The Managing Director and Chief Executive Officer (CEO) of Aradel Holdings, Mr Adegbite Falada disclosed that the advantages of local modular refineries serve as substitution to import products and reduces pressure on forex exchange.
He made the disclosure during a panel discussion at the ongoing 7th Nigeria International Energy Summit (NIES) in Abuja on Wednesday.
According to him the government and all stakeholders should encourage local refining of crude into petroleum products as very essential towards availability of the products in the country.
He said, “Local refineries will encourage import substitution which will reduce pressure on the nation’s foreign exchange, adding that, it will also create jobs in the country.
“The primary benefit of local refining is not price because you are still going to buy the crude at international oil prices.
“The biggest value that local refining does is that it provides employment for Nigerians, it helps us with import substitution and so because you are not committing your scarce forex to import fuel, you are able to conserve your forex and it eases the pressure on the naira.
“Those benefits outweigh the issue of pricing. We will price in cost reflective in some instances, it means we are selling for less than it would have sold for if it were imported.”
The MD stressed that the most important and impact change to be seen in local refining is import substitution in terms of forex and also providing jobs for people who are in the entire value chain of refining.
“We are driven by a steadfast commitment to deliver sustainable energy solutions that power economic growth while preserving the environment. With a legacy of expertise and a future-oriented mindset, we embrace the challenges to shape a brighter energy landscape for tomorrow.
“Our consistent growth is attributed to our innovation and adaptability which continue to propel us as industry pioneers who consistently deliver value to our stakeholders.
“Our relentless pursuit of operational excellence, profitability, cutting-edge technologies, strategic partnerships, and unwavering safety standards ensure that we consistently surpass expectations.
“Together, let us fuel growth, foster collaboration and lead the way towards a sustainable energy future,” he said.
The CEO of Aradel said, “I think what we have done in the last 31 years is to prove the concept that we can operate responsibly, safely and by global standard and we can be a good defender of value for our shareholders.
“So what needs to be done for us is putting ourselves out there and signposting to all Nigerians that we are ready for the next level and that next level is one that we travel not with the existing shareholders but with other people globally.”
