$ 1.5 bn to renovate Port Harcourt refinery prohibitive, says Atiku

By Lateef Ibrahim, Abuja

Former Vice President, Alhaji Atiku Abubakar has said that budgeting the sum of $1.5 billion to renovate or turn around the Port Harcourt Refinery would appear to be an unwise use of scarce funds at this critical juncture for a multiplicity of reasons.
Atiku, in a statement personally signed by him yesterday in Abuja, declared that Nigeria, as a nation, cannot expect to make economic progress “if we continue to fund inefficiency, and we are going too deep into the debt trap for unnecessarily overpriced projects”.
The cost, he pointed out, “appears prohibitive”.
Atiku noted that all the nation’s refineries have been making loss for multiple years, stressing that “it is questionable wisdom to throw good money after bad”.
The presidential candidate of the Peoples Democratic Party in the 2019 general election recalled that he had, at other times, counselled that the best course of action would be to privatise the country’s refineries, so they can be run more effectively and efficiently.
The former Vice President between 1999 and 2007, said, “That Nigeria’s economy is in dire straits is a fact well-known both to the nation and to our international partners.
“Unemployment has just reached an all time high of 33%, while inflation has hit another record high of 17%.
“At this critical period, we must as a nation be prudent with the use of whatever revenue we are able to generate, and even if we must borrow, we must do so with the utmost responsibility and discipline.
“To therefore budget the sum of $1.5 billion to renovate or turn around the Port Harcourt Refinery would appear to be an unwise use of scarce funds at this critical juncture for a multiplicity of reasons.
“First of all, our refineries have been loss-making for multiple years, and indeed, it is questionable wisdom to throw good money after bad.
“At other times, I have counselled that the best course of action would be to privatise our refineries, so they can be run more effectively and efficiently.
“Moreover, the cost appears prohibitive. Too prohibitive, especially as Shell Petroleum Development Company last year sold its Martinez Refinery in California, USA, which is of a similar size as the Port Harcourt refinery, for $1.2 billion.
“We must bear in mind that the Shell Martinez Refinery is more profitable than the Port Harcourt Refinery.
“Given this discrepancy, might we ask if there was a public tender before this cost was announced? Was due diligence performed? Because we are certainly not getting value for money. Not by a long stretch.
“We cannot, as a nation, expect to make economic progress if we continue to fund inefficiency, and we are going too deep into the debt trap for unnecessarily overpriced projects.
“Our national debt has grown from ₦12 trillion in 2015 to ₦32.9 trillion today. “Surely that is shocking enough to cause us to be more prudent in the way we commit future generations into the bondage of bonds and debt”, he said.