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Tag: refineries

  • Despite FG spending N17tr on PH, Warri, Kaduna refineries in 20yrs nothing has happened -Diaspora group

    Despite FG spending N17tr on PH, Warri, Kaduna refineries in 20yrs nothing has happened -Diaspora group

    Despite bickering between the Dangote Petrochemical Industry and the Nigerian National Petroleum Corporation Limited (NNPCL), a group of Nigerians in Diaspora has entertained fears that the leading regulatory agency might be secretly encouraging Dangote Refinery to be monopolistic in oil distribution in the country.

    Dr. Donald Illiya, Global President of Nigerians in Diaspora Movement
    (NDM), in a statement signed Monday morning from London, United Kingdom, said the public faceoffs between the NNPCL and Dangote refinery is confusing, and might be to distract Nigerians, while the regulatory body encourages Dangote to be the sole oil distributor in Nigeria, by suppressing the state owned local refineries and hold them continually in comatose.

    “The Nigerians in Diaspora Movement have watched with perplexity the choreographed performance between the Nigerian National Petroleum Company Limited (NNPCL) and Dangote Petrochemicals Refinery, which is meant to keep exploiting Nigerians by making them pay more than reasonable pump prices for refined petroleum products.

    “For us, taking in the state of the nation’s economy and the ongoing cost of living crisis, we are of the view that Nigeria’s fate is tied to the state of government-owned refineries, which must be made functional to cause a consequential drop in the prices of fuel and a positive knock-off effect on the cost of living.

    “From our review of the murky situations around the refining, importation, supply and pricing of petroleum products, we are constrained to conclude that NNPCL and its officials are aiding Dangote Refinery to emerge as a monopoly by failing to revive domestic refineries while obscuring this fact by being publicly hostile to each other”, the statement said.

    The group, while asserting high level of corruption in the energy sector, said, despite spending over N17 trillion to rehabilitate the Port Harcourt, Warri and Kaduna refineries from 2002 to 2022, and still spending more, even under the present regime of President Bola Ahmed Tinubu, the local refineries have remained comatose.

    “We are concerned that the unfolding drama is part of a larger plot to conceal the fact that NNPCL has kept its track record as a cesspit of corruption, which is most prominent in the phantom turnaround maintenance of the government-owned refineries. From when NNPCL Group CEO, Mele Kyari assumed office in July 2019, the administration of President Muhammadu Buhari approved $1.5 billion for the rehabilitation of the Kaduna, Port Harcourt, and Warri refineries. Another N54.66 billion was spent on refinery rehabilitation from January to June 2022.

    “More funds have disappeared into the private coffers of those managing NNPCL such that additional monies have been spent even under the current government, bringing the total expenditure on refinery repairs to approximately N17 trillion on turnaround maintenance of the nation’s three refineries between 2002 and 2022.

    “The only output Nigerians have had from this huge expenditure are the ever-changing delivery dates for the refineries to resume operation. In November 2023 a December 2023 target date was announced for Port Harcourt Refinery, and by December of that year, March 2024 was announced as a new date only for this to be altered at least three other times.

    “The completion of repairs on Kaduna Refinery was set for the first quarter of 2024, but the refinery has only produced stories on why it is being delayed. Warri Refinery has not fared any better, as a similar first quarter of 2024 target date for commencement of operations, as announced by Mele Kyari, turned out to be folklore”, the group added.

    They are of the opinion that, “It is consequently plausible that the failure to make these refineries functional is beyond incompetence and the theft of the funds meant for repairing them. It is now glaring that the refineries are being kept moribund to create a favourable condition for the emergence of a monopoly. This is a tragic turn of events at a time when jurisdictions worldwide are taking bold steps to prevent predatory and monopolistic tendencies to protect citizens and businesses”.

    Nigerians in Diaspora Movement, therefore, urged “President Bola Tinubu to take decisive steps to purge the rot in NNPCL so that domestic refineries can resume production and ward off the dangers of succumbing to a monopoly, which also presents a single point of failure for the nation’s fuel supply”.

  • NNPC told to account for $20bn spent on refineries

    NNPC told to account for $20bn spent on refineries

    Nigerian Coalition of Civil Society Organisations (NICOCSO) has called on Nigerian National Petroleum Company Limited (NNPCL) to render account of the 20 billion US dollar allegedly spent for the repair of refineries since 2007.

    The call came amidst threat by the coalition to embark on nationwide protests over the moribund state of the nation’s refineries and continued importation of refined petroleum products.

