GEJ warned Nigerians look at where we are now.

My only question is why have the refineries refused to work in spite of the billions spent to revive them all these years?

MAKE OGUN KILL BUHARI AND ANYONE CAUSING MORE HUNGER IN THE LAND.

foxxydude:
NNPC the only unprofitable oil company in the world

they are very profitable. All their cabals and govt aasociates are multi-billionaires.

Let the money roll in....

#Shinzu must cash out by force

iampeterben:
GEJ warned Nigerians look at where we are now.

And Nigerians refused to listen to him...

Now; they will have to suffer for what they plunged themselves into.... and the upcoming generation will surely feel the impact... I tell u reality

NNPC should be scrapped, it has not served the best interests of Nigerians, but before that NNPC should be investigated for corruption including the ministry of petroleum affairs, u all would be shocked at the height of corruption in that agency!

Well, ten billion naira might sound like a lot of money, but in dollar terms, it's about 26,000 dollars.

And the simple reason why we don't have functioning refineries is because oil subsidy (now adays called uinderecovery, don't be fooled by the government), and price controls over the years have meant that NNPC does not have the cash to pay for fixing, and repairing the refineries effectively.

We pay the cheapest rate for fuel in Africa, and as a result, NNPC is not a profit making concern.

The moral of this news report is that NNPC and fuel marketers should be allowed to control the price of fuel. Yes, we will end up paying N300-400 for fuel, yes, it means increase of prices in the short term. BUT....long term, it means better functioning refinereis, new ones (in addition to the Dangote one) and a stronger economy.

Oil subsidy and price controls must go. NNPC must be privatised. It is the only way we can have a better petroleum sector.

Look at the GSM industry. Obasanjo allowed them to set prices like no man's business...and now we have a strong telecoms sector, 99% of which was not built by government, but by private investment, and lots of jobs that did not exist 20 years ago. And back then people wanted government to be setting prices for the GSM companies. And yes, we paid high prices initally, but with more investment (Adenuga was able to get a loan from private international banks to set up Glo because the banks could see that the sector was growing, and they would get their money back!)...prices came down.

Yorubaskullmine:
What many do not know is that there is nothing wrong with these refineries. With the humongous sums appropriated for the turn around maintenance, these refineries should be working at optimal level. However the enemies within are sabotaging the refineries as a result of the billions they rake from subsidy.

That's what i said earlier, the funds for the upgrade and maintenance should have made the refineries to function to full capacity.
The claims of funds made by nnpc during sales of crude oil where is it.
Criminal politicians.

OK

iampeterben:
GEJ warned Nigerians look at where we are now.

Thing is, GEJ in 2011 did what most governments have done in the past, he tried to partially remove subsidy, because at the time it was becoming unsustainable.

At the time he raised prices to N140 from N65, the cost of importing one liter of fuel was N99. Hence the increase to save money. But Nigerians don't like petrol price increases, so the price was rediuced to N97.

By 2015, the cost of imprting fuel was N132 per liter, and the fuel price was now N87. At some point, something had to give. Government was owing millions in subsidy claims, plus we were losing N50 per liter of fuel sold in Nigeria. That's why Buhari did what GEJ did in 2011 in 2015, he raised prices to N145, and also saved money (Oil prices had crashed as well, meaning low income to pay for subsides)

But the problem is, oil import costs continued to rise. Now it is bewtween N180-200. Then the covid 19 crash reduced the cost of imprt, hence the price fell to N123, now, prices are comming up, so it is back up to N145....a price the government can afford to subsidse fuel

At the end of the day, PDP and APC are the same.

The problem is, Government needs to stop controlling oil prices. What GEJ should have done, and what Buhari should have done as well is STOP CONTROLLING THE PRICE OF OIL. They should have allowed marketers to set the price of oil, and ended the subsidy thing.

And by now, after an initial price increase, prices would have started falling, we would have had more refinereis, and we would have been exporting petrol self.

Both of them missed the big chance to change things.

obi58:
My only question is why have the refineries refused to work in spite of the billions spent to revive them all these years?

They don't want to answer any questions relating to that, what they know is to sabotage funds coming from it.
The government is responsible for disbursement of such funds to revive the refineries and make sure such funds are used judiciously. but they have sabotage the funds as usual. Nobody is asking such questions. Dangote used 2b dollars to build a refinery but federal government have used more than that to revive the refineries.
The federal government is looking for excuses to sale the refineries.

Openbusiness4:
they are very profitable. All their cabals and govt aasociates are multi-billionaires.

NNPC is very unprofitable.

Here is the reason why...the thing is, if you were selling shoes for N12000 a pair, after buying them from the manufacturer at N10000 a pair and government comes in and forces you to sell at N5000 a pair, and pays you a subsidy claim of N4000 per pair sold, which means you lose at least N1000 per pair of shoe sold...that's a problem.

