By NewsBits
Speaker of the house of representatives, Taajudeen Abbas, has proposed privatising the country’s oil refineries to enhance their efficiency. Abbas gave the recommendation while receiving the management of NNPCL led by Mele Kyari, the group managing director, in Abuja.
He expressed his dismay at the dilapidated state of Nigeria’s oil refineries, highlighting the excessive spending on salaries and allowances for unproductive workers.
“There is need to make these refineries have multi-dimensional uses, if there is no crude oil, are there other activities that can make the workers to be active so that why they earn is deserved?” he asked.
“I need you and your management to look at how we can turn around these decades of losses. One way to do so is to find a way to privatise these refineries; we have spent so much money and time deceiving ourselves that some businesses can be run by government.
“In the case of the refineries, we have now realised that some sectors of NNPC business can only be handled by the private sector and our refineries are one of those. The inadequacies will become manifest as soon as Dangote refinery comes on board because the competition will be there, and inefficiencies of the refineries will become more naked.
“I want you to put it as part of your cardinal objectives; let us find ways to privatise our refineries so that they can be active so that in the near future, they will be able to compete with new refineries that will come up.”
According to him, the house is concerned about the high rate of oil theft as it is draining revenue, affecting forex availability, and causing inflation in the country. He added that the house had inaugurated a special committee on oil theft to interface with stakeholders with a view to addressing oil theft in the country.
In October, Kyari said that all refineries would become fully operational, and Nigeria would become a net exporter of petroleum products by the end of 2024. The target means that Nigeria seeks to achieve high production volumes that will enable increased export value of petroleum products than imports.
