By Oyintokoni Joel, Yenagoa
Former President of Nigeria, Chief Olusegun Obasanjo, on Monday advocated an upward review of the 13 per cent derivation to oil producing states, saying the current benchmark is only a starting point that can be negotiated upwards.
Chief Obasanjo stated this at the flag-off ceremony for the Crude Distillation Unit (CDU) of Azikel Refinery at Obunagha in Yenagoa Local Government Area of Bayelsa State.
The one-billion-dollar refinery project, owned by Azikel Petroleum, a subsidiary of Azikel Group, is expected to produce 2.5 million litres of petrol and 2 million litres of diesel daily, among other petroleum products, on completion.
Obasanjo lauded the President of Azikel Group, Dr. Azibapu Eruani, for initiating the refinery project and charged him to ensure its completion within the next 12 months.
He also expressed appreciation to the refinery’s technical and engineering team, as well as the African Finance Corporation (AFC) and Afreximbank for their support, and advocated more support to ensure timely completion.
The former President commended Bayelsa State Governor, Senator Douye Diri, for supporting the project, noting that Eruani had always acknowledged the governor’s critical role.
According to him, the governor has put funds accruable to Bayelsa into proper use, as evident in the numerous projects across the state.
He said: “I have told Dr. Eruani that I will be officially 90 years by next 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 per cent 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.
“I want to express appreciation to those who have given the technical and engineering support for this project. When I came here eight years ago, there was nothing like this but now it has become a different thing.
“I want also to thank those two financial institutions, African Finance Corporation and Afreximbank. My challenge to you Dr. Eruani is to ensure that the refinery is completed within the next 12 months. With this done, you can even double the capacity.”
In his remarks, President of Azikel Group, Dr. Azibapu Eruani, said the refinery will kickstart the industrialisation of Bayelsa and the Niger Delta region. He recalled that Obasanjo laid the foundation for the refinery eight years ago and expressed delight over his presence for the installation of the CDU, which he described as the beginning of the completion phase.
Eruani said the refinery was conceived to ensure that the Niger Delta becomes an active player in the oil industry, noting that it is the second largest full-scale refinery in the country.
He commended President Bola Tinubu for supporting indigenous refineries, saying it aligns with the Federal Government’s vision to make petroleum products available and affordable. He also thanked Governor Diri, AFC and Afreximbank for their support.
Also speaking, Governor Douye Diri said the refinery justified years of agitation by the region against injustice in the oil industry, stressing that as producers of crude oil, the people of the region deserve to be key players.
Governor Diri faulted the Land Use Act and the current 13 per cent derivation formula, maintaining that the region deserves more from its God-given resources as obtainable in other parts of the world.
He said: “As people of the Ijaw ethnic nationality, we have protested and fought because we feel that God gave us something in our land but we are not benefiting from it. Others are benefiting and saw us as second class citizens. It has been a long journey to be part of what God has given to us under our soil.
“The Land Use Act is unfair. Surface resources belong to states but what lies underneath belongs to the Federal Government. That law is obnoxious and not good for any just society.
“We do not want to take all to ourselves. We just want to be co-players in determining how it is done. Thirteen per cent is not enough for the states.”
Diri congratulated Eruani on behalf of the people of the state and charged other youths to emulate him. He emphasised the need for Africans to process their own resources, noting that it remains the only way the continent can benefit from them.
He further called on oil companies operating within the Gbarain/Obunagha axis to complement government efforts by rehabilitating the road leading to the refinery.
In separate remarks, a board member of Azikel Petroleum, Dr. Daru Owei, and the Ibenanaowei of Ekpetiama Kingdom and Chairman, Bayelsa State Council of Traditional Rulers, King Bubaraye Dakolo, lauded Eruani for the project, saying it will positively impact the economic fortunes of the state, the region and the country.
