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It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu - Politics (6) - Nairaland

Nairaland Forum / Nairaland / General / Politics / It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu (32396 Views)

Ibe Kachikwu Shakes Baru At The Nigerian Economic Summit, Earlier Today / I Will Resign If Nigeria Continues To Import Petrol By 2019 – Kachikwu / Fashola, Amaechi, Ngige, Onu, Lai, Kachikwu Make Ministerial List - TheCable (2) (3) (4)

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Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by mapet: 8:04am On Mar 15, 2016
modik:
Common sense is never common.!

How many by-products do we lose when we don't refine?

Everybody is thinking PMS, forgetting huge loss of many industrial by-products derivable from crude oil.

Even the creme of the society are thinking the other way??

In Femi Kuti's voice :

"I'm sorry for Nigeria" "I'm sorry for Africa "

My brother,

We have a bunch of arrogantly ignorant folks here who hardly think or learn
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by mapet: 8:05am On Mar 15, 2016
Lucasbible:
Very depressing. Totally makes me and other Nigerians feel hopeless. People voted out GEJ because they thought he couldnt revive refineries, he couldnt give us 247 electricity and that the airport / railway and trains were not 21st century compliant. We didnt even know that we had gold in our hands, we didnt know that GEJ was divine opportunity.

I apologize for voting for Buhari, I wish I can take my vote back and give to Jonathan. Forgive me my brothers, I wanted change, now I am in chains.


Stop selling a failed GEJ story, it won't work. You did not vote for Buhari, and we know your type (sponsored liar)
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by modath(f): 8:06am On Mar 15, 2016
Obiagelli:

Exactly, there is no point making comments on such threads


It's a sad situation!!
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by mapet: 8:06am On Mar 15, 2016
quickly:



We shd focus on being no 1 exporter of pms in Africa . Dat way u will be getting revenue and also creating jobs.

In addition 2 major market waiting to be exploited are Gas and Petrochemicals
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by 989900: 8:14am On Mar 15, 2016
“The way the refineries are configured right now, and until a full set of repairs and TAM are done, they are configured on the basis of 50 per cent of PMS and 50 per cent other products.

So even if they were producing on a 100 per cent basis, which they are nowhere near producing right now, PMS output would be less than 20 million litres. Our consumption is closer to 40 million. So we will still have, literarily, 50 per cent gap.”

This is a whole lot of baloney!

1. We do not consume 40 million litres a day --- smuggling things.

2. If the refineries are configured at 50% PMS output, you will be getting 35-36 million litres of PMS (445,00 BARRELS=71 MILLION LITRES), and not 20 million litres. First time I'm hearing 50% PMS output . . . are you sure Kachikwu?

3. Problems are meant to be fixed; fix it -- we need solutions, not excuses.

4. Refined petroleum products accounts for roughly 40% of our forex demands -- it kills the Naira than anything else -- so, on the long run, is importation really cheaper?

5. Until we stop importation of refined products, I don't see any bright future for this country.

6. Have the oil cabals gotten to you sir?
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by peacengine(m): 8:19am On Mar 15, 2016
yommen:
I know wailers will wail but the bitter truth is that fuel price has not increased since Buhari came in and yet we no longer pay the fraudulent subsidy that Jonathan administration was paying.

Hahaha I know you have not bought fuel recently, send my greetings to your mummy and daddy. Don't be late for school..
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by maursatt: 8:26am On Mar 15, 2016
You see the problems of this government, they just finished telling Nigerians that in 18 months time they will stop importation of PMS now they know that that is not fixable, the minister is now admitting before hand that it is not realizable come 18 months time.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by okoi001(m): 8:29am On Mar 15, 2016
Sunofgod:
I suspect imported rice is also cheaper than locally made...........and tastier!

lol, they will soon come out with this news. smiley
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by ddeola: 8:31am On Mar 15, 2016
We don hear but really, there's nothing like producing locally because it will benefit our economy better than just importing. If we can sustain it and improve power supply, it will become cheaper and our economy will be better still.

