₦airaland Forum

Says FG is banking on private refineries to solve energy crisis

Vice President Yemi Osinbajo has restated the resolution of the Buhari administration that the Federal Government has no business running oil refineries in Nigeria.

Speaking at a virtual meeting organised for the All Progressives Congress (APC), social media bloggers and influencers at the ruling party’s secretariat in Abuja on Monday, the Vice President indicated that the Nigerian government sees the private sector as playing a bigger role in investing in and running oil refineries moving forward.

While arguing that the challenges confronting the government-owned refineries will persist if left in the hands of government, he said that government will continue to explore cheaper gas resources as an alternative.

The Vice President expressed confidence that the energy crisis in the country will ease by the first quarter of 2021 when most of the modular refineries would have come on stream.

‘If the refinery is left in the hands of government, it will continue to experience the same problem it is experiencing now. I do not think that it is the business of government to run the refinery. It should be the business of the private sector, which is why we are trying to focus on assisting the private sector to develop modular refineries,’ he argued.

Defending the decision of the Federal Government to hands off the running of refinery, Prof Osinbajo said: ‘There is a 100,000 barrel capacity refinery about to come on stream and we hope it will by the next year. It is completely private and closely located near the Port Harcourt refinery so that it can share the facilities of the Port Harcourt refinery. We are hopeful it will come on stream in the first quarter of next year.

‘There are also six modular refineries that are almost ready. There is Niger Delta Petroleum refinery in Delta State, there is another one in Imo, there is also another modular refinery in Edo State.

‘We engaged the oil producing communities to find a new vision for the Niger Delta and we tried to encourage modular refinery that will give the people in the oil producing States a stake so that the modular refinery is not just private but the people there have some stake and equity.

‘The whole idea is to support as many private refineries as possible. We are also waiting for the Dangote Refinery with 250,000 barrels capacity which is bigger than all of the government refineries put together.

‘In the next two or three months, we will see the private sector playing a bigger role and things will quickly improve. We hope that this particular effort will complete the refurbishment of the refineries which will be completed soon but I am more hopeful of the private effort been the key to the future,’ he assured.

Speaking further, the Vice President said: ‘However, we have to focus more on our gas resources because there is no reason we should have a cheaper energy source and we should not use such cheaper energy source. I believe that this is really the way to go.’

Lisaint:
All promised cancelled

Racoon:
After your government promised but failed to provide refineries as promised? After failing to rehabilitate the old refineries thereby constituting sources of economic wastage? Why was subsidy, TAM & other overhead costs being paid while they remain moribund? Let's be honest with ourselves for once.

ManirBK:
Alhaji Atiku Abubakar, presidential candidate of the Peoples Democratic Party on Wednesday in Kaduna reiterated his plan to privatise the Nigerian National Petroleum Corporation(NNPC), if elected president on Feb 23.
Abubakar spoke at a town hall meeting with ward, local government and state party leaders in the state at the Kaduna Trade Fair Complex.

He said that the NNPC had failed to serve the purpose for which it was established in 1977.
According to him, selling-off the Corporation and all the three refineries is the best option for the country, likening it to the sale of Nigerian Telecommunication Limited (NITEL).

Abubakar said Nigeria is among the biggest producers of crude, but lamented that the country still imports refined products for local consumption at exorbitant prices to the detriment of the common man.
He said, if elected President, he would deregulate the NNPC and sell it to Nigerians. the way Obasanjo sold NITEL.
However, he forgot to mention that the sale of NITEL was disastrously done.
Under Obasanjo, NITEL went through several botched sales and management turnaround contracts. First, 51 per cent of the shares was sold to a group of investors under the trading name of Investors International London limited.
The sale was cancelled after the investors failed to pay. Then in 2003, , the government approved a management turnaround contract with a firm called Pentascope. The contract was cancelled in 2005 after it became clear Pentascope did not have the adequate resources to run NITEL.
In 2005, government again offered NITEL to Orascom. This failed again, leading the government to sell it to a subsidiary of Transcorp in 2007. The sale was revoked in 2009. In 2014, the firm was sold to NATCOM, a group of investors led by Tunde Ayeni. Ayeni since then has been running it as NTEL

https://www.dailytrust.com.ng/nnpc-had-failed-to-serve-its-purpose-says-atiku-insists-to-sell-it.html?

We Won’t Sell NNPC, Refineries, FG Assures
Feb 6, 2019

The Federal Government has assured Nigerian workers that it had no plans or agenda to sell any of the nation’s refineries or the Nigerian National Petroleum Corporation (NNPC).

Speaking at the 12th Quadrennial National Delegates Conference of the NLC in Abuja, on Tuesday, President Muhammadu Buhari, who was represented by the Secretary to the Government of the Federation, Boss Mustapha, said government was determined to attain the decent work agenda, which involves opportunities for workers, saying it will deliver a fair income, security at work places, and social protection for families.

“I want to reassure you of the commitment of this administration to the issue of welfare of workers. This is evidence of numerous programmes and policies that have been initiated by this administration in promoting the interest of the wellbeing of our workforce.

https://www.independent.ng/we-wont-sell-nnpc-refineries-fg-assures/amp/

Beverlyjean:
When Jonathan was there...u curse and abused him and u made fake promises...now u understand the proverbial that its easier said than done ... u never can make real prmises unless u hv experienced it...Jonathan's government was way much better than the crap u guys offer

anonimi:
www.nairaland.com/attachments/4184367_img20160901212519_jpeg78b79ce1d41276755a59631319a61753