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NIGERIA: A MAJOR OIL PRODUCER WITHOUT A FUNCTIONAL REFINERY

Crusaderhotnews 



BY *BISHOP AKHALAMHE, PhD*

Onoshoze of Edo state.


Nigeria has been Africa biggest oil producing country for decades until the crown was taken by Angola in August, 2022 due to the biggest decline in oil production, the country suffered among it's OPEC peers resulting from oil theft and sabotage at production sites.


It is unbelievable that, with this status as a major oil producer, Nigeria has no functional refinery. To corroborate this statement, the group managing Director of the Nigerian National petroleum company (NNPC) LTD, Mele kele kyari says, there is no single refinery working in the country at the moment. The NNPC manages three refineries which include: kaduna refining and Petrochemical company, Warri refining and Petrochemical company and Portharcourt refining company. It is a shame that, non of these refineries is working at the moment.


Against this backdrop, the government has resulted to refining our crude abroad, a situation which has brought untold hardship to Nigerians. The scarcity of fuel and the pain of having adulterated fuel in circulation have increased the pains of Nigerians.Methanol contaminated PMS is now imported from Belgium thereby abusing the intelligence of Nigerians. Nigerians are the most patient people in the world. They endure hardship and bad governance. It is very hard to say that, we now buy fuel at #250 per litre in the midst of poverty, suffering, anxiety and insecurity ravaging the country.


According to research, oil price hikes induce a 43 percent increase in inflation in a year. It factor into the calculus of further increasing interest rates. The international monetary fund (IMF)  said, rising oil prices may lead to high inflation and slow growth. Nigeria is facing a double-digit inflation rate with a growing fiscal deficit.


Nigerians cannot continue to bear the brunt of the government inability to fix our refineries. The petroleum subsidy was introduced by the federal government to cushion the effect of fuel importation during the shutdown of the refineries during rehabilitation known as the turnaround maintenance. The federal government cannot stop subsidy payment until our refineries are fixed. It is the only panacea.


This perennial fuel scarcity ravaging the country has to stop. Nigerians cannot continue to wear this garment of pain, agony and frustration when we have the potential and capacity to savage the situation. What a shame! We cannot even enjoy a widfall now with the sudden increase in the price of crude oil in the international market due to the Russia- Ukraine conflict as a result of decline in the country's daily oil production. We find it difficult to meet OPEC production quota of 1.830 million barrel per day due to oil theft. Who are those stealing the oil? The talakawas or the Elites. This is a question for the minister of petroleum and NNPC.


When will this pain end?


*DR.BISHOP AKHALAMHE*

Accounting scholar, Author of many Books, Educationist, Resource person, Strategic business management expert, Edo state coordinator, New Nigeria group, Two time former governorship candidate Edo state and the convener, New Edo Group (NEG)

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