I say NO to importation of petroleum products
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by JuanDeDios: 8:39am On Mar 15, 2016
Sunofgod:
I suspect imported rice is also cheaper than locally made...........and tastier!
Actually, imported rice IS currently cheaper and some people find it tastier. What needs to be done is to fix our business climate to make local rice competitive. Reacting emotionally like some of you are doing doesn't change the facts on ground.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by Nobody: 8:40am On Mar 15, 2016
What a lie, I am disappointed in kachikwu, never trust deltans to dot the right thing.

If refinering locally is that expensive why are they arresting people who build modular refineries. How can it be expensive if the refineries are sited close to the raw materials , raw materials are situated in the country and can be extracted in known wells.

How do you ship crude several thousand kilometers away to another country and think its cheaper and economical.

It doesnt make economic sense, importing from another country, fueling their economies at the expense of ours, this guy has proven beyond reasonable doubt that the present administration is incompetent, lacks focus and does not mean well for the country.

1 Like

Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by Nobody: 8:43am On Mar 15, 2016
mapet:


My brother,

We have a bunch of arrogantly ignorant folks here who hardly think or learn

Even the so called PMS we have is limited to one octane range which is 87, we dont have higher ranges like 91, 95 which some of these modern cars the politheifcians drive, these cars need to be run on high octane fuels if not the engines fails with time.

So called octane boosters is just alcohol it does no good for these cars, owners of passat,audi, bmw etc will understand what i mean.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by Leke001: 8:44am On Mar 15, 2016
OZAOEKPE:
PMB JUST THEY VIOLATE EVERY PRINCIPLES OF ECONOMICS, HE IS TOO D A F T TO RULE A NATION AS NIGERIA.

thank you
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by Lawalight: 8:48am On Mar 15, 2016
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Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by jeak123(m): 9:06am On Mar 15, 2016
The minister in saying that it is cheaper to import than produce in Nigeria has failed. How can importation at this time of lean foreign exchange be better than producing at home. I think some of our leaders doesn't seem to understand how the economy is faring. What is he doing to ensure that the anomaly is corrected. We keep hearing that new refineries are on the way but when will they come on stream, no one seem to know. Instead of destroying illegal refineries in the creeks, the government should call those in the creeks with these refineries and work out modalities at ensuring that crude oil is made available to them while the government regulates their operations and I think, it will go a long way in reducing the rate of oil theft, create jobs for the teeming youths of these areas as well as help in conserving our scarce forex.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by Reference(m): 9:15am On Mar 15, 2016
989900:


This is a whole lot of baloney!

1. We do not consume 40 million litres a day --- smuggling things.

2. If the refineries are configured at 50% PMS output, you will be getting 35-36 million litres of PMS (445,00 BARRELS=71 MILLION LITRES), and not 20 million litres. First time I'm hearing 50% PMS output . . . are you sure Kachikwu?

3. Problems are meant to be fixed; fix it -- we need solutions, not excuses.

4. Refined petroleum products accounts for roughly 40% of our forex demands -- it kills the Naira than anything else -- so, on the long run, is importation really cheaper?

5. Until we stop importation of refined products, I don't see any bright future for this country.

6. Have the oil cabals gotten to you sir?

Na. Reality has gotten to him....sure wish it could get to you. A change of President is not a change of basic fundamentals of free market. Nigerians are capitalist by nature. Government should know this and exploit it.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by MIM77(m): 10:12am On Mar 15, 2016
Lebee4:
I think we are having more headline readers here than the readers of the main news.
after all the explanation made by the minister, I am disappointed by most of the comments on this post.

You are very correct! He said for now, importation is more expensive than refining locally. The 18 months time span he earlier gave for the stoppage of importation of refined pms means that something will be done between now and then to be able to have a cheaper refining capacity. Lets pray that they get it right instead of wailing at the sight of a misleading headline without going through the content.[color=#000099][/color] cool

1 Like

Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by AZeD1(m): 10:15am On Mar 15, 2016
After going through 5 pages of comments, i realised that less than 10 people actually read/understood what the minister said.


