Why are Nigeria’s four goverment-owned refineries not serving the country after billion of dollars expenditure in maintenance?
\nThis is the $396 million question three Senate committees will be seeking to unravel as they gird their loins to repeat a probe exercise, like many in the past that have yielded no tangible results, while the Federal Government continues to spend billions to import petroleum products.
\nWorse for government, it still continues to subsidise the products.
\nAre there external forces outside the Nigerian National Petroleum Corporation (NNPC) that work hand in gloves with the corporation and other officials of State to sabotage government efforts?
\nThis and many more posers the Senate Committees on Petroleum, Downstream; Petroleum, Upstream; and Gas will seek to resolve as it got the mandate of the Upper House of the National Assembly the petroleum giant the sum of $396 million expended on Turn-Around Maintenance of refineries in the country between 2013 and 2015.
\nThe mandate of the committees is to carry out the holistic investigation on the Turn-Around Maintenance expenditures, the current state of the refineries; convoke a stakeholders conference with the aim of finding ways to revamp them.
\nThe decision to investigate spendings was reached after consideration of a motion brought to the floor by Senator Yusuf A. Yusuf (APC, Taraba Central).
\nThe lawmaker noted that the Nigerian National Petroleum Corporation has four refineries: two in Port-Harcourt (PHRC) and one each in Kaduna (KRPC) and Warri (WRPC).
\nAccording to him, the refineries were established to adequately supply and serve needs for Liquefied Petroleum Gas (LPG), Premium Motor Spirit (PMS), Dual Purpose Kerosene (DPK), Automotive Gas Oil (AGO), Low Pour Fuel Oil (LPFO), High Pour Fuel Oil (HPFO) and Aviation Turbine Kerosene (ATK) for both local consumption and exports.
\nHe recalled, \u201cThe country through NNPC has in the past 25 years spent billions of US dollars in Turn-Around Maintenance of the refineries, the latest being over $396 million spent between 2013 and 2015 without meaningful result.\u201d
\nThe lawmaker lamented that \u201cthe refineries have remained in moribund state in the last 15-20 years and is almost reaching total collapse due to lack of proposer maintenance of the facilities with a poor average capacity utilization hovering between fifteen percent and twenty-five percent per annum.\u201d
\nSenator Yusuf said \u201cdespite the huge spending on turn-around Maintenance of refineries, NNPC recently announced a cumulative loss of N123.25 billion in 10 months (January to October, 2019), putting the total revenue of facilities at N68.82 billion, while total expenses incurred was N192.1 billion within the same period.\u201d
\nHe warned that \u201csuch huge wastage and slippages amidst the nation\u2019s tight economy, if not addressed, may lead the country back to recession.\u201d
\nThe lawmaker added that such losses, when averted and combined with the huge expenditures in \u201cunder recovery\u201d on fuel pump price and properly channeled into full rehabilitation and construction of modern refineries, would positively impact on the economy and save the country from the embarrassment of importation of petroleum products and its ripple effect.<\/p>\n","protected":false},"excerpt":{"rendered":"
Why are Nigeria’s four goverment-owned refineries not serving the country after billion of dollars expenditure in maintenance? This is the $396 million question three Senate committees will be seeking to unravel as they gird their loins to repeat a probe exercise, like many in the past that have yielded no tangible results, while the Federal […]<\/p>\n","protected":false},"author":7,"featured_media":23491,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,7],"tags":[188,889,890],"class_list":["post-24140","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","category-news","tag-nnpc","tag-probe","tag-refineries"],"_links":{"self":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/24140","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24140"}],"version-history":[{"count":0,"href":"https:\/\/everyday.ng\/index.php?rest_route=\/wp\/v2\/posts\/24140\/revisions"}],"wp:attachment":[{"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24140"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/everyday.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}