The Independent Petroleum Marketers Association of Nigeria (IPMAN) will commence work on its $3 billion (N1.08 trillion) refinery by the second quarter of this year.
Its National President, Chinedu Okoronkwo, said the body has conducted visibility studies to determine the cost of the refineries, the topography of the land earmarked for the project in Itobe and Abbe in Kogi and Bayelsa states, respectively.
He added that plans have been concluded to move to site and start preliminary work on the project.
Okoronkwo said IPMAN has concluded arrangements to speed up the process of building the refinery in order to help solve the problem of fuel scarcity in the country.
He said efforts to start building the refineries were marred by internal crises, adding however, that with the resolution of the issue, work will start by the middle of August this year.
According to him: “Our $3 billion refinery project would soon commence. We are discussing with our investors and technical partners.
“The project, which was situated in Kogi and Bayelsa states, ought to have commenced, but was delayed by the leadership tussle rocking the association.
“But now that it has been resolved, we will commence work soon. We are pursuing it very strongly because we believe in the success of the refinery.”
The IPMAN chief said the body is waiting for government’s approvals, adding that as soon as it gets the approval, work would start.
He said the body acquires over 1,000 hectares of land in 2014 with a view to building a refinery with a capacity of 200,000 barrels of petrol per day, adding that the refinery would go a long way in improving supply of fuel in the country.
“The country has suffered capital flight due to importation of petroleum products into the country. The cost of exporting crude oil and bringing back the refined products will be reduced, once the refinery begins operation. All we are asking from government is the license to help us start the project fully,” Okoronkwo said.
He urged the Federal government to invest more in modular refineries as a way to end fuel scarcity.
He said modular refineries could help address shortfalls in fuel supply pending when additional refineries will come on stream.
“They (modular refineries) will also boost the country’s revenue and address frequent fuel scarcity usually experienced during the yuletide seasons. Our expectation this year is for government to invest more in modular refineries to be able to have more petrol locally to address scarcity,” he said.