|
Tuesday, 02 December, 2008 01:39 am
|
| Re: Federal Government Earmarks $60M for Refineries |
|
|
| Monday, 17 December 2007 | ||||||
     Office of the Executive President of the Federal Republic of Nigeria, Aso Rock Villa, Asokoro District, Abuja. Dear Sir, RE: FEDERAL GOVERNMENT EARMARKS $60M FOR REFINERIES It is painful to see a country like Nigeria, that is blessed beyond measure with so much minerals and natural resources, that has the potency to transform the living standards of its citizenry to an unprecedented measure of wealth and riches, but yet, have not been able to outstretch its tentacles of focused leadership with the passion to deliver this 'richness', that are all embracing for its citizens to have a taste or modern life. Mismanagement, misappropriation and unfocused leadership pioneering has caused the nation to constantly evolve round the circles of what has proven not to work in the past, to being repeated periodically. And, it is rather unfortunate that the Federal Government of Nigeria is at it again, with its recent disclosure of setting aside a whooping sum of $60M (sixty million dollars) for what it called "periodic maintenance" of the refineries, and not a Turn Around Maintenance (TAM), as was used in the past. It also established that $20M (twenty million dollars) will be used for each refinery, thereby, making it three (3) refineries that will get the sum for maintenance. However, one can not help but ask is there any difference between a Periodic Maintenance and a turn Around Maintenance? We do not think so, the bottom line is that maintenance is required to make the refineries work, but looking at the history of how these refineries are run, (considering the huge amount set aside for it every time) and maintained, we definitely know that this will not work, basically due to one single factor: corruption in high and low places of the Nigeria National Petroleum Corporation (NNPC) in the oil and gas sector. Let us establish the fact that the nation's refineries have not been functioning for years now, basically due to one problem or the other. Most times, it is either a Turn Around Maintenance (TAM) is required or a break down of some sort in the refineries that needs to be fixed. Now, they have deviced another name for it; Periodic Maintenance, which we strongly believe its just the same techniques/methods of maintenance in the past. And this TAM or whatever the call it has never worked, for more than a couple of months, after which they break-down (again) and pack-up, (despite the huge amount expended to make them work). The truth is, the TAM is another conduit pipe (an avenue/opportunity) that is used to siphon money in high and low places of the oil and gas sector (of the NNPC). The sorry state of the refineries has made the country to resort to full-scale importation of refined petroleum products to satisfy the demands of the domestic populace. But we need to really think and ask, why are the refineries not working, despite the millions of dollars spent on them? How come shell (SPDC) with over 1000 live crude oil wells, 87 flow stations, 8 gas plants, and about 8 to 14 gas compressor stations, 2 export terminal facilities and their subsidiaries such as SNEPCO (operating the popular Bonga field /facilities and the Sea Eagle) and LNG in Bonny, all operating in the same environment with the NNPC, but yet, all of these are functioning. Apart from the activities of militants, vandals and the unrest in the Niger Delta Region, that is disrupting the activities of Shell (SPDC) and other oil/gas multinational companies, these foreign conglomerates are all functioning well, without which the nation's oil and gas sector will be crippled completely. We have never heard of a publicized "Turn Around Maintenance" in these oil/gas multinational companies. They have put in place a system, that would keep their oil and gas facilities functioning, while constant and purposeful maintenance will be going on. This has made them not shutdown completely, any of their facilities as a result of one maintenance or the other. This is enough reason to conclude that the epileptic state of Nigeria's refineries, is largely due to the unaccountability of the leadership arm(s) of the NNPC and its subsidiaries like, the Nigeria Gas Company (NGC), Nigeria Petroleum Development Company (NPDC), the Pipelines Product and Marketing Company (PPMC) and the rest, which are saturated with corruption. This has made the NNPC and its subsidiaries not to work, but unable to achieve any positive desired results or objectives for which they were established in the first place. For the fact that Nigeria as nation (with its abundant oil/gas resources), is still exporting crude oil and heavily dependant on the importation of refined petroleum products, is enough reason to declare the NNPC and its subsidiaries as ineffective bodies that should be done away with. The Group Managing Directors (GMD) of NNPC, Abubakar Yar'Adua, speaking on the money earmarked by the Federal Government said, the reason for the fund was to keep the refineries working, and the reason why the refineries broke down in the past was because of the way Government was operating. But we ask, how is the government working? Will the government come and take over the leadership of