Project Will Drive Region’s Industrialisation — Eruani
Refinery Vindicates Agitation Against Oil Injustice — Diri
Former President Olusegun Obasanjo has advocated an increase in the 13 per cent derivation allocated to oil-producing states, describing the current benchmark as a starting point for further negotiations.
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Obasanjo spoke on Monday at the inauguration of the Crude Distillation Unit (CDU) of the Azikel Refinery at Obunagha in Yenagoa Local Government Area of Bayelsa State.
The $1 billion refinery project, owned by Azikel Petroleum under the Azikel Group, is expected to produce petrol, diesel and other petroleum products. The project’s stated daily production figures require confirmation from the company.
Obasanjo commended the President of Azikel Group, Dr. Azibapu Eruani, for initiating the project and urged 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 Africa Finance Corporation (AFC) and the African Export-Import Bank (Afreximbank), for their support. He called for further assistance to ensure the successful completion of the project.
The former president equally commended Bayelsa State Governor, Senator Douye Diri, for supporting the refinery project, noting that Eruani had consistently acknowledged the governor’s contributions whenever he discussed the initiative with him.
Obasanjo further praised the governor for what he described as the judicious use of funds accruing to the state, citing the numerous development projects across Bayelsa.
“I have told Dr. Eruani that I will be officially 90 years by next year March. It means I will take the boarding pass soon. So, he has to make sure the project is completed before I exit,” he said.
Addressing Governor Diri, Obasanjo added:
“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.”
Obasanjo also acknowledged the contributions of the project’s technical and engineering team and the two financial institutions.
“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, Africa 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,” he said.
ERUANI: REFINERY WILL DRIVE INDUSTRIALISATION
Speaking at the event, Azikel Group President, Dr. Azibapu Eruani, said the refinery would kick-start the industrialisation of Bayelsa State and the wider Niger Delta region.
He recalled that Obasanjo laid the foundation for the project eight years ago, expressing delight at the former president’s presence for the inauguration of the CDU, which he described as a significant milestone towards completing the refinery.
Eruani said the refinery was conceived to ensure that the Niger Delta became an active participant in the oil industry, describing it as the second-largest full-scale refinery in the country.
He also commended President Bola Tinubu for supporting indigenous refineries, noting that their development aligned with the Federal Government’s vision of making petroleum products available and affordable.
The Azikel Group president further expressed appreciation to Governor Diri, the AFC and Afreximbank for their invaluable support towards the project.
DIRI: REFINERY JUSTIFIES AGITATION FOR OIL JUSTICE
In his remarks, Governor Douye Diri said the refinery represented a significant response to years of agitation by the Niger Delta over perceived injustice in the oil industry.
He maintained that communities and states that produce crude oil deserved to be active participants in the industry and benefit more substantially from their natural resources.
Diri also criticised the Land Use Act and the existing 13 per cent derivation arrangement, arguing that the Niger Delta deserved a greater share of the benefits accruing from its God-given resources.
The governor expressed delight at the establishment of the refinery, saying it would create opportunities for Bayelsans to become more active participants in the oil industry. He urged residents to equip themselves with the skills and knowledge required to benefit from the project.
He further emphasised the need for African countries to process their natural resources locally, describing value addition as essential to ensuring that the continent derived greater economic benefits from its resources.
The governor also called on oil companies operating in the Gbarain/Obunagha area to complement the state government’s efforts by rehabilitating the road leading to the refinery.
Diri 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.”
He congratulated Eruani on behalf of the people of Bayelsa State and urged other youths to emulate the Azikel Group president.
In their separate remarks, a board member of Azikel Petroleum, Dr. Daru Owei, and the Ibenanaowei of Ekpetiama Kingdom and Chairman of the Bayelsa State Council of Traditional Rulers, King Bubaraye Dakolo, commended Eruani for the project.
They expressed optimism that the refinery would positively impact the economic fortunes of Bayelsa State, the Niger Delta region and Nigeria as a whole.
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