Privatise four underperforming local refineries now!

OVER THE YEARS IN THE HISTORY of this economy, it has always been observed that our political leadership keeps making and repeating the same, unprofitable mistakes; a recurring issue, deliberately or inadvertently made by taking politically considered economic decisions that amount to inefficiencies and unreasonable waste of resources. Citing examples, the ruling class from independence failed the whole country. In other words, lack of true representative leadership has been why there is little investment in the economy.

To digress a little, remember that President Olusegun Obasanjo invested billions of dollars on gas turbines for power generation but, those turbines were never put into use. The entire money that was spent, wasted; and the nation is still suffering from shortage of power and electricity distribution. In another case, President Goodluck Jonathan was in power when Chevron and ConocoPhillips pulled out of Brass LNG Project, which would have benefitted the entire nation and particularly, his home state Bayelsa; and he was advised to spend huge amount at the time Nigeria was earning more than $120 per barrel from oil, and take over Chevron and ConocoPhillips interests in that project but, he never did. Interestingly, this happened at the time Deziani Allison-Madueke, (also from Bayelsa), was the Minister of Pretroleum. In 2011, they proposed 3 Greenfield oil refineries, with total daily production capacity of 400,000 barrels of crude, yet to be constructed at Lagos, Bayelsa and Kogi, or realised.

Any business venture in the real sense and meaning of it, ought to involve a targeted gain or profit at the end otherwise, the exercise amounts to mere waste of energy, unless it is classed under a charitable setting. Our national oil company, the NNPC, has a good number of subsidiaries after it was unbundled to function and operate purely as profit making ventures, than having the NNPC as a mere arm of the government organ that supervises the oil and gas operations within the economic space. This development puts all responsibilies on the shoulders of these organizations to fully operate independently from the political actors and gladiators, and without undue interference, as money making business ventures but, the status quo was compromised and shortchanged with constant unprofessional controls and influences by the politicians of the ruling parties over decades of the nation’s existence. The woes, failures and stagnancy observed in the stunted growth of the oil industry is attributable to this operational structure, added to the self centred rent seeking of the privileged in the circle of operators (corporately and individually). This brought about the questionable policies and operational modes of this sector over decades.

Without prejudice, I must remark, with due respect to any organ of the government mentioned here. The Bureau for Public Enterprise (BPE), responsible for government asset privatization is aware of the whopping sum of one hundred and twenty two billion naira (N122,000,000,000) wasted on these four domestic refineries in 2011; but still producing at an epileptic 22% installed capacity level. The actions and steps expected of them by their core mandate, if they sincerely wished the economy to grow, are abandoned to die a natural death. In the same vein, the Petroleum Products Marketing Company (PPMC), responsible for the importation of refined products; is not helping matters either, as far as the economy of Nigeria is concerned! Just in the first quarter (Q1) of 2020; 5.26 billion liters of PMS import was guzzled by consumers; in the light of our bleeding economy and the fast depleting foreign reserves. They constantly and consistently indulge in imports that do this economy no good. This operation at the downstream is carried out without recourse to infrastructural projects for domestic refining in the economy.

On the other hand, how can the trade unions in the industry; the likes of PENGASSAN and NUPENG, continue to oppose the better approach for the nation’sl economic survival, that will mitigate the problem staring in the faces of all concerned stakeholders, dangerously threatening the nation’s economic future? This strange nonchalance (very sincerely) beats one’s imagination! It is only in a situation, where stakeholders are selfishly benefitting from a skewed operational structure that has unsustainable future, especially for the national economic growth and development, which would have been mutually benefitial to all concerned, that this miopic position is being taken; at the expence of the general public and the national economy (I stand to be disproved). It is this identified scenario that has instituted the endemic corruption in the fabrics and structures of our national life and existence. Otherwise, why must the unions of the employees in the industry not think and have a long term and sustainable focus for the job market in that sector.

The huge infrastructural deficit in the country has seriously affected the economic growth and the wellbeing of the entire citizens of this country. All the identified setbacks and the causes, as enumerated can only be tackled and properly fixed, whenever the leadership and the led (put together) decide to patriotically run the affairs of governance with commitment, the fear of God and determination to succeed as a nation. In the oil sector, a catalogue of corrupt practices by all and sundary has held the nation from making progress economically. This is inclusive of the recently jettisoned notoriously manipulated and operated fuel subsidy regime.

These government owned refineries, in addition to yet another 3, as mentioned above, need to be completed and properly fixed by the FG, and thereafter quickly privatized. The expected Nigerians that shall be qualified to bid and take over these facilities are the seasoned and timetested business moguls, who have been known as genuine and serious big time players in the oil industry. Not the same old mode of “business as usual”, where unqualified opportunists that are hanging in the curridors of power will hijack the assets fraudulently. Nigeria nation should be given space to sustainably operate and thrive economically. This economy has unduly suffered more than enough economic stagnation over decades of her national life,