to encourage more investments across all sectors of the economy.

Osinbajo gave the assurance during the inauguration of the multi billion dollars 300 million litres tank farm capacity built by Petrolex group, an indigenous oil and gas company located in Ibefun, Ogun State.The vice president said that indigenous investors would be encouraged to strive in Nigeria which is part of the agenda of the President Muhammadu Buhari led administration.

“Government is committed to provide adequate incentives to private investment operators in Nigeria”, he said adding that government will soon announce a new interest rate specifically to encourage access to loan to the manufacturing sector with a view to boost economic activities. Osinbajo said that already government is working out the modalities having realised that the manufacturing sector is key resetting the economy.

According to him, we have been directed by President Buhari to develop a framework that will provide access to fund for manufacturer at affordable rate such that the sector will be motivated to boost capacity to trigger economic activities.

“Government will continue to create enabling environment for industrial sector to thrive. Osinbajo commended the firm for taking such bold initiative to develop an integrated energy mega city capable of transforming the oil and gas landscape of the country.

He said by its size and scope, the investment will help the country meet its petroleum products need in 2018 and reduce by 20 per cent domestic petrol need by first quarter of 2019. He said that the commissioning is a clear testament of the company’s vision and shows also that Nigeria is ready for business.

He said the facility will not only ease petroleum products supply and distribution but will create jobs and trigger economic activities across the state. Former president Chief Olusegun Obasanjo in his short remark canvassed for a robust public, private sector collaboration. Obasanjo observed that no private business can thrive without support from the public sector.

He urged government at all level to support indigenous companies in Nigeria to strive in other to develop the socio-economy environment.

Dr Maikanti Baru, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), said that the investment is a clear testimony of ingenuity of indigenous companies and demonstration of capacity to support government reform drive.

Baru promised to fully support the company to realise its set objectives as the investment will go further to achieve its target of ensuring uninterrupted products distribution. The GMD also used the occasion to assure the nation that government has no intention to increase pump price of petrol.

He said the unfounded fear was responsible for hoarding of fuel by marketers resulting in the resurgence of queues at filling stations nationwide. Henceforth, he said the Department of Petroleum Resources (DPR) to monitor product sales across the country and dispense free of charge products hoarded by marketers.

The Chairman of the company, Mr Segun Adebutu said that the facility will host a 250,000 barrels per day capacity refinery, estimated to cost 3.5 billion dollars, a lube plant which cost was put at 8.5 million dollars.

Adebutu also said a Tank Farm with 300 million capacity to turnover 600,000 million litres/month and a Gas Processing Plant to produce 50,000 Liquefied Petroleum Gas, LPG cylinders to make LPG gas more affordable as well as MarshalingYard, with 4,000 capacity trailer park in Ibefun would be located within the complex.

“The Petrolex Mega Oil & Gas City is conceptualized to enjoy the distinction of housing some of the most advanced oil and gas infrastructures in Africa.

“The first phase of the complex will comprise the 300 million liters Ibefun Tank Farm, residential quarters, army barracks, 30 loading gantries, and a 4,000 truck capacity trailer park with accommodation for drivers. This legacy investment of over 330 million dollars to date, as audited by PWC, will be the largest products storage tank farm in sub-Saharan Africa and will create at least 2,000 jobs.

As Adebutu claims; “hopefully, by the time we’re done it will be at least 70/80 per cent indigenous. It will actually help the economy of the town itself. It’s not just about direct employment. We’re setting up a city here.

The 6 billion dollars investment will make impact in the downstream up to upstream sectors of the Nigerian oil and gas sector including powers sector. The project when completed, will reduce the congestion on the Apapa by 70 per cent which will make the company a one stop energy provider not only in Nigeria but in the sub Sahara Africa.

Among prominent personalities who graced the occasion were Governors of Oyo State, Abiola Ajimobi and Benue, Samuel Ortom; Sen. Dino Melaye who represented Senate President, Dr Bukola Saraki.

Others were Ondo Deputy Governor, Ajayi Agboola; Ooni of Ife, Oba Enitan Ogunwusi; Oba of Lagos, Rilwan Akiolu; Alake of Egbaland, Oba Adedotun Gbadebo and Obi of Onitsha, Alfred Achebe. Among prominent personalities who graced the occasion were Governors of Oyo State, Abiola Ajimobi and Benue, Samuel Ortom; Sen. Dino Melaye who represented Senate President, Dr Bukola Saraki.

Others were Ondo Deputy Governor, Ajayi Agboola; Ooni of Ife, Oba Enitan Ogunwusi; Oba of Lagos, Rilwan Akiolu; Alake of Egbaland, Oba Adedotun Gbadebo and Obi of Onitsha, Alfred Achebe.