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Nigeria to invest in petrochemical plants
The Federal Government will soon embark on massive investment in
petrochemical plants, as well as development of enterprise centers and
industrial clusters around the country.
The Minister of Commerce and Industry, Engineer Charles Ugwuh who made
the statement in Lagos while addressing traders at the Lagos
International Trade Fair Complex said his ministry was concluding talks
with the President towards injecting massive investment to set up
petrochemical processing plants and enterprise centers in the country.
"I am already talking with the President and we are looking at bringing
in money to build petrochemical plants and build the enterprise centers
that will form productive platforms. We are not talking about private
sector investment in this case because we know that only the government
has the capacity to kick start huge investment in the petrochemical
industry and industrial clusters," Ugwuh said.
The Minister said the petrochemical plant which will use inputs from
Nigeria's thriving petroleum industry will turn out products that will
be useful in boosting local production of some finished goods which are
currently not possible to manufacture in Nigeria because of the
non-availability the basic materials.
Ugwuh explained that going by the market research he conducted during a
recent trip to China such petrochemical plants may cost about $5 to $7bn
to set up in Nigeria. Ugwuh who also spoke concerning the controversial
concession of the Lagos International Trade Fair Complex to Aulic
Nigeria stated that the government is committed to reviewing the process
because of the backlash of emotional responses that have trailed the
entire process.
"Having acknowledged that the various stakeholders have already invested
huge funds towards the development of the complex, if we treat their
dissatisfaction with the transfer of the asset to Aulic carelessly it
would amount to insensitivity on our part as a government. This is why
we are taking steps to review the process and ensure that justice is
done," he said.
"I have been told that the Auto Spare Parts and Machinery Dealers
Association (ASPAMDA), The Balogun Business Association, Progressive
Traders Association, Lake View Resort, Roman Properties, Lagos Chamber
of Commerce and Industry and others have invested not less than N 110
and N 150 bn in the complex and so to transfer the management of the
asset to a company without taking the interest of these stakeholders to
account is not proper.”
This is why we have decided to bring all the stakeholders together and
come up with an acceptable arrangement for all parties involved," he
added. He said the government did not have anything against the winner
of the concession in the complex-Aulic Nigeria in its decision to review
the process that led to their winning of the asset but that government
was interested ensuring that all the groups that have stakes in the
complex are fairly treated.
Ugwuh, disclosed that the Federal Government had set measures in motion
to review the concession of the Lagos International Trade Fair complex.
He said the decision was aimed at ensuring that the Organized Private
Sector is carried along in the economic development of the country. The
Minister commended NACCIMA for the level of commitment it has shown and
the huge investment made by its members in the economy. Guru assured
NACCIMA that urgent steps would be taken to resolve the issue of the
concession of the LITFC.
"The issue of the LITFC is a serious challenge but luckily for me with
the help of my staff I have all the information about this matter. I
don't have any doubt that the concession will be reviewed. This is
obvious. At the BPE meeting I stated that this is one of the key
transactions that I would like to revisit. So, we will revisit the
matter. … I will talk to all parties concerned and we will resolve the
matter."
Ugwuh told the delegation that he had just concluded a retreat with the
heads of department and management staff of the Ministry and the heads
of parastatals under the Ministry with the theme: "To Realign the
Ministry's mandate Towards Achieving Vision 20-2020."
Ugwuh stated further that he was also planning to hold a retreat with
the organized Private Sector with the aim of refocusing industrial
strategies for economic development in the country. He said at the end
of the retreat, he would meet with the president to let him know what
the private sector wants in order to move the economy forward.
The Minister also challenged the organized private sector to think
proactively and play an active role in some development projects in the
country such as the Lagos Mega City Project and the Free Trade Zone in
Ogun State. He said some Chinese investors in collaboration with the
Ogun State Government had established Free Trade zones in Igbesa where
huge investments have been made.
He challenged NACCIMA members to take interest in these vast business
opportunities to their advantage.
