No country can maintain a positive per capital income if it continues to refine her products outside the shores of its country. Nigeria’s local refinery challenge is like the flame of a blowlamp that can go off anytime but it requires the will of our leaders.
It is no longer news that the Nigerian economy is heavily dependent on oil sector, which accounts for 95 percent of export earning and about 40 percent of government revenue, according to the International Monetary Fund.
The data obtained from National Bureau of Statics shows that Nigeria has spent N1.14tn on the importation of Premium Motor Sprit (PMS) popularly called Petrol in 2015; N1.63tn in 2016; N1.97tn in 2017 and N2.95tn in 2018. What this means is that we have spent about N6.55tn on importation of petrol in just few years.
We will recall that the Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, said that Nigeria needs about $1.2 billion to repair and bring three refineries to 100 percent production level. It means if we have about N432 billion, we would have our three refineries functioning at full capacity. This might not look rosy as painted as there are other parameters which ordinary citizens are not privy to but, being the largest producer and exporter of crude oil in Africa, it is pathetic to say the least, and more absurdly is the fact that it is the largest importer of refined products.
There are five refineries in Nigeria, of which four plants are owned by the Nigerian Government thorough the Nigerian National Petroleum Corporation (NNPC) namely: Port Harcourt refinery, Warri Refinery, Kaduna Refinery and Indorama Eleme Petrochemicals Company Limited while the fifth is owned and operated by Niger Delta Petroleum Resources (NDPR)
The past approaches have been like a horse shaking off flies with its tail oblivious of the fact that as soon as it stop to flail its tail, the flies come back more determine to snip. In other words, those who are benefiting from it would always make sure that the status quo remains the same, but it is left for those at the helms of affairs to refuse to be lured.
Some comfort can be taken from the fact that Dangote refinery would meet Nigeria’s current domestic demand and also export when operation starts fully. Similarly, the NNPC said it plans to revamp its refineries to save billions of dollars on fuel imports and has hired Italy’s Maire Tecnimont to tackle the Port Harcourt plant. The corporation also claimed they are in talks with different consortiums to revamp its dilapidated refineries. We pray the steps to fix the refinery will not founder like a boat in the reef.
But are all these the lasting solutions? Albert Einstein appropriately put it when he said, ‘’the definition of insanity is doing the same thing over and over again, but expecting different results.’’ Is it possible the Federal Government mandates the International Oil Companies operating in Nigeria to refine nothing less than 60 percent of their crude within the country?
Is it also possible for the Federal Government look at the option of privatisation and deregulation of the downstream sector of the oil and gas industry? By so doing, those refining illegally will come to the fore to register their companies and contribute more to the development of the downstream sector. The privatisation am talking about here is a consortium, for example, the Transcorp Plc, which went public. However an individual who wants to buy the refinery must signed an agreement that he will go public at the earliest possible time.
Fuel importation is like a sharp needle to a balloon in any economy. The earlier we fix our refineries the better we can have relief over us like cold water filling a thirsty gullet.
Olusanya Anjorin writes from Lagos