Bayelsa Seeks Equity Stake in $3.5bn Brass Fertiliser, Petrochemical Project
The Bayelsa State Government has demanded an equity stake in the Brass Fertiliser and Petrochemical Company project, a $3.5 billion investment scheduled to commence on Brass Island in October.
Governor Douye Diri made the request on Tuesday when the company’s management team paid him a courtesy visit at Government House, Yenagoa.
Diri, in a statement by his Chief Press Secretary, Mr. Daniel Alabrah, said the state must be carried along in the project to correct what he described as the exclusion of oil-producing states and local governments under the Petroleum Industry Act (PIA).
He argued that the PIA had created gaps in host community development, stressing that the legislation ignored the constitutional role of state governments in land administration.
“The federal government now interacts directly with the communities, and that is an affront to the Nigerian Constitution. The Constitution says the land belongs to the state government and not the federal government,” the governor said.
Diri warned that the anomalies in the PIA had triggered inter-communal conflicts and litigations, making it difficult for host communities to access development funds. He urged the company to partner with the state government to avoid similar pitfalls.
“We want to ensure that Bayelsa State is not excluded from being a partner in progress in this whole process. If anybody thinks the state is not very important, we will then wash our hands,” he added.
The governor commended President Bola Tinubu for reviving the project, which was first conceived in 2009 but stalled for years.
He noted that its resuscitation marked a significant federal presence in Bayelsa.
Earlier, the Managing Director of Brass Fertiliser and Petrochemical Company, Chief Ben Okoye, disclosed that all necessary agreements had been secured following presidential intervention last year.
Okoye explained that the project, which includes a 10,000 metric tonne per day methanol plant, had been delayed by gas supply issues until President Tinubu directed its activation in October 2023, leading to the signing of a gas agreement in January.
He assured the state government of the company’s commitment to full implementation and commended Diri’s administration for constructing the Nembe-Brass road, which he said would save the firm up to $100,000 in logistics costs.
The Project Coordinator, Mr. Cyril Akika, outlined the benefits of the mega project, including the creation of over 15,000 jobs during construction and 5,000 permanent jobs upon completion. He also listed improved tax revenues, royalties, internally generated revenue, supply chain opportunities for Bayelsa SMEs, and equity dividends for the state.
Other anticipated benefits include the development of infrastructure such as a port, jetty, logistics base, and a 300MW gas-fired power plant, which would boost energy security and position Brass Island as a global petrochemical hub.