The thing is, NNPC is not making the type of profit it should be making to be a prosperous company. It is forced to sell fuel below the production price from its working refienreies, it has to import fuel at it's expense because thanks to years of selling fuel at below the production price, it does not have the cash to repair, upgrade, and fix refienreis, and even build new ones.

Of course, government covers the cracks by allocating enough cash to pay for staff salaries.

That's why oil subsidy has to go. And price controls on the fuel sector have to go as well. So that NNPC has the profit to pay for new refienreis, and upgrade exisiting ones.

(And don't mention Saudi Aramaco. Saudi earns far more from oil than we do, and has a much lower population to spend it on, so they have surplus revenue to spend on their state oil company)

GMBuhari:
Won't be surprised if that money went to different accounts

This is Nigeria where they used hundreds of millions to feed kids who are locked down at home

And the (dis) honourable minister for disaster used over 600 billion naira to do hand to hand transfer of money to the most vulnerable households in the nation. Even Abacha loot was used to support the poorest households in a process that avoided bank accounts, and as such can't be audited. Sai Mai gaskiya!

obi58:
My only question is why have the refineries refused to work in spite of the billions spent to revive them all these years?

Because
1.Internal corruption
2.Subsidy and government controlling the price of fuel...which means NNPC is not earning enough money from selling fuel over the years, which means that there isn't enough money to fix the refineries...which in trun drives the internal corruption.

Who runs his business this way?
Negative profit year in year out and still maintain all his staffs.
Nigeria is worst than any human thoughts can conceive.

ogododo:



https://www.thisdaylive.com/index.php/2020/07/17/nnpc-spends-n10bn-on-comatose-refineries-in-april/amp

in doubt ,the money will be diverted to another accounts and use refinery to cover up, Nigeria and atrocities are like monkey and bananas .

What is the use of the NNPC? When privatisation is the way forward..

ARE THE REFINERIES WORKING?#10B GONE DOWN THE DRAIN!SAD!!

ofiko123:
What is the use of the NNPC? When privatisation is the way forward..

Privatising NNPC means higher prices for fuel immediately.Because it means NNPC is no longer benefitting from government subventions, which means it has to work for its bread, which means higher prices for fuel, gas, kerosene, etc.

That's why most Nigerians are opposed to privatising NNPC.(even though long term, prices would come down as investment increases)

ogododo:
Refinery for Warri don close shop since

Lol, I pass that refinery yesterday the place be like graveyard.

kikero:
Well, ten billion naira might sound like a lot of money, but in dollar terms, it's about 26,000 dollars.

And the simple reason why we don't have functioning refineries is because oil subsidy (now adays called uinderecovery, don't be fooled by the government), and price controls over the years have meant that NNPC does not have the cash to pay for fixing, and repairing the refineries effectively.

We pay the cheapest rate for fuel in Africa, and as a result, NNPC is not a profit making concern.

The moral of this news report is that NNPC and fuel marketers should be allowed to control the price of fuel. Yes, we will end up paying N300-400 for fuel, yes, it means increase of prices in the short term. BUT....long term, it means better functioning refinereis, new ones (in addition to the Dangote one) and a stronger economy.

Oil subsidy and price controls must go. NNPC must be privatised. It is the only way we can have a better petroleum sector.

Look at the GSM industry. Obasanjo allowed them to set prices like no man's business...and now we have a strong telecoms sector, 99% of which was not built by government, but by private investment, and lots of jobs that did not exist 20 years ago. And back then people wanted government to be setting prices for the GSM companies. And yes, we paid high prices initally, but with more investment (Adenuga was able to get a loan from private international banks to set up Glo because the banks could see that the sector was growing, and they would get their money back!)...prices came down.

Ghana sold some of the refinery years ago to a private company but it didn't bring any changes to their petroleum sector instead it brought high prices of petroleum products in turn increased transportation, utility bills and others.
What happened?
Know that these private companies which are mostly foreign because most times indigenous private owned is sometimes impossible due to the no or poor expertise, highly skilled engineers in certain specialized areas.
These foreign firms operate according to the nature of the economy that's (inflation, government policies, taxes etc) at that specific time and these companies got target, employees to pay, maintenance and operational costs in other to function to full capacity.
WHAT WOULD HAPPEN?
If the economy isn't doing well like high inflation, taxes, bad economic policies the citizens should brace up to pay high for petroleum products such as petrol, diesel etc.
This is what is happening in Ghana today as we speak, same thing that almost happened in Saudi arabia but they budgeted funds for just one main refinery to work on full capacity then the rest private.
Nigeria should get one national working refinery in case if such company are no longer interested in operating in Nigeria especially in a pandemic like COVID-19 where foreign workers would go back to their home countries depending on the situation. We privatized nepa, why are we not having stable supply of electricity? The same circle would continue if we do not do the needful

kikero:


Privatising NNPC means higher prices for fuel immediately.Because it means NNPC is no longer benefitting from government subventions, which means it has to work for its bread, which means higher prices for fuel, gas, kerosene, etc.

