Dr Billy Gillis-Harry, PETROAN’s National President, gave the commendation on Wednesday while reacting to the development.
Gillis-Harry urged the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to take swift action against refineries, cargo vessels and companies that would default on the directive.
The News Agency of Nigeria (NAN) recalls that the NUPRC had warned oil exploration and production companies against diversion of crude oil designated for domestic refineries, saying it is a contravention of the law.
The commission said it would no longer grant henceforth disallow export permits for exportation, designated crude oil cargoes meant for domestic refining.
The PETROAN President, however, said that the move was expected to boost local refining capacity, reduce the importation of refined petroleum products and ease pressure on foreign exchange supply.
According to PETROAN, the exportation of crude oil meant for domestic refining has led to the abandonment of local refineries.
“It has been a major racketeering scheme, with producers and traders prioritising quick foreign exchange proceeds over local refining.
“Approximately 500,000 barrels of crude oil per day are allocated for domestic refining, but these volumes often find their way to the international market.
“The ban is expected to have a positive impact on the economy, as refining crude oil locally will enrich the petrochemical industries and agricultural sector.
“It will reduce inequalities in income and enable Nigeria to transition from a raw material supplier to a value-added product supplier.
“I believe that this policy will guarantee sufficient refined petroleum products in the country, leading to price reductions and better days ahead for Nigerian consumers,” he said. (NAN)
