An oil and gas expert has revealed reasons Nigerian government finds it hard to fix the refineries in the country.
Speaking in an exclusive interview with our source, Tokunbo Korodo, Chairman, Nigerian Union of Petroleum and Natural Gas (NUPENG), Lagos Zone, said some major oil marketers and importers have constituted themselves to a strong cabal that they dictate and influence what goes on in the sector.
For some weeks, Nigeria has been witnessing artificial scarcity of petrol across the country due to the impasse between the federal government and oil marketers over subsidy payment.
Nigerians believe if its government can upgrade the local refineries, it will cushion the effect of the scarcity of the products.
The four major refineries in the country; located in Warri, Kaduna, Port Harcourt are in comatose. They are said to operate at less than 30 per cent capacity.
As a result, Nigeria imports fuel to complement the locally produced products in order to meet the national aggregate demands.
While spirited attempts to fix the refineries over the years have proved abortive, the supply and distribution of petroleum products is majorly at the mercy of major oil marketers in the country.
Explaining the factor behind this, Korodo said some investors who are in the business of exporting crude oil or importing petrol will never allow the product refined locally.
To them, inability to fix the local refineries keeps them in the business of importing fuel.
He laments that lack of political will on the part of the government has also contributed to the menace.
Korodo however, posits that the best remedy to the rottenness in the sector is deregulation. But cautioned must not be import-driven kind of deregulation ‘’ We don’t support deregulation that is import-driven for Nigerians. It will not benefit Nigerians’’ he affirmed.
For some weeks, Nigeria has been witnessing artificial scarcity of petrol across the country due to the impasse between the federal government and oil marketers over subsidy payment.
Nigerians believe if its government can upgrade the local refineries, it will cushion the effect of the scarcity of the products.
The four major refineries in the country; located in Warri, Kaduna, Port Harcourt are in comatose. They are said to operate at less than 30 per cent capacity.
As a result, Nigeria imports fuel to complement the locally produced products in order to meet the national aggregate demands.
While spirited attempts to fix the refineries over the years have proved abortive, the supply and distribution of petroleum products is majorly at the mercy of major oil marketers in the country.
Explaining the factor behind this, Korodo said some investors who are in the business of exporting crude oil or importing petrol will never allow the product refined locally.
To them, inability to fix the local refineries keeps them in the business of importing fuel.
He laments that lack of political will on the part of the government has also contributed to the menace.
Korodo however, posits that the best remedy to the rottenness in the sector is deregulation. But cautioned must not be import-driven kind of deregulation ‘’ We don’t support deregulation that is import-driven for Nigerians. It will not benefit Nigerians’’ he affirmed.
Dts one of d things I'm hoping Buhri will fix I.e if he hs d will oo. Buh it woul d nice to see him fix our refineries nd kick these oil mrketers out of bizness.
ReplyDeleteHmm. But they should try harder! Their must be a way
ReplyDeleteMake them try ooo please...well i just dey laugh
ReplyDeletetrue talk...buhari is not a magician but let's hope he will b positive about good governance
ReplyDeleteVery true, and that's what is affecting phcn /nep,, some thieves re benefiting from d epileptic nature of electricity in Nigeria
ReplyDeleteHe's very correct, selfish political and personal ambition is what's drawing us back too much of greed👎👎
ReplyDeleteThese must be put out of business. The incoming government should make the oil sector their priority and see how our local refineries can be put back to productive refineries.
ReplyDeleteTrue talk let just hope on God for this
ReplyDelete