A former Deputy Director of defunct Department of Petroleum Resources, Engineer Sunday Adebayo Babalola, has said that it will be better for the Federal Government to privatise the nation’s four refineries.
He noted that billions of naira had been sunk into Turn Around Maintenance of the refineries without any tangible result.
According to him, the refineries are moribund and some of their parts are outdated.
He noted that the government was having financial squeeze and added that instead of the government to continue spending huge sums of money in their repairs without results, it would be better for them to be privatised.
Babalola said: “The refineries should have been privatised. But now that the NNPCL is a limited liability company, it will do better. But you have four refineries that are not working at all and you are paying staff salaries; it does not make sense. Only the govenrment can do that. You are going to use the money to repair the refineries. Where are you going to get the money from if you even keep borrowing to keep subsiding?
“They have made Turn Around Maintenance (TAM) many times on the refineries. How do you service a car that has not been working and you keep servicing it, you change parts and it has not been working and you keep spending money on it? And that is what they have been doing. Engaging in TAM on something that has not been working for a long time.”
The energy expert said that local refining of petroleum products would accelerate Nigeria’s economy.
He stated that it would increase job and business opportunities, boost the nation’s Gross Domestic Product (GDP) improve the welfare of Nigerians.
He added that it would also save a lot of foreign exchange as it would reduce the pressure on foreign exchange sourcing.
Babalola also called for concerted efforts of all the stakeholders to address the challenges in the energy sector, adding that a pragmatic, strategic and holistic approach should be activated to grow the sector.
