Independent Petrol Marketer Faults $1.5Billion For Refinery Rehabilitation - EDU-BIZNEWS


Friday, March 19, 2021

Independent Petrol Marketer Faults $1.5Billion For Refinery Rehabilitation

A top Independent Petroleum Marketer and Chief Executive Officer of Surrey Bee Oil Nigeria Limited, Alhaji Surajudeen Bada has faulted $1.5 billion approved by the Federal Executive Council for the major rehabilitation of the Port-harcourt Refinery

The FEC approved the N600billion equivalent of the amount at its virtual meeting held last Wednesday and presided by President Muhammadu Buhari, to rehabilitate the refinery whose first phase is expected to be completed within 18months with production capacity put at 90percent 

The approval comes amidst a controversial price increase in the pump price of petrol that was later reversed.

But Bada in an exclusive chat with Edu-Biznews in Abeokuta, said the Federal Government would have opted for construction of brand new refinery , saying such rehabilitation does not quarantee that the refinery will function at full capacity or function effectively

The oil marketer who referred to several billions of naira already spent on previous turnaround maintenance  on the four refineries without meaningful result, particularly on the Kaduna Refinery which failed to function  

Nigeria according to him, needs to get new refineries, if government must end the crisis in the oil and gas sector, the last refinery was built during the Late President Shehu Shagari regime 38 years ago, technology has changed

Bada who is the Ogun State Chairman of Oil and Gas Traders Association of Nigeria described as shameful, a situation where Nigeria is still importing petroleum products, despite being the 5th largest producers of crude oil in the world

He stressed the need for the Federal Government to encourage construction of new refineries in the country, "  we believe once we have our functional refineries,  we produce what we consume, there is no need to import refined product into this country, there will not be problem of shortage in the supply chain of the petroluem product.    

The former State Chairman of Independent Petroleum Marketers Association of Nigeria (IPMAN) emphasised the need for the Federal Government to have stimulus package for Nigerians, to cushion the effect of deregulation of the down stream sector, saying "it will add to the hardship being experienced by Nigerians during this period of coronavirus pandemic, to be buying petrol at current price put at over N200 per litre , following the rise in the price of crude at the global market"

Bada insisted that government should find ways of blocking the leakages in the system, particularly around the porous border areas of the country, to check illegal movement of petrol tankers to neigbouring countries

He added that  only having the right leadership in the country could fix the lingering crisis in oil sector 

The oil marketer however asked the presidency to take advantage of the excess revenue arising from the increase in the price of crude oil which ranges between $60 and $70 per-barrel  which is above $40 bench mark for the 2021budget 

He urged government to invest heavily in the sector for Nigerians to enjoy the benefit of the current price in the global market

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