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Minister
of State for Petroleum Resources Emmanuel Ibe Kachikwu Photo: Twitter/NNPC
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The Federal Government is
expected to save ₦4.69 trillion yearly from massive importation of petroleum
products, as it plans to become a net exporter by end of 2019, according to
statistics released by the Federal Ministry of Petroleum Resources.
The
Guardian Nigeria report continues:
Besides,
the Ministry, which said that no financiers have been selected for the
rehabilitation of refineries in the country, disclosed that government plans to
formally engage a pool of financiers after cost estimates have been firmed up
this June.
The
ministry said that 20 million metric tonnes of Premium Motor Spirit (PMS) also
know as petrol valued at ₦3.35 trillion was imported into Nigeria from January
to December 2016.
It
added that the country spent ₦1.34 trillion yearly due to shipping and
demurrage caused by inadequate port receipt facilities, as indicated in a
document detailing Federal Government’s plans to rehabilitate the refineries on
Wednesday, made available by the Ministry.
It
said the refineries initiative (Big Win 4) seeks to change the current
landscape of domestic refining in Nigeria, by setting a target to exit product
importation by year-end 2019, adding that this will be achieved through a new
strategy that addresses operational and developmental challenges.
The
document also indicated that the ministry has concluded arrangement to
refurbish the refineries to name plate capacity through the injection of
private sector partner financing.
The
ministry added that the enabling environment would be created for the
establishment of private sector-led Greenfield and modular refineries.
Clarifying
on the rehabilitation of Nigeria’s refineries, the ministry said the tender
process was truncated in May 2016, following concerns raised by the National
Assembly and Bureau of Public Enterprises (BPE).
It
disclosed that the Nigerian National Petroleum Corporation (NNPC) engaged BPE
and secured alignment to ensure that rehabilitation process would not adversely
impact any future Federal Government privatization initiative.
It
stated: “Public tender for co-location of refineries was announced in local and
international newspapers specifically in Daily Trust Newspaper issue of Friday
15th April, 2016, and The Guardian Newspaper issue of Monday, April 18, 2016.
Received bids were analyzed and winners for Port Harcourt Refinery Company
(PHRC), and Warri Refinery Company (WRPC) were identified. Discussions are
ongoing to finalize the process with approval to be given by both the NNPC
Board and the Federal Executive Council respectively.
“Currently,
the status of existing licenses is being reviewed. General requirements and
guidance information for licensing of new refineries has been developed by
Ministry of Petroleum Resources to ensure transparency and sanity in the
process. Federal Government led efforts to eliminate illegal refineries in the
Niger Delta region seeks to promote socio-economic development, create jobs
through collaboration with States, Communities and private sector.”
The
Minister of State for Petroleum Resources, Ibe Kachikwu, said in a video
podcast on Wednesday that NNPC has taken up the responsibility of a last-resort
importer producing petroleum products in an unstable environment as prices
continues to take a big hit.
“The
country target is to cease the importation of petroleum products by 2019 and
get advantages in terms of foreign exchange conservation, job creation and stabilize
the market place in terms of pricing.
“On our refineries, we are currently seeking financing, and not concession nor sale of the refineries for it’s absolutely important to do whatever is needful in order to get the country’s refineries upgraded, enhanced, and get the Greenfield refinery builders supported, and especially get any individual to co-location refinery ownership interest,” Kachikwu added.
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