Speaking with Bloomberg TV Africa reporters in London, Alison-Madueke supported the idea of major infrastructural entities, such as refineries, being owned by the private sector rather than the government. Government, she explained, "does not want to be involved" in running such entities. She then went on to admitting, "We haven't done a very good job at it over all these years."
Last year's Presidential audit of the facilities showed it would be best to sell them, as government funding was 'inadequate,' while performance 'sub-optimal'.
According to the November 2012 report submitted to President Goodluck Jonathan, the refineries (which have a combined 445,000 barrel-a-day capacity) should be privatized within 18 months.
Nigeria, a member of the Organization of Petroleum Exporting Countries (OPEC), produced 1.99 million barrels a day of crude in October, 2013.
While being Africa's top crude exporter, Nigeria relies on fuel imports to meet more than 70 percent of its needs. Its state-owned plants do not operate at a full capacity because of poor maintenance and aging equipment. The data by Nigeria National Petroleum Corp (NNPC) shows Nigeria exchanges 60,000 barrels a day of crude for products with Trafigura Beheer BV, and a similar amount with Societe Ivoirienne de Raffinage's refinery in Ivory Coast.
"We are right now undergoing a major turnaround maintenance program of the refineries," Alison-Madueke said.
Improvements to the two-unit 210,000 barrel-a-day Port Harcourt refinery will be completed by the end of the year. This development is to be followed by enhancements at the Warri (Delta state) and Kaduna (Kaduna state) sites in 2014, according to the NNPC. Warri has a daily processing capacity of 125,000, Kaduna 110,000 barrels.
In 2007, under President Obasanjo's administration, the refineries were sold to companies owned by billionaires Aliko Dangote and Femi Otedola. The operation was, however, reversed by the President Musa Yar'Adua government that took over from Obasanjo.
Is there ever a time when nigeria have enough funds. But the country has more than enough funds to satisfy their greedy lifestyles.
ReplyDeleteSelling to private might not work. performance will continue to be 'sub-optimal'. The minister should visit those country that are rich in oil producttion, visit their refinery and learn how things are done, starting with the arabian countries.
ReplyDeleteThis is just an opportunity to mess up the country's fund and another avenue to steal and cover up.
ReplyDelete