Obasanjo Backs Higher Derivation As $1bn Azikel Refinery Advances Niger Delta Industrialisation

Former President of Nigeria, Chief Olusegun Obasanjo, on Monday, advocated an increase in the 13 per cent derivation to oil-producing states in the country.

Chief Obasanjo said the present benchmark was a starting point that can be negotiated upwards.

The former president spoke at a ceremony marking the inauguration of the Crude Distillation Unit (CDU) of the Azikel Refinery in Obunagha, Yenagoa Local Government Area of Bayelsa State.

The one-billion-dollar refinery project, owned by Azikel Petroleum under the Azikel Group, is expected to produce 2.5 million litres of fuel and 2 million litres of diesel daily, among other petroleum products.

Obasanjo lauded the Azikel Group president, Dr Azibapu Eruani, for initiating the refinery project and urged him to ensure its completion within the next 12 months.

He expressed appreciation to the refinery’s technical and engineering team, as well as the African Finance Corporation (AFC) and the Afrexim Bank, for their support of the project and advocated for more support to ensure its completion.

Obasanjo also lauded the Bayelsa State Governor, Senator Douye Diri, for supporting the project, saying whenever Eruani spoke to him about it, he always mentioned the governor’s contribution.

He further stated that the governor has put the funds accruing to Bayelsa to proper use, as evidenced by the numerous projects across the state.

He said: “I have told Dr Eruani that I will be officially 90 years old 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 also want to thank those two financial institutions, African Finance Corporation and the Afrexim Bank. 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.”

Also speaking, President, Azikel Group, Dr Azibapu Eruani, stated that the refinery will kickstart Bayelsa’s and the Niger Delta region’s industrialisation, recalling how 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 of the refinery.

Eruani said the refinery was conceived to ensure that the Niger Delta becomes an active player in the oil industry, saying it is the second-largest full-scale refinery in the country.

He hailed President Bola Tinubu for supporting indigenous refineries, saying they align with the Federal Government’s vision to make petroleum products available and affordable to the people.

He also expressed appreciation to Governor Diri, the AFC, and the Afrexim Bank for their invaluable support.

In his remarks, Governor Douye Diri said the refinery justified the region’s years of agitation against injustice in the oil industry.

He noted that as producers of crude oil, the people of the region deserved to be key players in the industry.

Governor Diri again faulted the Land Use Act and the current 13 per cent derivation to oil-producing states, and maintained that the region deserved more from their God-given resources as obtainable in other parts of the world.

He expressed delight at the establishment of the refinery, saying it will make the people of the state major players in the oil industry, and charged Bayelsans to equip themselves to benefit from the project.

Diri also emphasised the need for Africans to process their own resources as it was the only way the continent could benefit from them.

The Bayelsa helmsman 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.

His words: “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 see 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 the state while charging 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, Bayelsa State Council of Traditional Rulers, King Bubaraye Dakolo, both lauded Eruani for the project, saying it will impact positively on the economic fortunes of the state, the region and the country.