    National Spokesperson for NICOCSO, Mr Segun Adebayo, while addressing newsmen in Abuja on Tuesday, stressed the need for accountability, transparency and policies that prioritised local industries.

    He said that the call had become necessary following the decision of NNPCL to import more than 1.6 billion litres of Premium Motor Spirit (PMS).

    According to him, the decision is not just a policy misstep but a deliberate move to undermine Nigeria’s local refining potential, cripple the economy and deepen the hardship faced by ordinary Nigerians.

    Adebayo said that a comprehensive account must be provided, as Nigerians deserved to know why refineries had remained dormant in spite of the enormous expenditures.

    He also said that NNPCL must inform Nigerians on the date for the commencement of operations at the three major refineries in the country.

    “Nigerians are the true owners of these refineries; they deserve transparency on the management of the facilities.

    “With the policy to encourage competition and local growth, NNPCL must step up action in support of the operationalisation of local refineries.

    “We urge President Bola Tinubu to halt the importation of 1.6 billion litres of PMS and investigate the procurement process so as to ensure transparency.

    “NNPCL’s decision to import PMS on this scale undermines our national interest, weakens our economy and delays the journey toward energy independence, and such decisions could undermine our future, if unchecked,’’ Adebayo said.

    He expressed the coalition’s commitment to ensuring that public resources were used for the interest of the people.

    “We call on all Nigerians to join us in holding the NNPCL and its leadership accountable, for a better future of our nation,” he said.

    According to Adebayo, the importation of such an enormous volume of PMS places undue pressure on Nigeria’s foreign exchange reserves.

    “With the Naira already struggling against major currencies, this decision will exacerbate the depreciation of our currency,” he said.

    He expressed the regret that for decades, billions of dollars had been spent on the repairs of refineries and yet, the facilities were not functioning.

    “None of Nigeria’s three major refineries are operational today; instead of supporting local refining, the NNPCL perpetuates a cycle of dependency on imports, stifling local initiatives and sabotaging job creation,” Adebayo stated.

  • Port Harcourt refinery to begin production month end, Warri next – Kyari

    Port Harcourt refinery to begin production month end, Warri next – Kyari

    The Group Chief Executive Officer, Nigerian National Petroleum Corporation Ltd (NNPCL), Mr Mele Kyari, on Thursday disclosed Port Harcourt refinery would begin production by end of March.

    Kyari said this after a meeting with the Senate Ad-hoc Committee, investigating the various Turn Around Maintenance (TAM) projects of Nigerian refineries.

    “In the next two weeks, production will start. We did mechanical completion of Port Harcourt, that was what we said in December 2023.

    “That means we are done with our rehabilitation work, now you are to test if this completion is okay,” he said

    On the Warri refinery, Kyari said mechanical works had been completed, adding that the facility was undergoing the regulatory compliance processes.

    He, however, said Kaduna would not be  ready until December 2024.

    Kyari said that all the crude lines were active, adding that over 450,000 barrels had been delivered into the Port Harcourt refinery.

    “Yes, there may be security issues, but also the government is responding to the situation.

    “We are happy to work with the committee and promise not to hide anything from them,” Kyari said.

    Chairman of the Ad-hoc Committee, Sen. Ifeanyi Uba (APC -Anambra), said the committee was satisfied with the information from NNPCL.

    Ubah said the committee had an understanding of when to go for oversight functions of the refineries.

    “I believe everything is positively on track.

    “We want the refineries to work and we have gotten firm promise from NNPCL on when they will begin operation.

    “The next step is to visit the refineries and assess the progress,” he said.

    The committee will meet with Kyari on March 19, on issues relating to crude oil theft.

  • FG told to declare state of emergency on refineries

    FG told to declare state of emergency on refineries

    The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has called on President Bola Tinubu to declare a state of emergency on the country’s refineries, if the economy must be stabilised.

    President of NOGASA, Chief Benneth Korie, made the call on Tuesday at a news conference in Abuja, while assessing current developments in the oil and gas sector.

    He said declaring a state of emergency on the nation’s refineries would help to retool the economy.

    “It is very important that the Nigerian government declares a state of emergency on our refineries. It will help in stabilising distribution price, not just halting importation,” he said.

    According to Korie, the Tinubu administration should do whatever is possible to ensure the refineries work and also stabilise the naira against the dollar.

    This, he said, was part of the reasons the refineries were yet to work.

    “Whatever it will take for the refineries to work, let them work.