the NNPC and navigate it to greater heights? Every now and then, a new government comes into power and in its bid to get the refineries working, provide enormous funds to revamp the ailing refineries to the NNPC. But the mistake the government makes (constantly), is by allowing the same set of people to be at the helm of affairs. Most of these leaders (whose mind, have been corrupted) have been circulating the NNPC for close to thirty (30) years with the same old tricks of pouring new wine in old bottles. The GMD (NNPC), blamed the neglect of the refineries and the continued importation of refined petroleum products, on the frivolous ways of oil sector superintendents, but we the problem cuts across all those at the helm of affairs which includes the GMD. The government (and the NNPC leadership) will continue to deceive themselves if they think the change of names without the change in leadership, and techniques/strategies, in the NNPC framework will turn things around, it will continue to elude them and create more problems in the country. Having the same crop/circle of people as leadership in NNPC (no matter how many times they are changed, and no matter how much billions of dollars are spent) will not help the industry and it will not work. The refineries will continue to break down after a couple of months, if drastic measures are not taken to solve the problems from its roots. As far as we are concerned, the Federal Government should sack all the leaders from the rank and file of the GMD, Group Executive Directors, Managing Directors (MDs) of NGC, PPMC, NPDC, NAPIMS, the Director General of the DPR (Department of Petroleum Resources) and others not mentioned, all should be relieved of their duties if the NNPC must move forward. The next option for the Federal Government to bring back the refineries into its expected state of function, is to privatize them. They should be sold outrightly, in a transparent manner and not like the style (the back door type), former President Obasanjo did in the name of privatization. What does the Federal Government have owning refineries that do not work? When it can be sold to private businessmen and multinational oil and gas companies, to rake in billions of Naira and improve the economy. The companies that will be doing the buying should have the financial base, the technical-know-how and adequate manpower to run successfully, the refineries. Since it appears that Nigeria, as a Nation, is finding it difficult if not impossible to own and run its public enterprises. That is why companies like the Delta Steel Company (DSC) and the Telecommunication Corporation like NITEL (whose inept function has led to its liberalization that brought in MTN, Globacom, Celtel, etc), turning and wearing a new look, basically due to the fact they are being handled by private corporate bodies (individuals). This same attitude should be channeled towards NNPC and its subsidiaries, outright sell-off to capable corporate multinationals / businessmen with the wherewithal, nothing less. Another aspect the Federal Government should look into is to liberalize the natural Gas Policy, so as to allow private Corporate companies to drill the abundant National Gas that is being flared (currently), refine them and sell for domestic use and the international markets, without passing through the NGC (like shell and other multinationals are doing right now). Nigeria's gas flaring accounts for twenty percent (20%) of the world total (even with the January 2008 deadline to stop gas flare, that from recent indication, seems not to be feasible), which could be ended by collecting/gathering Associated Natural Gas (ANG) and processing it into Liquefied Natural Gas (LNG). This alone can raise Federal Government earnings form natural gas by fifty percent (50%) of oil revenue by 2010, but instead, the NGC is practically a sleeping dog. We urge the Federal Government to intensity current efforts in making the existing refineries function by involving private sector investors, to take-over the NNPC, and encourage the building of more refineries. Pumping more funds into the NNPC will in no way spring-up the refineries back to life, rather it will be a total waste of time and capital resources. This is the best way forward, we urge. Cc: The Senate President Zik Gbemre National Coordinator NIGER-DELTA PEACE COALITION  Quote this article on your site | Print | E-mail
Write Comment
Powered by AkoComment Tweaked Special Edition v.1.4.6 |
||||||
| Last Updated ( Monday, 17 December 2007 ) | ||||||
| < Prev | Next > |
|---|
Latest Comments
| Nkem Owoh not dead - AGN |
|
I Hate The News Rumours are carried by enemies,spread by the ignorants,acept... |
| 01/12/08 19:47 More... |
| By Adeleke Awobajo |
| Tribe X Entertainment Presents Tonestar, Africa’s Newest Hip... |
|
Tonestar Links... First and foremost...thabnks to MyNaijaNews or printing this... |
| 30/11/08 14:18 More... |
| By Harry Baba |
| Project Fame: Remaining students go on probation |
|
urgent update i will like to recommend this website for the good job they ... |
| 30/11/08 12:03 More... |
| By frank |
| Pastor Mrs. Folu Adeboye's 60th birthday |
|
long life and prosperity i wish you a properous new year and all the best in Christ J... |
| 30/11/08 11:47 More... |
| By SIS RUTH |
