$1.5bn P/Harcourt refinery repair: LCCI calls for concession of refineries

The Lagos Chamber of Commerce and Industry (LCCI) has described as economically and fiscally inexpedient the approval of $1.5billion by the federal government for the rehabilitation of the Port-Harcourt refinery with the plans to revamp Warri and Kaduna refineries.

The President of LCCI, Mrs. Toki Mabogunje in her address yesterday on the state of the economy, suggested that the refineries should be concessioned to private investors with the government taking a minority stake.

She said that such funds should be invested in critical infrastructural projects that would further stimulate economic development in the country.

The LCCI boss advocated for a shift from a crude oil exporting country to crude oil full value realisation.

She said: “Evidently, petroleum subsidy is unsustainable given government’s lean financial resources. Subsidy payment has for long constituted a huge burden on public finances and eliminating it would free up resources for investment in critical sectors of the economy. It is also characterised by enormous corruption and product diversion.”

Commenting on Inflation, the Lagos Chamber of Commerce and Industry (LCCI) expressed concerns over the persistent increase in domestic prices as headline inflation further accelerated to 17.33percent in February 2021, the highest level since March 2017.