    “So, the answer to all these increments is for our refineries to start working optimally, and the products should be sold in naira to marketers.

    “The reason our refineries are not coming on stream after rehabilitation is the exchange rate.

    “They said the Port Harcourt refinery will start working soon. I think that is the reason it has not started refining products.

    “Price of the dollar is hampering a lot of things because nobody knows how much to buy and how much to sell.

    “They are all waiting for the naira to stabilise against the dollar,” Korie said.

    The NOGASA president also called for the reintroduction of bridging claim payment to marketers since the subsidy removal was not yielding any positive result.

    He wondered why the government’s projection in the 2024 budget would be N750 to a dollar, while the black market price had moved close to N2,000.

    “The dollar might go beyond control if they fail to peg it at the N750 budget estimate.

    “We supported the removal of the fuel subsidy but the system is not working well for Nigerians to benefit from it.”

    He urged NIMASA and the Nigerian Ports Authority, to henceforth stop demanding payment of services rendered to Nigerians, in dollars.

    He said NOGASA members would soon go out of business if things continued the way they were.

    “We will all go to jail because of the loans we took from banks with high interest rates of over 30 per cent.

    “Move round the country and you will see fuel stations closing shop and being put up for sale; who will buy them? So, the government should look into it before it gets out of control.

    “Depot owners are struggling to get money from the banks. Everybody is struggling. Before now, we spent about N1 billion to import a cargo of product, but now, it takes about N15 billion.

    “By March 1, we will all run out of business because our members can’t cover their expenses, not to talk about interest; it is a suicide mission,” Korie said.

    He urged the government to clear the backlog of unpaid bridging claims still owed oil marketers.

  • Saudi Arabia agrees to invest in Nigeria’s refineries

    Saudi Arabia agrees to invest in Nigeria’s refineries

    Saudi Arabian government says it would start investing and try to revamp Nigeria’s refineries as well as provide financial support to sustain the government’s foreign exchange reforms.

    This development was made known by Saudi Crown Prince Mohammed bin Salman at a bilateral meeting with President Tinubu on the sidelines of the Saudi-Africa Summit in Riyad

    To support the Central Bank’s ongoing reforms of Nigeria’s foreign exchange regime, the Saudi government will make available a substantial deposit of foreign exchange to boost Nigeria’s forex liquidity.

    Prince bin Salman commended the economic reforms being implemented by President Tinubu and expressed the commitment of the Saudi government to supporting these reforms and enabling Nigeria to reap the full benefits.

    He said that Saudi Arabia is very eager to see Nigeria thrive under President Bola Tinubu’s administration  and realise its full potential as the economic giant of Africa.

    In addition to these, Prince bin Salman also highlighted agriculture and renewable energy as areas of investment interest for Saudi Arabia in Nigeria to help the country attain food and energy security, respectively.

    The Crown Prince hinted that the refinery investments in Nigeria will be led by the Saudi state-owned oil company, Saudi Aramco, with the revamp to be completed within a two-to-three-year timeframe.

  • Give us Nigeria’s refineries, we will fix them – Female engineers beg Tinubu

    Give us Nigeria’s refineries, we will fix them – Female engineers beg Tinubu

    The Association of Professional Women Engineers of Nigeria (APWEN), on Saturday, appealed to President Bola Tinubu to give female engineers an opportunity to fix the nation’s moribund refineries.

    Newly-elected APWEN Lagos Chapter Chairman, Mrs Atinuke Owolabi, made the call during the association’s public lecture and Annual General Meeting in Ikeja.

    Owolabi assured that female engineers spread across the various arms of the profession could fix the refineries within a year.

    “All women engineers are ready to come together and see how we can proffer solutions, making sure that we revamp these refineries.

    “So, we call on our president to challenge female engineers to revamp and rehabilitate these refineries, and I want to assure you that, within a year, just challenge us, we will make sure that the refineries would be put to operation by the grace of God,” she said.

    She said any nation aspiring for development must empower its indigenous engineers and manpower.

    “It is imperative that our homegrown engineers are empowered and granted the right opportunity to showcase our competence,” she said.

    She said women had inbuilt natural qualities of being good managers and being excellent, adding that their talents should also be explored in building roads and other critical infrastructure.

    Owolabi said Nigeria should reduce reliance on foreign experts and give opportunity to local engineers who are equally or more competent than their imported counterparts.

    “I want to also implore our leaders, especially our president and governors, to empower indigenous engineers because we are very good.

