IPMAN Backs Privatization of Nigeria’s Four Refineries
The Independent Petroleum Marketers Association of Nigeria, IPMAN has thrown its weight behind the call for the privatization of the nation’s four refineries, for efficiency and optimal capacity operation.
The Port Harcourt and Kaduna refineries were sold in May 2007 by former President Olusegun Obasanjo to Dangote and partners, under the aegis of Bluestar consortium at the sum of $750million, while the the privatization was reversed in July 2007 by Late President Umaru Musa Yar’Adua.
Since then, till date, the refineries have not been able to operate even at 40percent of its capacity, amid several challenges of maintenance and operation.
Speaking, IPMAN Chairman in Rivers State, Dr Joseph Obele, said following the inability of the refineries to produce in over a decade, it was obvious that Late President Yar’Adua was wrong to have reversed the sale of the refineries.
Obele said by privatising the refineries, Nigeria would free itself from spending on the refineries and allow the private sector to operate the refineries as practiced in most countries.
The IPMAN boss further tasked the Federal Government to urgently begin the process of privatizing the refineries transparently, citing Indorama-Eleme Petrochemicals Ltd. as a case study, which he said was not only functioning optimally, but expanding its operations and building new plants.
He said, “I’m convinced that the organisers of the protest that led to the reversal of the sale of the refineries would be regretting today arising from the unproductive status of the plants under NNPC.
“Against the backdrop of the ongoing consideration and debates for the privatisation of Nigeria owned refineries, IPMAN is calling on the Federal Government to immediately sell off the Port Harcourt refinery and other refineries to private firms that will ensure the operational effectiveness and efficiency of the facility.
“Petrol subsidy regime has taken a lot of money from the Federal Government, and we cannot continue to pump more money to the refineries under the management of NNPC.
“The case of Indorama Petrochemicals is a good example, the facility under NNPC was dormant and unproductive like other plants under NNPC today. After the privatisation of the Eleme Petrochemical plant to an Indonesia company, they are today expanding the plant by building more plants like the fertilizer plant and others.
There is boom of business activities within the Indorama environment. Host Communities are happy as they get constant dividend and employment opportunities.
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“Government in developed countries might be good in running businesses but records available has showed that the Nigeria government has failed in business management and as such has no business in running a business.
“The host communities of the Port Harcourt Refinery are already holding several meetings in preparation for receiving a private firm for the management of the refinery.”
