Editorial
Where Are The Private Refineries?
When former President Olusegun Obasanjo’s administration conceded to the idea of establishing private refineries, the objectives were clear: To complement the capacity of the nation’s ailing refineries in ensuring availability of petroleum products.
By so doing, the government was determined to check the problems associated with petroleum products scarcity. It also planned to provide employment for thousands of Nigerians and boost the nation’s depleted foreign reserve. In addition, the proximity of the refineries was to serve as an added advantage to consumers, especially in a deregulated economy.
Consequently, in 2002, 18 firms got government’s preliminary approval and licences to operate private refineries. They include: Akwa Ibom Refining and Petrochemicals, Badagry Petroleum Refinery, Clean Waters Refinery, Ilaje Refineries and Petrochemicals, Niger Delta Refinery and Petrochemicals, NSP Refineries and Oil Services, Ode Aye Refinery and Energy, Sapele Petroleum, Southland Associates, Southwest Refineries and Petrochemicals, Startex Petroleum Refinery, Chasewood Consortium, Tonwei Refinery, Total Support Refineries and Union Atlantic Petroleum.
With the new air of liberalisation in the downstream sector of the petroleum industry, many Nigerians from all walks of life and members of the organised private sector, as well as state governments and their foreign counterparts indicated interest and got the nod to operate private refineries. Even the Federal Government was not left behind in this new wind of change as it expressed desire to establish three new refineries, in addition to the four existing ones to enhance petroleum products supply.
Just recently, the Independent Petroleum Marketers Association of Nigeria (IPMAN) commissioned three Chinese firms to build three refineries in Nigeria with the same objective of shoring up the nation’s petroleum products supply. Justifying members’ conviction, IPMAN’s President, Alhaji Aminu Abdulkadir said the new refineries planned for Port Harcourt, Ore and Lokoja would complement the petroleum demands which have been overstretched by the ever-increasing population.
Indeed, this move by IPMAN and other well-meaning Nigerians to own private refineries shows the people’s desire to end the perennial scarcity of petroleum products constantly threatening various aspects of their lives.
Unfortunately, however, between 2002 and now, the overwhelming publicity accorded the private refineries and the need to boost the nation’s four ailing refineries have not exceeded mere reflections on the pages of newspapers. At best, some companies claimed to have cleared their sites and got ready to mobilise for real construction. The story remained the same for all the firms parading their approvals to operate private refineries.
Yet, Nigerians are still awaiting the first functional private refinery. Sadly, the much we get are reasons why it would be impossible for the refineries to take off. Either the prospective companies are said to lack the fund to prosecute the projects, or government is blamed for constituting hurdles hindering the companies from executing the project.
For instance, after receiving the initial approval to operate refineries, some firms could not access funds from their foreign sponsors which denied them the opportunity to prosecute the contract. Also, government officials were accused of extorting money and making unbearable demands from the firms. Added to this are several other bottlenecks, including power and security challenges. Arguably, some analysts say government subsidy is discouraging to investors even as Federal Government insists that the nation’s energy policy recognises issues of energy, pricing and financing along the entire oil and gas value chain. The bottom line, unfortunately, is that the refineries can not take off.
We regret, however, that the nation is spending enormous resources importing fuel. A whopping sum of $18.5 billion (N2.35 trillion) was reportedly spent on fuel importation between January 2000 and December 2006. Just as we consider this outrageous, it is indeed despicable that some Nigerians and their foreign collaborators are championing the persistent sadistic importation of refined petroleum products for their selfish reasons.
In fact, it is appalling that a recent report indicted some multinational oil firms for threatening to pull out their resources from a financial institution if it went ahead to sponsor private refineries in Nigeria.
But if we may ask: Whose interest are these multinationals protecting? Is it the greater number of Nigerians or their corrupt cronies whose acts of omission or commission over the years impoverished Nigeria and Nigerians?
However, we urge President Goodluck Jonathan to muster the political will to unravel the mystery behind the rot in the nation’s oil and gas sector.
The Federal Government must track down and prosecute those elements sabotaging our national interest, and henceforth check unprecedented leakages and strengthen the value of the naira for Nigeria to realise its potentials and move to the next level. There is no time to play the ostrich. Therefore, concrete plans should be made to process the nation’s crude oil in our local (new and old) refineries.
We believe this would be the first step to checking unending petroleum products scarcity, persistent fuel importation and encouraging establishment of private refineries.
Editorial
Resurgence Of Illegal Structures In PH
Editorial
Certificate Forgery, Loss Of Public Trust
Editorial
In Support of Ogoni 9 Pardon
-
Sports4 days ago
Bank, Lagos affirm support for sports development
-
Business4 days ago
FG Set To Launch Free National Financial Literacy Training For 100,000 Youths,
-
News4 days ago
ICPC Jails Two Assembly Officials For N4.8m Job Scam
-
Health4 days ago
Lagos Trains Health Workers On Handling SGBV Cases
-
Politics4 days ago
Makarfi Resigns As PDP BoT Secretary
-
Niger Delta3 days ago
FRSC Begins Free Vehicle Safety Checks In A’Ibom
-
News4 days ago
Libya Deports 80 Nigerian Migrants Over Illegal Stay
-
Business4 days agoInsecurity, Poor Power Supply Hamper Business Activities – Survey
