What is government doing about fixing refineries?

A pattern has emerged in the arguments many of the partisan and ideological critics routinely make on television stations. There is this tendency to always muddle up facts and mislead the public, notably through willful ignorance.

One point that has been erroneously made is the view that the Federal Government is not doing anything about fixing the four refineries it owns. This view is incorrect.

The Federal Government, through the NNPC in 2021, signed a deal with an Italian company, Maire Tecnimont SpA, for a complete revamp of the two refineries in Port Harcourt at a cost exceeding $1billion. The contract that will be executed in three phases is expected to bring the two refineries to full production capacity. The first phase should have been delivered by April 2023, but the company recently announced a five- month extension. The second and third phases will be delivered in 32 and 44 months respectively. By the contact terms, we should have the two refineries in Port Harcourt fully working by 2025.

In February 2023, the NNPC also signed a $741 million deal with Daewoo Engineering & Construction company to rehabilitate the Kaduna refinery. NNPCL, according to Bloomberg, signed the contract with the South Korean firm. Under the terms of the agreement, Daewoo will restore production at the moribund 110,000 barrels per day facility to at least 60% production capacity by the end of 2024.

It should be said that the facts on the ground decline to support the view that the government is not doing anything to fix the refineries. Nigeria cannot sustain the subsidy regime over the next two years when the rehabilitation of the refineries will be completed.

While it is good to have the refineries fully working alongside the Dangote Refinery, which will eventually make Nigeria a net exporter of refined petroleum products, local refining won't translate to cheap pump price of petrol. From the pricing template of petrol import, over 90% of the price per litre is determined by price of crude oil in international market. Local refining will only help in reducing pressure on the demand for foreign exchange, eliminate the cost of shipping and port charges which may not translate to more than N10 per litre in savings.

Despite this, the government is pursuing local refinery rehabilitation for energy security and enhancement of crude as stated in the national oil policy.

-Temitope Ajayi, is Senior Special Assistant to the President on Media & Publicity

With time everything will be solved

After all the fanthom promises of the APC to provide one refinery per year and revamp the of ones, all turned out to be one of their sugar coated speeches of pre-2015 despite the billions spent on TAM.

Not forgetting the humongous overhead costs of paying NNPC workers that never refined any crude oil No even apology for insulting the sensibility of a nation.

Alchemy528:
With time everything will be solved

8 years have gone past with no hope in site. While the same cabals are still seated in high peacemaking decisions again & again.

Absolutely nothing

God will punish you all

Doing? It is something that's doing the govt and not the other way round o.

Those refineries cannot be fixed again, since 2002 it has been used to siphon funds. That's why Obasanjo felt it was better and cheaper we import fuel and subsidize it and gradually remove the subsidies again, instead of wasting billions on a sick baby that has refused to heal. But the same criminals find their way to the subsidy and began manipulating it again to the extent it became difficult to carry on.

The best option would be outright sale of it to a foreign company that has the wealth to dismantle and rebuilt them afresh.

Depriest2020:
Those refineries cannot be fixed again, since 2002 it has been used to siphon funds. That's why Obasanjo felt it was better and cheaper we import fuel and subsidize it and gradually remove the subsidies again, instead of wasting billions on a sick baby that has refused to heal. But the same criminals find their way to the subsidy and began manipulating it again to the extent it became difficult to carry on.

The best option would be outright sale of it to a foreign company that has the wealth to dismantle and rebuilt them afresh.

You sound like someone working for one of the emerging refinery owners right now. I may be wrong though.

What makes all the refineries unfixable if I may ask?

Port harcourt refinery nor deh work and they’ve got more than 1,000 workers resuming daily make una deh play

CodeTemplar:
You sound like someone working for one of the emerging refinery owners right now. I may be wrong though.

What makes all the refineries unfixable if I may ask?

Do you know that the monies expend on turnaround maintenance of the 4 refineries we have since 1999 can build two of Dangotes refinery?

Depriest2020:

Do you know that the monies expend on turnaround maintenance of the 4 refineries we have since 1999 can build two of Dangotes refinery?

I agree in principle but not with the money being enough for two Dangote refineries.

The reason the TAMs failed is sabotage. People entrusted with those assets are always stabbing the people in the back and filling their own pockets.

Government is financing Dangote Refinery to fix Nigeria Refineries. Democracy has failed the masses. Push Them Out. If they shoot you, just locate thier immediate family and revenge. Dont be scared, they can't so more than ENDSARS. Identify thier immediate families, yes check thier school, churches, mosque, they have companies here too.

Fight for the masses. Fight the rich. Free your Region. If three cant work together for peacefully then put them assunder for peace.
These crops of Politicians cant fix the country

CodeTemplar:
I agree in principle but not with the money being enough for two Dangote refineries.

The reason the TAMs failed is sabotage. People entrusted with those assets are always stabbing the people in the back and filling their own pockets.

The money expend runs in trillions.