We have three refineries…none of them is performing at 20% capacity utilization.
A. Kaduna Refinery 18.78%
B. Warri Refinery 14.28%
C. PortHarcourt Refinery 19.52%
What exactly is so hard in refining crude oil? Our oil is the best in the world, low sulfur, easy to refine. The Biafrians did it, during the civil war, even today there are boys in the creeks of the Niger Delta “refining” crude oil….we have new management….but cant refine crude oil….
However a private company, the Niger Delta Exploration & Production Company operates a mini refinery at Ogbele with a current slated capacity of 1,000bpd generating revenues of US1m per month. The company was the first private refinery in Nigeria to receive an operating licence by the Federal Government.
The NDEP Limited refinery produce a range of refined products including diesel, kerosene and marine diesel.
How are private companies able to successfully operate refineries and the NNPC cannot? the answer is that the NNPC is a “government owned” institution trying to do private business.
No private investor will buy crude oil in USD, refine in Nigeria then sell in Nigeria at Naira prices….it wont work
1. Pass the Petroleum Industry Governance Bill, (Previously called the PIB)
2. Scrap the Petroleum Product Pricing & Regulatory Agency and with it the government fixing of prices of petroleum prices. Let the market determine prices at the pumps. the prices at the pumps will rise, then fall as competition and more supply comes in.
3. Take the Government out of business, let the Government focus on laws, policies quality control etc
4. lets look at smaller, refineries at Local Government level, easie to fund, easier to set up and operate.
The Government is not incompetent, but the motives of the Government and the Private Sector are different. Both must wok together, but the Government cannot, own, then manage assets in a private sector driven economy…
its our problem, we can fix it….