Sad day when English comprehension is a problem for Nigerians.

For those who don't under English,
The minister talk say as of today, it dey cheaper make we dey buy petrol from outside until we repair all dem refineries.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by MIM77(m): 10:16am On Mar 15, 2016
klax:
I'm not surprise honesty I have said it before and I'm repeating it that more shock are still coming just keep watching.

keep expecting series of shock. Nigeria will be great by the grace of God.[color=#000099][/color]
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by babysophie(f): 10:18am On Mar 15, 2016
crownwealth:
Behold Nigerians, another APC failed propaganda to "Revive and reactivate our minimally performing Refineries to optimum capacity"

The minister already accepted defeat in the face of adversity and shortage of petroleum product across the country embarassed

Lalasticlala, Nigeria needs divine intervention.

Henceforth, the military should stop the senseless bombing of local refineries in the creek and regulate same to acceptable standard.
Nice post,to add it up. D military nw run d local refineries n bomb d ones belonging to civilians.

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Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by Reference(m): 10:22am On Mar 15, 2016
Unemadu:


we want petrol but cant build refineries.

those countries build refineries by themselves. They dont wait for black man to do it for them

If you want grass-roots refineries our unschooled youths are doing it. If you want industrial refining Dangote has taken the bait. The government just has to remove its tattered jersey and don the garb of an umpire. Sell the refineries as they are. The vast majority of Nigerians have been buying gasoline for upwards of 120 naira for close to a year now. This to me is the realistic price and enough incentive to build private enterprise. It can only get better.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by free13: 10:35am On Mar 15, 2016
lipsrsealed
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by Reference(m): 10:35am On Mar 15, 2016
Genius100:


Actually Obasanjo did not sell the refinery for scrap. He sold 51% of it for around $250 million dollars with the government still retaining a 49% stake. Silly daft Nigerians screamed blue murder and called on Yar'adua to reverse it. Now, I doubt if we can find anyone to buy the entire thing for $10 million

Hahahaha....you will. The market is hot All you need is the environment of free market. Government needs to just hands off. If the government wants to drill oil, fine. But refine? Mbanu. Forty years of failure equals madness if continued. There is no big deal about refineries.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by piagetskinner(m): 10:44am On Mar 15, 2016
Y do these people keep on making contradictory statements.... Abi n'a the handiwork of journalists?
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by Reference(m): 10:48am On Mar 15, 2016
Lebee4:
I think we are having more headline readers here than the readers of the main news.
after all the explanation made by the minister, I am disappointed by most of the comments on this post.

Take time oh. After using us ignoramuses to get into power, you dey yab us now say we be dundee wey no get brain. I no like politik talk so make I no show how you take toast us with oyel boku boku talk. Which one come be explanation.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by chinchum: 10:52am On Mar 15, 2016
Reference:


I see. After sinking gazzillions into refurbishment since 1990. Kai. Nigerians. And I'm sure your recommendation will be that the government should build new ones abi.

Do you know how many bank branches are not opening today. Do you know how many MTN masts are not functioning today. You don't, because they are so many. That is the power of private enterprise. If we had privatised the NNPC in 1983 when Buhari was last in government (no political pun intended) some 33 years ago, I bet we will have had no less than a dozen refineries working in Nigeria today. I tell you once again. Cement was like this in 1983. I am an adult. Today it is produced in surplus and exported. There is NOTHING SPECIAL about refining crude. The swamp boys are doing it but I have never seen bootleg cement. The problem of scarcity and suffering is the government supported by the people.
If you read my post, i believe i share same thought. I think govt should get partners to set up new refineries, a form of public private partnership. It can be fully privatised down the line, once we have other private refineries functioning. Government has failed in every of its business endeavour. I am also of the view pipelines should be privatised, govt has failed to secure those pipelines.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by chinchum: 10:59am On Mar 15, 2016
Lebee4:
I think we are having more headline readers here than the readers of the main news.
after all the explanation made by the minister, I am disappointed by most of the comments on this post.

