Marketers back refineries’ sale, project lower fuel prices
“And billions of naira have been sunked to do a turnaround maintenance. So whatever the government can do, to ensure that the property is being utilised. Like they did with Indorama, is acceptable for us. So that it can drive competition in the industry.”
When asked if the refineries should be sold off as scrap, Ukadike disagreed. “They should not be scrapped,” he said. “We have advised before that the President should declare a state of emergency in the refining sector. That would yield positive results.”
He, however, noted that years of corruption and poor technical management had rendered the refineries dysfunctional despite billions of naira spent on rehabilitation.
“There’s nothing wrong in attempting repairs, but it’s clear now that corruption and inexperience have led to the waste of billions of naira on the three refineries, and yet, they’re still not working. At this point, the best option is to sell them,” he stated.
Quoting a local proverb, he concluded, “When your dog no longer recognises your members of your family, the owners is advised to sell it for another owner, who might know how to treat it well.”
Also reacting to the development, energy economist and policy expert, Kelvin Emmanuel, raised alarm over the failure of anti-corruption agencies to act on what he described as a clear case of economic sabotage.
“It will be a travesty if the Attorney-General of the Federation and the EFCC Chairman allow the immediate past management and board of NNPC led by Mele Kyari to go scot-free without investigation and recommendation for prosecution,” he wrote in a post on X handle.
He argued that it would be irresponsible to proceed with the refinery sale without addressing issues of mismanagement and fiscal recklessness that plagued the assets under past leadership.
The PUNCH reports that the Federal Government has consistently expended resources on the refineries, which went moribund many years ago. It was gathered that $1.4bn was approved for the rehabilitation of Port Harcourt refinery in 2021; $897m was earmarked for Warri, and $586m for Kaduna refineries.
N100bn was reportedly spent on refinery rehabilitation in 2021, with N8.33bn monthly expenditure. $396.33m was spent on Turnaround Maintenance between 2013 and 2017. Despite all the financial allocations, the refineries remain unproductive at the moment.
Meanwhile, renowned petroleum economist, Professor Wumi Iledare, has cautioned against any hasty or sentiment-driven sale of Nigeria’s state-owned refineries, urging the Federal Government to adopt a strategic and transparent approach in line with the Petroleum Industry Act 2021.
Iledare stressed that although NNPC Limited, now operating as a commercial entity under the PIA, possesses the legal right to dispose of its assets, the decision to sell the country’s refineries should be guided by long-term national interest rather than immediate gains.