That's why most Nigerians are opposed to privatising NNPC.(even though long term, prices would come down as investment increases)

They should fûcking unbundle the nnpc and privatize some sectors, like the refineries and NGCs.
Sectors like dpr n ppmc could remain under the govt, they should sign the fûcking pib bill into law. This govt is not serious about anything. Their problem is to build pipeline to the north.

onyechez:

Ghana sold some of the refinery years ago to a private company but it didn't bring any changes to their petroleum sector instead it brought high prices of petroleum products in turn increased transportation, utility bills and others.
What happened?
Know that these private companies which are mostly foreign because most times indigenous private owned is sometimes impossible due to the no or poor expertise, highly skilled engineers in certain specialized areas.
These foreign firms operate according to the nature of the economy that's (inflation, government policies, taxes etc) at that specific time and these companies got target, employees to pay, maintenance and operational costs in other to function to full capacity.
WHAT WOULD HAPPEN?
If the economy isn't doing well like high inflation, taxes, bad economic policies the citizens should brace up to pay high for petroleum products such as petrol, diesel etc.
This is what is happening in Ghana today as we speak, same thing that almost happened in Saudi arabia but they budgeted funds for just one main refinery to work on full capacity then the rest private.
Nigeria should get one national working refinery in case if such company are no longer interested in operating in Nigeria especially in a pandemic like COVID-19 where foreign workers would go back to their home countries depending on the situation. We privatized nepa, why are we not having stable supply of electricity? The same circle would continue if we do not do the needful

Well

1.Companies have to charge whatever price they think is fit for them to make a profit to pay their workers adequately.

Ghana sold a refienry, A company bought it. Yet the workers STILL have to be paid. Where is the money going to come from?

Also, the refienry needs to be upgraded, and also needs maintenance. Where is the money going to come from?? Government is no longer funding the refienry.They sold it after all.

Welcome to capitalism. I don't like it, but you cannot expect a company to be selling its product below the production cost.

If you owned a refienry, and it cost you N100 (For illustrative purposes only by the way)..to produce one liter of fuel, and government comes and tells you to sell it at N30 per liter to marketers, would you make a profit.


2.Saudi Arabia has a population of 10 million people, and produces 11 million barrels of crude oil daily. Nigeria has 200million people and produces 2.3 million barrels of crude oil daily.

As a result, Saudi can afford to pay for subsides, and to fix their refinereies.(10 of them by the way) because they earn far more than we Nigerians do.

If Saudi's populaiton jumped to 300million in one day, they would be as broke as Nigeria in months.

MODIFIED

One workign refinery is not going to meet our needs. We need something like ten or more.

Sammy07:
Both NNPC And NDDC should be scrapped, they're both useless to their purpose of establishment

Atiku proposed this but you guyz said he us corrupt

Nairalandmonika:

They should fûcking unbundle the nnpc and privatize some sectors, like the refineries and NGCs.
Sectors like dpr n ppmc could remain under the govt, they should sign the fûcking pib bill into law. This govt is not serious about anything. Their problem is to build pipeline to the north.

1.It still means higher prices because the refienres are no longer going to get money from government, so they have to make their own. Add the fact that there have been decades of neglect...meaning higher prices.

That's why privatisiaiton, though making sense economically , is not politcally popular (Even Atiku, when he campaigned on the privatisiation thing last election cycle, spoilt it by saying he would reduce prices to N90....where would the refieneries then get the profit they need to keep working).

2.Not to defend the government, but a pipeline to the North supplying fuel and gas to the North has the added benefit of reducing transportation costs.

In a situation where the oil sector is no longer under subsidy and price controls, transport costs means that the price of petrol in the North could be hypothetically higher than that in the South. Hence the need for pipelines (and a functioning rail system) to cut transport costs (That's why NNPC has a refienry in Kaduna.)..and the cost of fuel.(Even under subsidy, it saves the government some money)

The gas pipeline that was commisioned recently is part of a plan to transport gas across the North, reducing transport costs, and hopefully fuelling industrial and job growth up North (which could in theory reduce a lot of things, like Boko Haram, and banditry, and even fulani crisis...but that's wild imagining now!)..and also part of a Trans Saharan pipeline that would enable us have access to the European gas market. (IF the government is serious)

Jabioro:
There is no other names to call this nation."""Prodigal Nation"""

It's not a nation, country yes, not nation

Buhari and Corruption sef

I remember when a certain presidential aspirant said he'll sell or privatise the refineries and you all claimed he wants to sell it to his cronies.
We deserve the kinda leaders we have

J