The Federal Government has expressed readiness to scale down the importation of refined petroleum products following the anticipated bridging of demand gap in local consumption with the commencement of production in Warri refinery and the Kaduna facility due to follow shortly.
The Central Bank of Nigeria governor, Mr. Godwin Emefiele dropped this hint during a briefing at the bank’s headquarters shortly after the July Monetary Policy Meeting in Abuja on Friday.
He noted that the resuscitation of the two refineries followed series of meetings between the apex bank, the management of the Nigerian National Petroleum Corporation, NNPC, and the Federal Government.
The central bank governor maintained that the combined capacities of the two firms would likely reduce the estimated 30 million litres of refined products currently being imported into the country.
He noted that the resumption of production by the refineries would reduce the pressure on both government expenditure and also help the CBN strengthen reserves and build the much needed fiscal buffers.
“We have met with NNPC and Warri Refinery has begun producing fuel. Kaduna will soon begin production and so we are going to see a drastic reduction in the import of premium motor spirit,” he stated.
Noting that CBN’s mandate was to build reserve, achieve strong exchange rate and maintain stability, Emefiele said the MPC in taking its decisions was guided by the need to stimulate growth and development in the economy, pointing out that though some of such decisions may be tough on some stakeholders, they are always taken in the best interest of the economy and the citizens.
He also restated the need for Nigerians to cut some of excesses to ensure the revival of the economy.
“In the past, we were a leading export of palm produce. Today Nigeria imports almost one million metric tonnes of palm oil. But in the past, we were producing for domestic consumption and for export. And people used the proceeds to send their children to school. We need to return to the basics to begin to create jobs again locally rather than export jobs to other countries,” he noted.
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