Refineries, pipelines cost FG N264bn in 1 year

2022-02-01

•As oil marketers meet minister over N3trn subsidy
The hemorrhaging of the Federal Government’s assets, including the refineries and about 5,000 kilometers of pipelines, cost the country about N264 billion in one year.

Despite the injection of funds meant to ensure that the refineries reduce the annual spent of imported petroleum products, they have continued to sink further as pipelines have failed to deliver products to the Nigerian National Petroleum Company (NNPC) Limited depots across the country.

Former Chief Operating Officer(COO), Upstream of the Nigerian National Petroleum Corporation (NNPC), Bello Rabiu, who stated this at a workshop organized by the Major Oil Marketers Association of Nigeria (MOMAN) in Lagos yesterday, maintained that the country spends over N22 billion every month on these troublesome assets.

Rabiu, in his presentation, “Challenges of equitable refining, importation, supply and distribution of PMS in Nigeria,” explained that the country spends over N22 billion every month on assets that have an albatross to the economy.

The former GED equally faulted the N9 per litre bridging cost added to the cost of fuel, saying that model is not economical because it does not add value but rather increases the cost of the product. He maintained that if the N9 per litre is removed from the cost of fuel, it eventually makes the product cheaper and more affordable.

“So this N9 per litre bridging cost is money that will make the cost of subsidy to soar.”

How many years does it take Dangote to put up his refinery that the government could not fix its refineries in 23 years? In fact, we should make this a key point of campaign for those seeking to occupy the highest office in the country. What solutions are those aspirants bringing to the table in terms of local refining capacity? We need to be more serious about all these if we truly desire to move forward.”

Meanwhile, the Chairman of MOMAN, Mr. Olumide Adeosun, has hinted that the association recently met with the Minister of Petroleum Resources, Mr. Timipre Sylva, to dialogue on the best way for the industry in view of the 18-month shift in the implementation of the Petroleum Industry Act (PIA), N3 trillion fuel subsidy among other industry issues.

He said the meeting with Sylva and other top government functionaries was to fully understand exactly how this decision would impact the other provisions in the PIA as well as market operations. On the position the group is taking over the government’s 18-month extension in subsidy removal, the MOMAN boss said that his group has resolved to continue to engage the government on this critical issue.

“The Major Oil Marketers Association of Nigeria have been approached by members of the press seeking its reaction with respect to the suspension of subsidy removal.

The members of the Association are currently seeking to consult with the Ministry of Petroleum Resources, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other industry stakeholders to understand exactly how this decision would impact the other provisions in the Petroleum Industry Act as well as market operations.

 

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