BAYELSA LUBRICANT PLANT: FG To Promote Local Content Policy
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by Our CorrespondentThe Federal Government has restated it commitment to promote the local content policy and reduce importation of products that could be produce locally.
Chief Timipre Sylva, Minister of State for Petroleum stated this on Thursday, March 17th, during the groundbreaking of the Eraskon 64,000 Litres per Day Lubricant and Chemical Blending plant and product Launch ceremony in Gbarain, Yenagoa Bayelsa State.
Sylva, who was represented by Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Mr Simbi Wabote hinted that NCDMB is supporting the indigenous firm Eraskon Nigeria Limited with equity capital for the establishment of the plant which will create 200 direct jobs.
Wabote informed the audience that Nigeria currently consumes about 250 million liters of engine oils per annum and this consumption grows at more than 5 per cent every year due to the addition of new vehicles and machineries.
He however regretted that the country’s blending capacity has remained constant at about 150 million liters showing a shortage of about 100 million liters.
The NCDMB Secretary noted that the shortfall is met by importation of finished lube oil products with the attendant loss of revenue and job opportunities.
He explained that the partnership with Eraskon is in line with the agency’s mandate to develop local capacity in the oil and gas sector.
His words: “Section 70(h) of the Nigerian Oil & Gas Industry Content Development (NOGICD) Act of 2010 mandates the Board to assist local contractors and Nigerian companies to develop their capabilities and capacities to further the attainment of the goal of developing Nigerian Content in the Nigerian oil and gas industry”.
Wabote commended the vision of Eraskon management in setting the lubricant plant which according to him will provide jobs for over 200 persons and over 800 indirectly.
In his welcome address, the Executive Vice Chairman of Eraskorp Group, Mr Maxwell Oko explained that Nigeria accounts for about 20 per cent of Africa’s total demand for lubricants.
“The idea of building a lubricants blending plant follows our determination to contribute to Nigeria’s industrial development. Lubricants are the lifeline of every engine,” Oko said.
On the partnership between Eraskon and NCDMB, he said: “Our confidence was further boosted by our partnership with the Nigerian Content Development and Monitoring Board (NCDMB) who, from their investment in us, demonstrated a clear commitment to our vision.
“Specifically, this lubricants blending project aims at providing employment, developing local manufacturing capacity and increasing local content participation in the industry.
“We believe our people can grow better with proper transfer of knowhow and the best way to aid that process is to site companies where such knowhow can be put to use closer to them.
“We want all Bayelsa people, Niger Deltans and indeed Nigerians to see this project as part of our own achievements in commerce and industry.”
Former President Goodluck Jonathan who earlier performed the products launch applauded Wabote for supporting Eraskon ’s lubricant project and the Azikiel Refinery located in the same area.
According to Jonathan; “Today is a happy day for me. That we are seeing this in Bayelsa. This project will attract other investments and beyond increase the revenue of the state”.
The former president advised other youths in the state to emulate Oko by attracting investments to the state.
The plant is expected to produce 64,000 litres per day lubricants per day including engine oils, transmission fluids, hydraulic fluids specialized four-wheel-drive products, engine coolants and specialty products such as waxes.
The facility also has the capacity to produce industrial chemicals such as drilling and production chemicals as well as Transformer and Turbine Oil, household products such as detergents and aerosols.
