Oil Refineries: Nigeria Needs $1.2bn To Optimize Production
Nigeria’s refineries in Kaduna, Port Harcourt and Warri are struggling to produce 6 million litres of a total consumption of about 35 million litres per day.
This represents only 17% of what we consume.
To move production levels up to 50% the government will need to spend about $1.2 billion to fix 3 refineries.
Yes! Funds have been spent but it is still not enough to revamp these refineries with the newest of them built over 29 years ago.
This is what the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, seem to be saying.
The population is increasing and more persons are consuming petroleum products. The fact is that the demand and consumption of petroleum in Nigeria grows at a rate of 12.8% annually.
But petroleum products availability from local refineries has not matched demand and matching demand with supply seems to have become rocket science.
There is need to revamp the refineries and on the side-line are rumours of plans to concession the refineries.
But the Minister told reporters in Abuja that the reports of concession of Port Harcourt to Oando and Agip companies are untrue".
Kachikwu said “a technical committee set up by the government to undertake the review and selection process is yet to submit its report”.
There had been reports that government had reached agreement with the firms following which the Senate asked that the contract be stopped.
According to the minister, what has been accomplished by the committee is coming up with a holistic investment figure enough to fix the nation’s three refineries.
“We have not selected any firm yet even though some firms have shown interests.
“We need about $1.2 billion to repair and bring the three refineries of the Nigerian National Petroleum Corporation (NNPC) in Port Harcourt, Warri, and Kaduna, up to 100 per cent production level,” he said.