Press Release#BRING BACK OUR REFINERIES
Attention: Mrs. Diezani Alison-Madueke and Engr. Andrew Yakubu
5th July 2014
Alongside many other patriotic Nigerians, I am intensely worried that our refineries
in Nigeria have virtually become comatose.
Looking at the body language of the Ministryof Petroleum Resources and the Nigeria National Petroleum Corporation (NNPC), as the
managers of the public arm of Nigeria’s oil and gas industry, one can clearly see that
these managers are resolutely intent on the translation of Nigeria’s refineries from public
to private ownership. Strong arguments have been advanced that, like in most other
things, government has “no business with business”; and as such, the best way forward
for our refineries is to privatize them. To be clear, while one may choose to see some
substance in this argument, the truth, however, compels us to patriotically disagree and
warn that, like in most things in the Nigerian oil and gas industry, there is far much
more to this issue than what immediately meets the simple ‘trusting’ eye.
2. The big question is simple: Should Nigerian refineries translate now from public to
private ownership? Most true Nigerians will argue that the right principle for determining
this question is that of national interest. Whatever is not in the best interest of the
nation is a wrong option, no matter what arguments are advanced in the defense of such
an indefensible position. True patriots will doubtlessly ask: What is wrong in first
optimizing the operational capacity of our refineries before embarking on the journey of
privatization? Why must Nigeria hastily embark on the journey of privatization when our
refineries are clearly in a horrible state where they can only be ‘leased’ or ‘sold’ as scrap?
Who stands to benefit, if and when our refineries get leased or sold as scrap? Of course,
not the good ‘trusting’ people of Nigeria who presently own the refineries! Since the
privatization of our refineries at this moment is, in truth, not in the best interest of the
national economy, the ‘sweet’ arguments advanced in its favour are, at best, nationally
repugnant catch-22 propositions.
3. In Nigeria today, the most optimistic estimate available about the level of the
functionality of Nigerian refineries places their operation at 30% of installed capacity. All
keen watchers of the industry know that this estimate is simply upbeat. Howbeit, for the
purpose of not allowing the serious points that must be raised in this piece to be sidetracked
with mundane obscurantist arguments about forms rather than substance, let us
work with the 30% estimate. To hastily lease-out or outrightly sell-off our refineries
before optimally operationalizing them, will be a monumental fraud potent enough to
severely damage our national economy. The under-listed points will help bring this
argument into sharp focus:
a. The combined installed capacity of Nigerian refineries is 445,000 barrels of oil per day
(bopd) which translates to 34-million liters of petrol per day alongside other white
products.
b. If the operational capacity of Nigerian refineries is increased by 40% (i.e. from 30% to
70% of installed capacity), they will automatically consume 178,000 bopd more and
thereby produce an additional 13.6-million liters of petrol per day.
c. The additional consumption of 178,000 bopd by Nigerian refineries, will add an
average of $5.34m per day (i.e. N854.4m per day and N311.856b per annum) to the
Nigerian economy as the nation presently loses an average of $30 per barrel to the
corruption-infested Crude Oil Swap mechanism by which the oil industry disposes of
the allocated crude oil not consumed by the refineries due to low capacity operation.
This is definitely not acceptable to the ‘Cartel’ that has been feeding fat on the
mechanism to the horrifying detriment of the Nigerian masses.
d. Much more, the production of an additional 13.6-million liters of petrol per day by
Nigeria’s Refineries will add an estimated Four Hundred and Fifty Thousand (450,000)
more sustainable jobs to the national economy in the succeeding 12-months; a
situation that the ‘Cartel’ is not enthusiastic about its realization.
e. Furthermore, the addition of 13.6-million liters of petrol per day into the economy by
our refineries will reduce the quantum of fuel importation require by the economy
and, thereby, significantly reduce the amount of subsidy claims to which fuel
importation merchants (most of which are proxies of the Cartel) may be entitled.
f. The oil and gas sector Cartel running the Crude Oil Swap mechanism, advancing
massive youth unemployment in Nigeria and fraudulently feasting on our
commonwealth through the evil mechanism of subsidy claims, are actively working
against the laudable and patriotic mandates of the Transformation Agenda of H. E.
President Goodluck Ebele Jonathan GCFR.
4. Consequent on the foregoing, the evils of the argument of rushing-off to lease-out
or sell-off our refineries are now openly laid bare in front of our patriotic eyes. After
fraudulently appropriating our commonwealth to themselves, the Cartel is now laboring
under their self-induced misdirection to recruit our support for their plan to woo national
consciousness and instigate the reckless selling-off of our refineries which they hope to
purchase as scrap through their local and/or foreign proxies that will pose as partners.
With our own money which they have stolen from us, the Cartel will purchase our
refineries from us at rock-bottom prices as scrap. How, in God’s holy name, is this
argument tenable? Nigerians are aware that, despite the huge successes recorded in the
privatization of our telecoms industry, NITEL, having been deliberately damaged before
the takeoff of the privatization programme, has remained non-functional.
5. In the overriding interest of the Nigerian public, therefore, Nigerian Refineries
MUST not be sold in their current deplorable state! The refineries must first be
operationalized to function at a minimum of 70% of their installed capacity! After the
achievement of this optimal operational capacity, the argument should then be
advanced as to whether they should be privatized, commercialized or remain in public
ownership! For the utmost benefits of Nigerians, these are the demands of #BRING
BACK OUR REFINERIES.
Solomon Ben Olonade Esq.
08020967011; solbensaog@yahoo.com
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