The Federal Government has halted its plan to privatise Nigeria’s refineries following demands by the Nigerian National Petroleum Corporation to allow the corporation revamp the dormant facilities.

Also, the Federal Government said on Monday that the problem with the Ajaokuta Steel Company was very complex, although efforts were ongoing to resolve the issues.

Director-General, Bureau of Public Enterprises, Alex Okoh, who spoke to journalists in Abuja while presenting updates on the bureau’s 2021 work plan, said all the refineries under the NNPC management were in various stages of non-production.

He said, “We have four refineries with refining capacity of 445,000 barrels per day and they are all at various stages of non-production. I don’t have the figures correctly, but I think that Warri would be around five per cent, Port Harcourt around 19 (or) 20 per cent and Kaduna is zero.

“Our plan initially was to suggest to the Federal Government that we should privatise these refineries, no need to put in more money, especially given the fact that you also have private investors going into the space.

“Dangote (Refinery) is looking at about 650,000 barrels per day, so the combined refining capacity for all of our four refineries is not even up to that. This means you are going into a space where competition will almost kill you.”

Okoh added, “So we thought we should privatise, but NNPC believes that the plants can be rehabilitated and they have got the government approval to go ahead and rehabilitate the refineries.



“So we have dropped the privatisation from our 2021 plan. But I’m sure we will follow with keen interest how the rehabilitation programme of the NNPC will go from here.”

The Federal Government had earlier in the year stated that it would sell or give out in concession some of its assets in order to raise funds to finance the 2021 budget.

In January 2021, the Minister of Finance, Budget and National, Zainab Ahmed, told lawmakers that the Federal Government would sell selected properties to fund this year’s budget.

The BPE had earlier in the year itemised Nigeria’s refineries as assets to be privatised and classified them as core investor sale, but the amount to be earned from the facilities was not stated as at then.

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On Ajaokuta steel, the BPE boss described the problem with the plant as being very complex.

Okoh said, “For Ajaokuta, it’s a very complex issue. Currently there are negotiations with GINL, who are the original concessionaires of Ajaokuta and it’s a very complex problem to untangle.

“But I can, without divulging too many details, state that we are close to being able to resolve the issue, especially the litigation around Ajaokuta and once that is done we can then go ahead and take a decision on what to do with Ajaokuta.”

Okoh said the Federal Government planned to earn a total of N493.4bn from the sale or concession of about 36 of its assets across the country.

He said the reprivatisation deal of Yola Electricity Distribution Company was being concluded on Tuesday, as he noted that the Transmission Company of Nigeria was up for concession.

He explained that assets that were up for sale or concession had been classified under energy assets, industries and communication department, as well as development institutions and natural resources.

Others include infrastructure and public private partnership and post transaction management department.















https://punchng.com/fg-halts-refineries-privatisation-says-ajaokuta-steel-problem-complex/

Hahahaha

Who else saw this coming with this confused government?

All to shore up Dangotes monopoly

Buhari should just go

BMC don tell us sey Ajaokuta don complete 99%.

Privatization is a good political and economic decision. Thatcherism will remain in the hearts of even unborn UK citizens because through privatization, the Iron lady set the Brits free from an obvious post-war crisis. She did not only sell off national assets to private investors, but also sponsored legislations to weaken trade unions to prevent incessant industrial actions that came with the privatization policy of Great Britain .

Privatization does not seem to work in Nigeria because Company A that has met 70% of what it takes to manage the previously termed "national company" according to International best practices will not win the bid to take over the company. It is company B that just got incorporated not more than 6 months with just a company name and a storey building to that name that will win the Bid because Company B's owner comes from a certain part of the country or knows someone who knows someone.

Lalasticlala.

Aja kini?

FG should sell this shit that been milking the country since 18bc

"The Federal Government has halted its plan to privatise Nigeria’s refineries following demands by the Nigerian National Petroleum Corporation to allow the corporation revamp the dormant facilities..."

Is the NNPC mad? Same NNPC whose moribund refineries process no oil but posted unimaginable debts and deficits as overhead costs thereby worsening the economy burden of Nigeria? Where will the money come from? They still don't want to let go of the corruption they are perpetuating using these moribund national assets.

ogododo:
BMC don tell us sey Ajaokuta don complete 99%.

Sarrki as usual was overhyping that the Ajaokuta steel complex has roared back to live back then because they turned on the turbines that have been lying comatose for donkey's years.

Racoon:

Sarrki as usual was overhyping that the Ajaokuta steel complex has roared back to live back then because they turned on the turbines that have been lying comatose for donkey's years.

Those BMC abi wetin dem be, devil self go fear for their lies.

Another setback

baralatie:
Another setback

De plant don de obsolete, new technology needed.

Racoon:
"The Federal Government has halted its plan to privatise Nigeria’s refineries following demands by the Nigerian National Petroleum Corporation to allow the corporation revamp the dormant facilities..."

Is the NNPC mad? Same NNPC whose moribund refineries process no oil but posted unimaginable debts and deficits as overhead costs thereby worsening the economy burden of Nigeria? Where will the money come from? They still don't want to let go of the corruption they are perpetuating using these moribund national assets.

aboki can't allow refineries to be sold to private coy.
Na their people full there.

Otuegbe:
aboki can't allow refineries to be sold to private coy.
Na their people full there.

Come Warri self, na dem full ground and nothing dey work!

Confused and rudderless government ...

Maxymilliano:
Confused and rudderless government ...

My problem na youth wey dey shout before election that de plant is 99% complete. I don enter the plant several times, each successful government just dey suffer from Stockholm syndrome. With Ajaokuta functioning, 45% of unemployment will be gone. This can even generate more than oyel.

Steel na im made Germany.