You understand the problem here perfectly. Many of those who comment read only the headlines, and it is always evident with their comments. it is really shameful, if you cant read the body of the message, there should be no point making comments.

1 Like

Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by mapet: 12:22pm On Mar 15, 2016
kaeforum:


Even the so called PMS we have is limited to one octane range which is 87, we dont have higher ranges like 91, 95 which some of these modern cars the politheifcians drive, these cars need to be run on high octane fuels if not the engines fails with time.

So called octane boosters is just alcohol it does no good for these cars, owners of passat,audi, bmw etc will understand what i mean.

I think you have mistakenly reference me here
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by yaki84: 12:54pm On Mar 15, 2016
oduastates:
Obasanjo sold those refineries for scrap .
Rightfully so.
Yaradua took them back .
Since then , they have not worked but the amount of money spent on them during the locust years of transformation agenda ,is enough to build 3 or 4 brand new refineries .




gej wanted to privatise it, d union leaders sensing that they will lose their looting avenue ran to apc the opposition then n they were labelling jonathan all sort of names just to score cheap points.
the problem is not the system but people running the system in nigeria.
nnpc needs total overhauling, those refineries needs to be sold as scraps then use the money n build one good refinery. another thing abt buildng refinery shud be rightful location, siting it near the source of raw materials. in asamuch as I like what dangote is doing in buildng a new refinery but I think the cost of laying those pipes n protection of those pipelines will be another bottleneck that will scuttle d success of that facility.
refineries shud be built close to its source of raw materials, rail tracks laid to link major cities to aid in evacuating the products not still laying pipelines that is prone to vandalism n sabotage.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by yaki84: 1:15pm On Mar 15, 2016
grandstar:


He spoke the truth.




yea he spoke d truth, but in an hopeless situation u must be economical with the truth.
he would hv still stood by the 18months time the situation will be improve than saying this.
u know I dont blame d man but buhari that still reason like my granny who will never want to dispose her dysfunctional transistor radio because she bought it with her first salary.
ibe kachikwu advised buhari that the 4 refineries be sold but he refused.
the way d refineries r, the whole system is awkward n nigeria will lose even if it works at optimu point. the pipelines will be paid to secured, which will be paid by the people running the refineries. n if the pipelines r bad, crude will be transported via trucks or vessels to the refineries which is another huge cost. so at d end of the day nigeria will lose instead of making profit.
the best thing now is sell it off, build one that can refine up to 700k barrels a day, n site it close to the source of raw material so much pipelaying will not be needed threr by serving not just cost but also vandals from having access to do their IT. industrial attachment.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by jogojogo: 1:20pm On Mar 15, 2016
obasiken:
Is this the kind of utterances that should be made by a minister of Nigeria? Instead of him to be thinking of a way to make production of PMS cheaper in Nigeria he has already admitted failure. This is why APC is failing cos they are PESSIMISTS.

Sorry man! Do you have comprehension problem or you just want to gush out rubbish in the name of wild critisism?

Should I just assume you did not read the write up? Unfortunately, you still have some slow minds clicking "like". I wonder how someone who could read and comprehend "like" the rubbish you posted.
Re: It’s Cheaper To Import Petrol Than Refine Locally — Kachikwu by yaki84: 1:33pm On Mar 15, 2016
Werehkpe:


Its a pity but it seems you do not read properly before commenting

Kachikwu said "AT THE MOMENT" it is not cheaper to import than to refine in Nigeria and this is because the refineries need total overhauling and Turn Around Maintenance TAM

I dont see what is wrong with this statement of fact




bobo kachikwu messed up bigtime. what is at d moment?
where u not here when apc were celebrating billions of naira saved from turn around maintenance lastyear september or so n nigerians from apc extraction said it was buhari's bbody language?
how many times will they be doing TAM of refineries?
what the statement implies is that ibe kachikwu lied to nigerians when he firat said the fed govt saved billions of naira from TAM, 3weeks later that same man ibe told nigerians the nation needs between 300million to 500million dollars to effectively do a total TAM. these guys r liars n shud be shown d wah out asap.

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