Illegal fuel refining inimical to national economy, environment, health of residents – energy expert

Kogiflame
Lauds Wike for anti-illegal refining posture
Kehinde Emmanuel
A retired Deputy Director of the now-defunct Department of Petroleum Resources, Engineer Sunday Adebayo Babalola, has said that illegal refining of petroleum products is inimical to Nigeria’s economy, environment, and the health of the residents.
He commended the Governor of Rivers State, Nyesom Wike for his anti-illegal refining war in his state.
Babalola who is currently Director of All Grace Energy, in an interview called on other Governors of oil-bearing or producing states to join the fight.
He said, “I must commend Governor Wike for his efforts and work. Illegal refining is cheating us on revenue. The companies are frustrated. They spend a lot of money producing operating costs, capital costs, and exploration and after they have found the oil, somebody goes to steal it and refine it illegally. The effect on the company is not good.
The effect on the company with respect to financiers is not good. Nobody will want to bring their money into a country where they are not sure what they have invested the money on is going to yield good returns. The illegal refiners are not helping the situation.
Moreover, environmental degradation is enormous. If you got to Port Harcourt today, by evening, you manage to put your hand in your nose, what it will bring out is bad soot. I commend Governor Wike for a very good job.I hope that he continues to do it and I hope that party differences will not make him be discouraged in what he is doing.
“I hope all the South-South governors will do it. The effect of illegal refining is huge. It affects the health of the people living around the South-South. From that, we see that it affects the hospitals too because when people are sick, they rush to hospitals and hospitals will be overpopulated. It also affects the revenue of the states and the federal government. It also affects companies from being able to raise money to further develop crude oil.
“It is very sad because today we think that crude oil is all that is required for huge foreign exchange earnings but that is not the case. The world is changing very fast. So if we do not produce what we can produce today, and sell it and make money that we can use for infrastructural development to move our country forward, we will stand to regret it in a few years. Because a time will come, it may not be tomorrow, it may not be next week, it may not be next years, it may not even be in 20 years’ time, but the time will come when oil will not be fashionable again. Just as it happened, coal was the in-thing one time but it is not the in thing today.
The effect can be very devastating to everybody and to all stakeholders. And that is why I commend Governor Wike and I pray that he be supported by all stakeholders so that he can do more.”
He added, “Other South-South governors should join in the fight. It is a given. If Governor Wike succeeds in his area, the people will move to other areas. So it is better for all of them to be prepared and start fighting from their own ends so that they will not have anywhere to run to and continue this illegal refining. When you talk of illegal refining, the environmental degradation, when they puncture the oil pipelines or when they leave the place after siphoning whatever they did, the environment is degraded and it is blamed on the oil companies, which is very sad.
“Honestly, it is wrong to say that many of those who are involved in illegal refining is poor. It is wrong. The people who have been doing it are not poor. They are not poor. Poor people can not afford to buy high-speed boats, poor people can not afford to buy the equipment they use to puncture and make holes in the pipelines.
“They are not poor. To me, I am not sure, they may be supported by highly placed people also. They also make a lot of money from it. I do not agree that they are poor people. People who are involved in illegal refining should stop it. They are even endangering their lives and that of other residents.
“They are also sabotaging the economy of Nigeria and their states. They also inhibit the revenue and growth of oil companies and also prevent them from more exploration. They also deter investors from investing in the industry and so prevent growth and development in their communities.”