* Requests for time to implement phased relocation
The Nigerian National Petroleum Corporation (NNPC) has advised against a swift relocation of tank farms from their current locations along Ijegun, Kiri-kiri areas in Lagos and other parts of the country, saying it is to avoid a dislocation in the supply and distribution chain.
The corporation made the submission on Wednesday, during the hearing by the House of Representatives Ad-hoc Committee on Relocation of Tank Farms in Residential Areas such as of Ijegun and Kiri-kiri in Lagos.
A statement by the NNPC Group General Manager, Group Public Affairs Division, Dr. Kennie Obateru, quoted the Managing Director of the corporation, Mallam Mele Kyari, as saying that NNPC is not averse to the relocation of petroleum products tank farms and depots sited in residential areas, but would rather that some time be allowed to achieve the full rehabilitation of the refineries and the completion of the Dangote Refinery, to enable the country exit fuel importation before the relocation.
The GMD, who was represented by the corporation’s Chief Financial Officer, Mr. Umar Ajiya, told the committee that the tank farms and depots are a major artery for receiving and distributing imported petroleum products to all parts of the country, adding that and their abrupt relocation could trigger a crisis not only in the Downstream Sector but also in the country’s economy in general.
“We are not opposed to the yearnings of the communities or the relocation of the tank farms and depots, but we want it to be done in phases because of the huge financial commitments by the stakeholders.
“If they are relocated abruptly, even the banking sector would be affected because of the loans they granted for the establishment of the depots,” the GMD submitted.
Earlier, the Speaker of the House of Representatives, Hon. Femi Gbajiabiamila, said the Ad-hoc Committee was set up to investigate the concerns expressed by the residents in order to have a fair assessment of the situation.
Gbajiabiamila, who was represented by the House Deputy Minority Leader, Hon. Tobi Okechukwu, acknowledged that tank farms and depots are a critical component of the Downstream Petroleum Sector and assured that the House would look at the issue holistically and make a decision in the public interest.
He decried the inability of the NNPC to distribute petroleum products through the pipelines due to incessant vandalism, which has made products distribution by tankers over long distances a hazard to the society.
The committee was set up sequel to petitions by the residents of Ijegun, Kirikiri and others areas in Lagos State on the dangers posed by the operations of depots and tank farms to their respective communities.
The Committee is chaired by Hon. Sergius Ogun.