    “A country without engineers cannot develop,” she said.

    Owolabi, a Fellow of the Nigerian Institution of Electrical and Electronic Engineers, promised that her administration would focus on mentorship and skill development for young engineers.

    She also pledged collaboration with other NGOs while reeling out planned development programmes for three Lagos communities.

    “Together, we shall shatter barriers and triumph over challenges in reaffirmation of the fact that gender should never constrain one’s potential in any domain,” she said.

    The guest speaker, Mrs Olayinka Abdul, speaking on the theme, “The Role of Female Engineers in Building Sustainable Infrastructure”, said rising fuel prices required urgent measures for green alternatives.

    Abdul, a former APWEN President, said green buildings reduce wastes, conserve energy and ensure huge energy savings and enormous long-term benefits.

    She said Lagos was investing heavily in renewable energy while listing completed and ongoing interventions in various sectors, including health, education, housing and transportation.

    Abdul said the various options available were wasting because some Nigerians have a class mentality not allowing them embrace local researches.

    She cited examples of viable technologies, developed by “our forefathers”, being ignored because people want to move with trending foreign technologies.

    Abdul advised APWEN to adopt communities and train them on how to generate power from their wastes.

    She also enumerated measures female engineers could adopt against work place discrimination and how to receive mentorship from male counterparts without bruising their ego.

    Panelists at the event proffered solutions to the multifaceted problem of inadequate water supply in Lagos State.

    They enumerated ways mentorship and advocacy could grow capacity of female engineers.

  • NNPC refutes plan to increase fuel prices amidst speculations

    NNPC refutes plan to increase fuel prices amidst speculations

    The Nigerian National Petroleum Company Limited (NNPCL) has denied any intentions of hiking the retail price of petrol in the country amid speculations and rising inflation.

    The country’s annual inflation rate surged to 24.08 per cent in July from 22.79 per cent in the month of June, according to data released by the National Bureau of Statistics (NBS) on Tuesday.

    Responding to circulating reports that petroleum pump prices could surge from the current N617 per litre to a range between N720 and N750, the NNPCL released a statement on its official platform refuting the claims.

    “Dear esteemed customers, we at NNPC Retail value your patronage, and we do not have the intention to increase our petrol motor spirit (PMS) pump prices as widely speculated.

    “Please buy the best quality products at the most affordable prices at our NNPC Retail stations nationwide,” the NNPCL said.

    It would be recalled that in May, the NNPCL adjusted its pump price as a direct consequence of the removal of petroleum subsidy as announced by President Bola Tinubu in his inaugural address on May 29.

    Following this announcement, the NNPCL directed its outlets across the country to vend fuel between N480 and N570 per litre, an increase of almost 200 percent from the initial rate of N185.

    The surge in petrol price immediately set off a chain reaction, triggering a rise in transportation fares and the cost of goods and services by varying degrees.

    In July, the cost of petrol at NNPC Retail outlets further rose to N617 per litre in Abuja and other major cities in the country and the company attributed the spike to the sway of ‘market forces.’

    The Group Chief Executive Officer of NNPC, Mele Kyari, had explained that the oil sector’s deregulation ushered in a new era of market-driven pricing dynamics.

    “We have the marketing wing of our company. They adjust prices depending on the market realities. This is really what is happening; this is the meaning of making sure that the market regulates itself so that prices will go up and sometimes they will come down also. This is what we have seen, and in reality, this is what the market works,” Kyari said.

    However, as the country’s refineries remain non-operational, the reliance on importing refined fuel subjects the cost of petroleum to the fluctuations of global market dynamics.

    Industry experts and consumers have expressed concerns that the state-owned oil company’s assurance might not hold true if market conditions shift.

  • Refineries: Reps to revisit alleged N11.3 trn spent on turn-around maintenance

    Refineries: Reps to revisit alleged N11.3 trn spent on turn-around maintenance

    The House of Representatives, says it will revisit the case of the N11.3 trillion allegedly spent by the Federal Government on the turn-around maintenance of Nigeria’s refineries between 2010 and 2020.

    Rep. Bamidele Salam, Chairman, House Committee on Public Accounts, said this while speaking with newsmen in Abuja on Thursday.

    According to him, the house intends to tackle the rising cost of petroleum products occasioned by the removal of fuel subsidy.

    Salam said the house was bothered by the moribund state of Nigeria’s refineries in spite of the huge sum of money expended in trying to put them in shape in the last decade.

