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On NNPC’s ‘ghost’ refineries

Tolulope Akinnifesi

Tolulope Akinnifesi

It was recently reported that a total sum of N69.07bn was paid to workers of Nigeria-owned refineries last year. That wouldn’t have been an issue if the said refineries had lived up to their expectations. But, it is incredulous that such humongous wages could be paid to workers in refineries that did not generate a dime in revenue.

It is disheartening that our dear country has been unable to fix its refineries over the years and has resorted to importing over 80 per cent of its petroleum consumption. This is despite the dilapidated state of the nation’s economy.

I vividly recall when in 2020, the Society of Petroleum Engineers, Nigeria Council, lamented the colossal amount of money spent on keeping the non-functioning refineries idle. I was dumbfounded when the council chairman stated that Nigeria’s refineries gulped not less than N120bn annually. Although workers are indeed entitled to their wages, the question begging for answer in this situation is, “For what services rendered”? Perhaps, for manning the unproductive refineries. What a ‘soft work’. Welcome to Nigeria where state resources are sacrificed on the altar of redundancy.

Just a few days ago, the President, Maj. Gen Muhammadu Buhari (retd), in a letter to the Senate sought the approval of the National Assembly to borrow another $4bn and €710m from bilateral and multilateral organisations to fund the deficit in the 2021 budget. This is barely two months after the hallowed chambers approved the President’s earlier request to borrow $8.3 bn and €490m.

In my humble opinion, I think it would be a wise move for the government to cut some expenses, especially on agencies that are unproductive. I consider it a shame that a country like Nigeria imports petroleum products for consumption. This is despite the fact that the country is one of the largest producers of crude oil in the world.

In this NNPC case, it is even more worrisome that the monthly salaries of workers working at the refineries just in a month is the equivalent of what workers in other more productive sectors earn annually. To what extent is this fair and acceptable? It is important to unapologetically reiterate that it serves no purpose that we have refineries (key national assets) that are sitting idle across the country.

It is as clear as the summer sky that the foreign exchange spent importing petrol could be used for more productive ventures such as buying raw materials and equipment for the country’s refineries were they to be in good condition. I find it rather appalling that the refineries posted a cumulative loss of N1.6trn from 2014-2018, while another cumulative loss of about N412.8 bn was incurred from the operations of the four refineries in 2017 and 2018 according to NNPC’s audited report published in 2020. This is indeed worrisome.

I conclude by aligning with one of the quotes of the Vice President, Prof Yemi Osinbanjo, who said, “Our vision is for a country that grows what it eats and produces what it consumes. It is for a country that no longer has to import petroleum products and develop a lucrative petrochemical industry”. I earnestly urge the government to make that quote a reality, just as they promised.

Tolulope Akinnifesi

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