•Buys 20-30% equity in 4 modular refineries
BY GODWIN OBI
The Federal Government has again projected that by the first Quarter of 2024 Nigeria will put an end to the importation of petroleum products for domestic use.
This is as it has reiterated for the umpteenth time, that fuel subsidy was no longer sustainable.
Minister of State for Petroleum Resources, Timipre Sylva, stated this at the 16th edition of the PMB scorecard series in Abuja.
The minister said by the first quarter of 2024 the rehabilitation of the Port-Harcourt Refinery would be partly completed, while the 650,000 barrel per day (bpd) capacity Dangote Refinery would also be on stream.
Sylva specifically said that the 60,000 bpd capacity refinery within the Port-Harcourt Refinery complex would be ready for production by Quarter one of 2024.
The Minister added that the Dangote Refinery, the largest single-train refinery in the world with investment of over $25 billion would also be on stream before the end of 2023 in addition to several modular refineries projects in the country.
He, therefore, assured that with the combined production of the Port-Harcourt refinery, Dangote refinery and the modular refineries, Nigeria would end importation of petroleum products into the country.
The minister disclosed that to ensure local supply of the productions by the private refineries the federal government deliberately took 20 per cent equity stake in the Dangote Refinery.
Equally, the minister said the Federal Government took 30 per cent equity stake in each of the 5000bpd WalterSmith modular refinery in Ibigwe, Imo State and 10,000 bpd Duport Modular Refinery in Edo state among others.
Sylva noted that money spent on subsidising petrol could have been deployed on provision of developmental projects across the country; just as he quelled suggestions that the price per litre of petrol could crash to as low as N40.
“…You asked if we can achieve N40 per litre? I will say ‘yes’ but this is dependent on if we are able to also achieve, within this period, improvement in exchange rate. If we can achieve one dollar to one naira exchange rate within this time, we would also be able to improve on the pricing because these things are dependent on other factors; the exchange rate is also a factor. That’s just in the lighter mood but seriously speaking, I commend the agencies under the ministry for the hard work…the management of the supply situation, under this subsidy regime, is not easy.
“We must all agree, so much money is being burnt in our vehicles but somehow, we have to scoop funds, to continue to keep the country wet…The N40 per litre pricing is not something that is realistic.
But, as you asked me, how I would feel as a private citizen, to buy petroleum product at N300 per litre, frankly, I would say I won’t feel bad knowing the kind of situation and if you compare Nigeria to other countries, then, you would also understand. If you convert the N300 to other currencies, then, you would probably understand.
“…This subsidy is not sustainable but, we will get there. Together, we will get there. You are the same people asking how we were able to sustain this subsidy but the same people would protest…sometimes, you don’t know what the average person wants but what is desirable, as far as we are concerned is to ensure that petroleum price is market-driven, which would also drive a lot of investments. But, with the subsidised regime, who is going to invest? If you build a refinery, how is your refinery going to make profit under a subsidise regime?
“Money spent on subsidy can be deployed to other developmental projects. More money would be deployed to infrastructure that would be useful to us as a country, including the development of other refineries. Also, if you take out the subsidy, a lot of people from the private sector would invest?”
The minister also disclosed that four modular refineries have been established in Nigeria and government is talking with some private investors on investments in the sector.
“Some modular refineries have been completed but still faced with the challenge of crude oil supply.
“We have taken 20 percent equity in Dangote refinery. We have also taken 20 percent equity in Azike refinery and in Walter Smith refinery, we took 30 percent and in Dupaul, we’ve taken more than 20 percent. Dupaul refinery has already concluded construction and it only remains to start operations. I’m sure within the next one month, they would start operations.”
Minister of Information and Culture, Alhaji Lai Mohammed, slammed opposition parties for telling the electorate that President Muhammadu Buhari’s administration has done nothing for the country.
““There is no state in Nigeria that is not witnessing at least a road,or a bridge or a housing project. None,” he said.
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