Former chairman of the House of Representatives Committee on Petroleum (Downstream), Dakuku Peterside has urged President Bola Tinubu’s government to implement policies that incentivise investment in local refinery capacity.
During an interview on Wednesday in Lagos, Dakuku Peterside emphasised the need to attract private capital to crude oil refining due to its significant impact on the economy and job creation.
He said, “We must be mindful of the signals we send; otherwise, no one will invest in the sector. Refining is a low-margin business exposed to global market fluctuations.”
The former director-general of the Nigerian Maritime Administration and Safety Agency (NIMASA) stressed that investors require support through low-interest capital and other incentives without compromising national interests.
Mr Peterside further advocated for government support and policy-level backing for modular refineries.
He highlighted the importance of providing security and a conducive policy environment for investors, noting that no genuine investor would choose an unsafe environment over a secure one.
Stating, “We cannot use different measures for different businesses and expect investors to take us seriously. Investors are sensitive to inconsistencies.
“The government should minimise political risk and enhance the ease of doing business”, he called for policy and regulatory consistency,
Regarding the Dangote refinery crisis, Mr Peterside pointed out issues of regulatory clarity and policy inconsistency, asking, “What are the regulations? What is the government’s position on in-country refinery investment?”
Investors were advised by him to assess their risk appetite before investing and cautioned that inconsistent government policies and regulatory enforcement could deter investment.
Mr Peterside said the treatment of local investors would signal foreign investors, adding that investments would go where they are welcomed.
He also said, “Let us be firm and clear on fundamentals, collaboration, regulatory regimes, policy targets and operational excellence.”
