Lest we forget the protracted turnaround maintenance of our refineries
Nigerians have long lost count of the promises made by the Federal Government and its petroleum managers, particularly the Nigerian National Petroleum Company Limited (NNPCL), regarding the restart of the Port Harcourt Refinery and the other refineries in the country. The turnaround maintenance project, which began in 2021, has cost an astonishing $1.5 billion and still shows no signs of completion.
The last promised date was August 2024, yet as we reach October, there is still no indication that this promise will be fulfilled. NNPCL Director General, MeleKyari, has exhausted all rhetoric without delivering results. Many frustrated Nigerians are calling for his resignation, citing his failure to reposition the NNPCL and produce tangible outcomes since he took office.
Whether such calls are justified is secondary to the reality that Nigerians are enduring a severe cost of living crisis exacerbated by rampant hyperinflation. The exchange rate has skyrocketed to over N1,600 for $1, a far cry from what once characterised the economy. This raises serious questions about the competence of our financial managers, including NNPCL.
Financial analysts are increasingly advocating for the dissolution of NNPCL. With this growing discontent, urgent action is required to rectify the issues plaguing the petroleum sector. Just yesterday, NNPCL announced an increase in the pump price of Petroleum Motor Spirit (PMS) nationwide, with prices now ranging from N1,030 to N1,500 per litre. This is particularly striking given Nigeria’s status as one of the world’s largest crude oil producers.
Adding to the frustration, NNPCL has struggled to become the sole buyer and distributor of Dangote Refinery’s petroleum products, a private entity. Many Nigerians are left wondering about the fate of our four refineries. If an individual can build a refinery in just two or three years, why can’t the federal government leverage its resources to do the same?
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has reiterated that its members are still barred from lifting petroleum products from Dangote Refinery, with NNPCL seen as the main impediment. Why should Nigerians continue to tolerate an organisation perceived as anti-people?
The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have called for an immediate reversal of the increased PMS prices. As Nigerians grapple with poverty despite the nation’s wealth of resources, rumours of politicians owning refineries abroad have intensified. Whether true or not, the saying holds that “there’s no smoke without fire.”
If our leaders want to change this narrative, they must wake up and enact people-oriented policies. These policies should focus on job creation for the unemployed youth and foster a conducive environment for businesses to thrive. Social security systems for the unemployed and elderly, similar to those in better-managed societies, are essential.
These changes are not impossible; they require placing the right individuals in the right positions. We can no longer afford to recycle the same politicians who have dominated since our independence. We cannot keep doing the same thing and expect different results.
To move forward, the four public refineries in Nigeria must be made operational, no matter the cost. The petroleum sector should be liberalised to promote healthy competition, allowing market forces to dictate prices. NNPCL must step back from price-setting while falsely claiming to have deregulated the petroleum industry.
If these measures are implemented, Nigerians may soon find themselves celebrating economic prosperity. Achieving these goals is not rocket science; it simply requires the political will to act decisively.
