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Blue Seal Energy Group (BESG) has announced the ground breaking of the first chemical production plant in Ibeju Lekki, Lagos, at the weekend
Managing Director/ Chief Executive Officer (CEO) of the firm, Mr. Doyle Edeni, disclosed the latest intervention by the firm to bridge the massive importation of chemicals into the country.
Edeni, added that the first phase of the 35,000 metric tons per annum chemical plant would cost about $12.5 million with a potential to expand.
Prior to the decision of the firm to set up a production plant in Nigeria, he said the company imports from its parent firm in Houston, USA. Quoting World Bank Figures, he said Nigeria imported chemicals to the tune of $1.4 billion in 2019 alone, out of which his company was responsible for $5 million dollars yearly.
He lamented that the uncertainty in the country’s business environment has forced many of its competitors to shut down, adding that the inability to project the industry needs for chemicals, especially for refineries and other petrol chemical plants has further compounded their woes.
‘‘You know chemical is a product that has a shelve life plan and because of that, you must plan very well. Sometimes, while your product is on its way to the country, some companies or refineries would have shut down operation, due to power issues and other challenges. By the time they arrive and stay for some period longer than necessary in the warehouse, they would have expired and lost quality.’’ The BESG boss said the need to establish a factory became compelling because of all this above listed constraints, coupled with logistics issues which prolong the arrival of chemicals into Nigeria up to three or more months.
According to him, the associated cost required to dispose these chemicals had become a huge burden because such could not be dumped into the environment without detoxifying same.
