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· The Nigerian Federal Government has approved investment in the local production of bitumen and other construction materials that are being imported for the construction
· The Federal Executive Council gave the approval sequel to a memorandum presented to it by the Minister of Works and Housing, Babatunde Fashola
· It has also directed the Ministries of Petroleum Resources and Mines and Steel Development to develop strategies to enhance, stimulate and encourage local production
The Nigerian Federal Government has approved investment in the local production of bitumen and other construction materials that are being imported for the construction.
The Federal Executive Council gave approval to a memorandum presented to it by the Minister of Works and Housing, Babatunde Fashola. It has also directed the Ministries of Petroleum Resources and Mines and Steel Development to develop strategies to enhance, stimulate and encourage local production.
The move is in tandem with the thinking of President Muhammadu Buhari to boost job creation and to cut down imports by producing goods locally to preserve foreign exchange. Bitumen and other ingredients for road construction are presently imported entailing outgo of foreign exchange. When produced locally, the cost of Bitumen is expected to fall almost by 50% to N125,000 per metric tonne as against the imported cost of N285,000.
The Federal Government recently inspected the modular refinery project in Ologbo, Ikpoba Okha, which is nearing completion. The project is situated at Edo State. The project when commissioned would attract more investments in modular refineries and generate employment. Edo government is supporting the project by giving N 700 million towards the project fund. The plant can refine 6000-barrels a day. It has a fabrication yard to boost local capacity to produce materials and provide a robust support for more modular refineries.
