Nigeria’s Refineries Flop After Gulping N264 Billion

Nigeria has spent N264 billion on maintenance of its four refineries since 1999 when the country returned to democracy, investigation has shown. But this massive spending has not been able to put the refineries back on production line, analysts say. As a result, Nigeria, Africa’s largest oil producer imports most of its petrol for domestic use.
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Nigeria has spent N264 billion on maintenance of its four refineries since 1999 when the country returned to democracy, further investigation has shown. But this massive spending has not been able to put the refineries back on production line, analysts say. As a result Nigeria, Africa’s largest oil producer imports most of its petrol for domestic use. The four refineries located in Port Harcourt (two), Warri and Kaduna have a combined capacity to refine 445,000 barrels of crude per day. They have over the years suffered what one analyst described as “total disrepair and comprehensive paralysis in the past three decades.” In spite of billions claimed to have been spent by the Nigerian National Petroleum Corporation (NNPC) over the last 16 years on Turn around Maintenance (TAM), the country’s refineries have remained comatose, industry reports showed. Whenever the refineries manage to resume production after a lengthy repair work, they hardly work for up to 90 days before they are shut down and the purported maintenance cycle continues. The NNPC has refused to oblige request three months ago for contract details including the identity of contractors, who got awards for TAMs in the last 16 years. However, reliable documents have shown that estimate spending on TAM came up to $1.746bn or N264bn using a 16 year average USD/Naira exchange rate of N150.99/$1 compiled from a Bloomberg data. The $1.746bn TAM investments were different from the sum of $308 million reportedly spent for the same purpose by the military governments of late General Sani Abacha ($216 million) and General Abdusalami Abubakar (rtd) $92 million.

Author: NewsAdmin

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