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

arantess:

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

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

Gracealone:
Protection of certain interests ensured that the privatisation of the refineries was reversed. That remains one major thing which, I believe, Yaradua got wrong.

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

Gracealone:
Protection of certain interests ensured that the privatisation of the refineries was reversed. That remains one major thing which, I believe, Yaradua got wrong.

Upworkwriter007:
Another thing is getting rid of ribadu to protect Ibori.

ogododo:



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

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.

ogododo:
Refinery for Warri don close shop since

SarkinYarki:
Buhari is a thief and all those who enabled his coming to power will face justice in the future from Tinubu to Atiku

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

kikero:


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)

kikero:


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.

onyechez:

We are in this country Nigeria when funds was budgeted for the upgrade and maintenance of the refineries, (where are those funds that was budgeted for such?)

UAE found oil in 1958 and Nigeria found oil in 1956, yet UAE is producing at 3.2 million barrel per day despite the population and we can see the clear difference today. You don't expect public funds to be misused, sabotaged by corrupt politicians, individuals and expect the economy to grow and increase the wealth of the nation.

Crude oil prices increased up to 80 dollars per barrel ~aprox from early 2009 to late 2014 (100 dollars) as at that time the profit was coming in other sane countries was investing in the profit by upgrading their refineries and maintaining them, investing in its economy, what did Nigeria government doing then? ( sabotaging the funds, hahaha. You think things work like that?)

most sane countries of the world plan for its citizens according to their population and its growth, hope you have grasp through Europe 40 years master man) e.g a family that has 3 children, the affordability would be different from a family of 6 children

Hope you have come across the statistics of world population in 2100, the decline of some races in Asian and European countries (how most of those countries would be mostly be populated by blacks and how the increase in racism would be very severe) while Nigeria would be the second highest in the world by then.

If dangote an individual of such caliber could build a working refinery of such capacity please what excuse do the federal government have?

Gracealone:
Protection of certain interests ensured that the privatisation of the refineries was reversed. That remains one major thing which, I believe, Yaradua got wrong.

kikero:


The funds are meaningless if you cannot cite how much it costs to actually repair and maintain and upgrade a refinery

Plus, oil subsidy means that NNPC cannot make the kind of profit to keep refinereis up to date.

Then there is sabotage, which happens because regardless of whether NNPC makes a profit or not, as a private company, it earns money from government subvention

Privatise NNPC, allow marketers to control the price of fuel they sell, and there would be hefty profits to run the oil sector.



UAE has eleven million people compared to Nigeria's 200 million

Two men earn N200000 naira monthly. One man has 2 children and one wife. The other man has ten children and several dependents. Who is going to look richer?



Well, that's the problem with resource dependent countries....which is why if you understand my post, you would see I advocate for industrialization.
A resource dependent country is not a developed country. It does not matter how much money we made from oil....we were using it to import stuff. Again, repairing the refinereis is not possible, because we forced NNPC to sell fuel below the production cost, and as a result, there were no profits in the sector...to repair the refineries.


Well, we Nigerians refuse to develop an industrial scoeity. You think we have enough money to plan for everyone? We don't. To have enough for everyone, we need oil at $140 per barrel. (Breakeven price...google it).
.


Well, we can get there.



Ha. Dangote refienry costs $9 billion. $3 billion came from his pocket...the rest $6 billion came from loans granted to him by international banks, and the African development bank.

Meanwhile, we need more than 4 new refienreis, plus upgrading of the exisitng ones. That would cost more than our current budget to achieve.

That's why we have to deregulate. Once we deregulate, while it would cost you N300 to buy one liter of fuel, there would be enough profit to fix refinereis, plus more people would come in and build refinery. Government need not spend a kobo.