EKET DEVELOPMENT CONGRESS (EDC) POSITION ON FUEL SUBSIDY AND HOW THE COMPLETION OF AMAKPE REFINERIES WOULD HELP ALLEVIATE THE PROBLEM.

In light of the recent fuel subsidy crisis in Nigeria which almost derailed our fragile Democracy and its continuous aftershocks, Eket Development Congress USA Inc. (EDC) has decided to add its voice to those of millions of Nigerians who believe that the solution to the subsidy issue is within our power to ameliorate. The Federal Government and the Akwa Ibom State Government in particular should seize this golden opportunity to jump start talks with Amakpe Refinery, a Project with benefits that would extend beyond the shores of Nigeria.

Like many Nigerians of different works, EDC is at a loss as to why the 8th largest producer of Crude Oil in the world, Nigeria, is unable or unwilling to refine adequate fuel for at least local consumption? Why do we have to subsidize fuel imported from outside the country when we can refine enough within the borders of Nigeria? Many have argued that it is not profitable to refine locally as long as we are subsidizing imported fuel, if we as Nigerians know what the problem is, why are we not willing to fix it by creating the environment to promote the establishment of more local refineries.

EDC notes with interest Governor Akpabio’s recent statement in which he expressed his support for the removal of the subsidy, and maintained that the subsidy was applicable to fuel imports, and therefore had no potential to generate employment, or add to the country’s gross domestic product. The Governor was also quoted as saying that rather than subsidizing consumption, the government should subsidize production, pointing out that under the subsidy, those who ran refineries were not eligible for subsidy but were expected to sell at the regulated price, while those importing fuel were benefiting from the subsidy.

Given the above comments and recent pronouncements by the government of Akwa Ibom State, led by Governor Godswill Akpabio, to release the sum of one billion dollars for the industrialization of the state that has prompted EDC to assume that Governor Akpabio would fully support an immediate commencement of talks with the Amakpe Refinery promoters with the aim of finding a lasting solution to the impasse.

The Amakpe Refinery Project requires the sum of $30 million to fund the pending receivables and construction costs to complete full implementation at the Project site in Eket, Akwa Ibom State, and will start-up production and be operational within six months of shipment of the completely fabricated Refinery Equipment. Implementation of the Amakpe Refinery Project will create over 1,000 direct jobs and about 5,000 indirect jobs in the restive Niger Delta of Nigeria which would go a long way in assisting the Federal Government Militancy Rehabilitation Program. Within a few years of operation, the 6,000 BPD Amakpe Refinery will increase its refining capacity through 12,000BPD to 50,000 BPD, and would create over 3,000 direct jobs and 20,000 indirect jobs, with the ability to reduce militancy and kidnappings in the Niger Delta Region .

Furthermore, the development will support the genuine efforts of the Federal Government of Nigeria aimed at increasing local crude oil refining capacity and making Nigeria Energy independent, which will help to address the problem of Fuel subsidy.

Prayers:

EDC is requesting Your Excellency, Governor Godswill Akpabio to note the urgent importance of the Project towards your Industrialization program in Akwa Ibom State and by extension, Nigeria’s economic growth and development and;

(a) Intervene in the seeming misunderstanding between the Primary Promoters and the Akwa Ibom State Government.

(b) Facilitate the approval of a US$30 million loan request made by Sterling Bank to the Bank of Industry (“BOI”) to support the completion of the Project; and

(c) Encourage the Federal Government to grant Amakpe Refinery Project the benefit from the Department of Petroleum Resources Fiscal Incentives for development of Private Refineries.

EDC urges Akwa Ibom State government to reconsider its position in the interest of the overall good of our citizens, as it strives to create gainful employment for the citizens of Akwa Ibom State in particular and Nigeria in general. EDC also urges both parties to enter into good faith negotiations and find a way out of the quagmire. We believe that the Government of Akwa Ibom State as a "senior member" of our society should invite the Amakpe Promoters for talks in the interest of our State and for the benefit of all.

We thank you and we look forward to your commissioning of the Amakpe Refinery Project in the very near future. Margaret Itauma Nwaessien Essien National President National Secretary Eket Development Congress USA Inc

EKET DEVELOPMENT CONGRESS (USA) INC.

PO Box 540106, Houston Texas USA 77254