The Democratic Front (TDF) has described a recent Bloomberg report on the eight-year record decrease in Nigeria’s petroleum products importation index as a welcome development.
In a statement signed by its Chairman, Danjuma Muhammad and Secretary, Wale Adedayo, TDF noted that it was a result of increased domestic refining of petroleum products in the country.
The group said: “It is a known fact that the failure of past administrations in Nigeria to ensure domestic refining of petroleum products exposed the nation to decades of wasteful expenditure on petroleum importation
“Indeed, the nation was deprived of meaningful development, as the billions of dollars made from sales of crude oil were utilized to import refined petroleum products.
“Economic stagnation, high unemployment rate, lack of productivity as well as monumental corruption in the oil sector were part of the price the nation paid for its inability to improve domestic refining.
“The decline in fuel import in Nigeria, which is now at an 8-year low, has ensured that a significant amount of foreign exchange is conserved within the economy to create jobs and also boost productivity. Similarly, it has enhanced the stability and consistent firming of the Naira.
“We acknowledge that the immediate past administration of former President Muhammadu Buhari did a good job of paving the way for it with the political will to embark on a total overhaul of all four government-owned refineries which President Tinubu keyed in and ensuring it is realized.
“Also, the conducive environment created by the two All Progressive Congress APC administrations led to Nigeria playing host to Dangote Refinery, the largest single train refinery in the world.
“Our assessment is that if the Dangote, Port-Hacourt and other refineries continue to ramp up production of refined petroleum products, the country would end up saving, annually, an estimated $10bn that could have gone into fuel imports.”
TDF added that the surge in the number of refineries currently operating in Nigeria, coupled with the government’s efforts to create a conducive business environment, will make the country a major crude oil refining hub in Africa.
