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- The NNPC has expressed optimism that the Port Harcourt, Warri, and Kaduna refineries will be revived
- The optimism is a direct counter to the recent statement from Aliko Dangote that he doesn’t think the refineries can work again
- Manufacturers Association of Nigeria, petroleum marketers, and other stakeholders have urged the government to sell the refineries
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Bayo Ojulari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC) has reiterated the government’s desire to restore operations at the Port Harcourt, Warri, and Kaduna refineries.
Photo credit: Bloomberg/contributor
Source: Getty Images
Speaking at the Energy and Labour Summit organised by the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) in Abuja, Ojulari dismissed calls for their sale.
He said:
“We are determined to make sure that our refineries work. The Nigerian state and the future of Nigeria’s success are above any individual of us.
“That’s what drives our determination to ensure we put in a solution that is sustainable for our refineries.”
Ojulari maintained that reviving the state-owned facilities was still in Nigeria’s best interest, insisting that privatisation would “lead to further value erosion.”
However, in a Bloomberg interview earlier this year, he admitted that previous decisions on the refineries were “ill-informed and sub-commercial.”
On Wednesday, he rejected divestment as an option, stressing instead the need for “high-grade rehabilitation” supported by advanced technical partnerships.
The Port Harcourt and Warri plants briefly reopened last year before there were shut again for maintenance, while the Kaduna refinery has been dormant for over a decade.
Photo credit: NNPC
Source: Facebook
MAN calls for sale, Dangote says refineries may not work
Billionaire industrialist Aliko Dangote had earlier stated that the refineries may never work again despite billions of dollars in investments.
According to Dangote, the government-owned refineries have gulped up to $18 billion, yet they have refused to work, Punch reports.
He said:
“And the managing director at that time convinced Yar’adua that the refineries would work. They said they just gave them to us as a parting gift or so. And as of today, they have spent about $18bn on those refineries, and they are still not working. And I don’t think, and I doubt very much if they will work.
“(The turnaround maintenance) is like you trying to modernise a car that was built 40 years ago, when technology and everything have changed.
“Even if you change the engine, the body will not be able to take the shock of that new technology engine.”
Similarly, the Manufacturers Association of Nigeria, petroleum marketers and other private sector stakeholders have urged the government to sell the facilities, citing waste and inefficiency.
BUA clarifies 90% completion reports of refinery project
Earlier, Legit.ng reported that BUA Refinery and Petrochemicals has clarified claims that its refinery project in Akwa Ibom is almost complete.
The company described reports (not from Legit.ng) that the refinery is 90% completed as misleading.
The company urged the public to disregard such claims, confirming that construction is progressing steadily and remains on track to meet its delivery timelines.
Source: Legit.ng
