The Major Oil Marketers Association of Nigeria (MOMAN) says it is excited by the commencement of the African Continental Free Trade Area Agreement (AfCFTA) because it can transform Nigeria into a petroleum products refining hub.
Mr Tunji Oyebanji, Chairman, MOMAN, told journalists on Monday in Lagos that AfCFTA has the potential of boosting Nigeria’s economy with implementation of strategic policies by the government.
Nigeria is one of the countries that have ratified the AfCFTA, the implementation of which began on Jan. 1, 2021.
The AfCFTA aims to redefine trade relations within African states and proposes creating a central market for goods and services, with free movement of people and investments across 54 countries.
Oyebanji said: “I believe in 2021 we will begin to see the impact of AfCFTA in our own area which is oil and gas.
“With the investments in new refineries that are expected to come on stream this year, Nigeria will gradually become an exporter of petroleum products.
“The AfCFTA will provide a favourable environment for export oriented refineries to thrive and give us opportunity to be selling petroleum products to other African countries.”
He said MOMAN members are ready to key into the agreement and would be encouraged by consistency of policies on the part of the government.
Oyebanji said for instance, while the government was pursuing a deregulation policy for the petroleum downstream sector, some of its agencies were still making unnecessary interventions capable of derailing such efforts.
“It is contradictory for agencies like Petroleum Products Pricing and Regulatory Agency (PPPRA) to be making incursions in a deregulated market.
“This discourages investment because investors want their investment and businesses to be protected,” he said.
Oyebanji also called for improvement in the ease of doing business in the country, adding that this would enable Nigerian businesses take advantage of the opportunities provided by the AfCFTA.