    He said the era of wasting public funds on white elephant projects without consequences would soon be over.

    Salam also said the committee would thoroughly examine the accounts of the federal government and those of the MDAs in order to expose wastage, inefficiency and corruption in the public sector.

    He, however, expressed the optimism that President Bola Tinubu’s administration would reposition the Nigerian economy by fixing critical infrastructure like power, roads and rail transportation.

    According to him, this can only succeed if there is value for money on all public contracts as well as adherence of government agencies to the provisions of extant laws and regulations on budgeting, procurement and jobs certification.

    Salam said many roads, bridges, and other public infrastructure for which humongous sums of money were budgeted and spent in previous years had become dilapidated.

    The chairman added that many other projects were abandoned by contractors after receiving full payments.

    He said the increased in public revenue occasioned by removal of subsidy and a merger of foreign exchange trading windows, would only make the desired impact, if government blocked wastages and strengthened its audit institutions.

    He appealed to Tinubu to urgently appoint a substantive Auditor General for the Federation in accordance with the provisions of Section 86 of the Constitution.

    He explained that the non-appointmemt of a substantive auditor – general for close to a year, had impacted negatively on Nigeria’s public finance and accountability ratings by global organisations.

  • Nigerian refineries gulp over N11.349 trillion; duplication of projects, double payments mar rehabilitation

    Nigerian refineries gulp over N11.349 trillion; duplication of projects, double payments mar rehabilitation

    The House of Representatives ad-hoc Committee on the state of refineries in the country, says after spending N11.349 trillion to rehabilitate the nation’s refineries, it discovered duplication of projects and double payments.

    This is sequel to the report of the Committee, chaired by Rep. Ganiyu Johnson. The report was laid and considered by the House of Reps at the plenary in Abuja on Tuesday.

    In its recommendation, the committee said, drawing from observations and findings, the committee established that the state of refineries in the country from 2010-2020 was comatose.

    The committee said the refineries were non-functional, unproductive and wasteful, adding that it could not ascertain the actual cost of rehabilitating the Nigerian refineries within the periods.

    The committee said that obvious omissions were noted in the submissions made by the NNPC, adding that there were seeming duplication of projects and possible double payments.

    The committee noted that total estimated cost of rehabilitating the Nigerian refineries may be put at ₦11,349,583,186,313.40, adding that other additional actual costs reported in foreign currencies were to the tune of US$ 592,976,050.00 and £4,877,068.47 and £3,455,656.93.

    In its recommendation, the committee said that the NNPCL should take full advantage of the Petroleum Industry Act 2021, passed by the National Assembly, to fast track the rehabilitation programme of the refineries.

    It further said that the NNPCL and the contractor, Tecnimont SPA of Italy, be urged to ensure that phase one of the rehabilitation works in refinery area five of the Old Port Harcourt refinery is completed.

    This, the committee said, was with the processing capacity of 60,000 barrels per day earlier expected to be restored to 54,000 barrels per day of processing capacity, representing 90 per cent capacity utilisation by March, 2023.

    The committee said this should unfailingly meet the new target date of Sept. 2023, adding that the NNPCL and the contractor be further urged to ensure that phase two of the rehabilitation works in refinery areas 1 and 2 of the New Port Harcourt Refinery (NPHR) is delivered.

    This, according to the committee, should be with an installed capacity of 150,000 Barrels per Day, restored to the estimated processing capacity of 135,000 Barrels per day, representing 90 per cent capacity utilisation.

    This is to deliver a combined processing capacity of 189,000 barrels per day from the OPHR and the NPHR and achieve the targeted date of December 2023, among other recommendations.

  • 2023: Atiku reveals plan to sell Nigeria’s refineries if elected

    2023: Atiku reveals plan to sell Nigeria’s refineries if elected

    The Peoples Democratic Party, PDP, presidential candidate, Atiku Abubakar, on Monday revealed a plan to sell Nigeria’s refineries and what the money would be used for

    Atiku said he would raise 10 billion dollars to empower Nigerian youths from the sale of the refineries.

    He disclosed this at the flag-off of PDP’s presidential and governorship campaign rally in Lagos State.

    He said: “If I’m elected, I will empower youths with 10 billion dollars to invest in youths and employment, and people have been asking how I will get the money.

    “If I privatize Warri, Kaduna, and Port Harcourt refineries, we will get 10 billion to empower Nigerian youths. In the last 23 years, you have been governed by one family, but PDP is out to change that.”