Arco boss wants refocusing of economy through petrochemical industry

Alfred Okoigun

The Group Managing Director of Arco Group Plc, Alfred Okoigun, has canvassed economic restructuring, with strategic focus on petrochemical industry.

Okoigun stated this while speaking at the yearly conference of the Institute of Directors in Abuja, recently.

In his paper titled: ‘Refocusing Nigeria’s Economy through the Petrochemical Industry’, he said that China, Saudi Arabia and Malaysia that placed emphasis on the development of viable and sustainable petrochemical industries in the distant past and even in the era of oil boom are the countries that are now enjoying the cushioning effects of their far-sighted policy decisions and implementation.

He said that even Japan and India that are non-oil and gas producing countries had a head-start in the establishment of petrochemical industrial complexes to the extent that they have been posting huge revenues from local consumption and exportation of petrochemical raw materials and finished products.

He added that despite their situations, Japan is the world’s third largest producer of petrochemicals and chemicals and she started as far back as 1955. India in its own case is the sixth largest producer of petrochemicals in the world and holds the third position in Asia.

Okoigun observed that it should not surprise anyone that China is the world’s largest producer of chemicals and petrochemicals today because she did not waste too much time dreaming about that game changer. The country moved steadily in the 1960s to associate the discovery of crude oil with the establishment of refineries and petrochemical plants. And between 1978 and 1998, China established large petrochemical bases and positioned three state-owned enterprises to steer and manage her petrochemical industries.

Three years ago, he said, China’s shipment of chemical and petrochemical products to her customers around the world amounted to U$1.6 trillion while India’s export of the commodities fetched her $300 billion during the same period.

The Arco Group Managing Director observed that comparatively, Saudi Arabia exports 100 million tonnes of petrochemical products while Nigeria’s production figure is less than one million, a quantity not enough to feed the local industries in need of petrochemical raw materials.