Ibe Kachikwu, a
ministerial nominee and group managing director of the Nigerian National
Petroleum Corporation (NNPC), has revealed that Nigeria is losing in excess of ₦3trillion annually to lack of Petroleum Industry Bill (PIB). “The investment that we
are losing on an annual basis because of the lack of PIB, is in excess of US$15b
(₦3tr)
a year, and the reason is simple,” he said while addressing the senate on
Wednesday.
“It
would have been better that you didn’t start at all, then announce very
flamboyantly that you were going to do PIB then step back from it, because it
increases the level of uncertainty that no international investor wants to
grapple with.
TheCable report continues:
“So
I would urge this very revered senate to very quickly come to terms and find a
way of working with us, to go ahead and pass those elements of PIB where there
is no much contention.”
He
allayed fears of scarcity, reiterating that Nigeria has refined fuel to last
the country for 40 to 50 days to say the least, with no plans to reduce PMS
pump price.
“Refineries
today are operating at about 25, 27 percent capacity. I know there have been
numbers bandied about with performance level of 65 percent. That’s not
true and I have advised His Excellency as such.
“When
I joined, the first thing I did was to put a clarion call to all the managers
of the refineries, and I said the success of your job depends on these
refineries and how you work.
“If
we can’t run them, then we need to get out, make adequate arrangement,
privatize them and take them out.
“Whenever
you don’t run a refinery well, every barrel of crude that is sent into that
refinery produces less. Today, if you send a US$52 crude, you produce an income
of about US$15 to US$20. So from point one, you’re already losing money.”
He
however added that the Port Harcourt refinery is producing at 67 percent
capacity.
“Our
intent is to grow Port Harcourt to about 70, 75 percent by the end of the
year,” he said.
“Both
Warri and Kaduna are shut. We just finished repairs on the pipelines, we would
begin pumping crude into Kaduna refinery tomorrow (Thursday) and over the next
four five days, they would get the stock that they need to get the plant
kicking.”
He
argued that any refinery that “produces below 60 percent is no production,
because the reality is that the performing capacity of refineries worldwide are
in the 90 percent and above categories. That’s when you begin to make yields
that turn into a profitable refinery.”
He
urged the country to let go of disgraceful importation of crude, which it has
in excess, adding that the price of importation is exorbitant.
“It’s not only disgraceful
that a country that has so much resources to be able to produce its own product
where neighbouring countries like Ghana and Chad are beginning to run their own
refineries and produce their own product, but it’s also the fact that the cost
of imported products are exorbitant.”
I Did Not Allow Absence Of PIB Constrain
Me As NNPC Boss – Kachikwu
Daily Post reports that the
Group Managing Director of the Nigeria National Petroleum Corporation, NNPC,
Dr. Ibe Kachikwu, after over an hour’s drilling before the Senate has disclosed
that Nigeria losses billions yearly due to the absence of Petroleum Industry
Bill, PIB.
He
clarified that this would not have been the case if investors had not been
exposed to the uncertainties surrounding the passage of the bill.
Kachikwu
also revealed that he told himself at the time of taking up the NNPC plum job
that he will not allow himself to be constrained by the absence of the PIB in
carrying out what needs to be done in the sector.
While
observing that the holistic passage of the PIB would not be easy to achieve, he
stressed that the bill should be passed piecemeal such that critical aspects of
it would be separately considered and passed.
While
explaining the cause of the latest fuel scarcity, he said it was because some
petroleum stations closed down following rumours that the pump price of the
product would be reduced to N57/litre. He assured the public that the scarcity
will be over in a day or two as NNPC had officially debunked the reduction
rumour, adding that, “We have enough products in this country to last us the
next 40, 50 days.”
On
the skills he hopes to bring into government from his experience in the private
sector, the proposed minister gave the first as transparency which he said he
has already kick started, while the other is speed in view of the fact that
“time is money.”
Speaking
on subsidy, he said those in the private sector would prefer that subsidy is
removed, but the removal can only be possible after palliative measures are
concretely put in place. He acknowledged the weighty effect of subsidy on the
nation, but feared its negative impact on Nigerians. He however assured that
talks were ongoing with the president and other stakeholders on how to address
the issue of subsidy.
He was after the long
drilling asked by the Senate to take a bow and go.
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