People’s Democratic Party (PDP) stalwart and former governorship aspirant, Chief Sunny Onuesoke, has thrown his weight behind the call by the Nigeria Senate and experts on President Muhammadu Buhari to privatize the four refineries and other moribund assets in the country in order to finance part of its budget deficit of N6.3tn.
President Muhammadu Buhari had, on Thursday, said that his government would finance the N6.26tn deficit contained in the 2022 budget with N5tn he has proposed to borrow from local and foreign sources.
While speaking to journalists in Delta State, Onuesoke advised President Buhari to listen to the advice of the Senate and experts on the need for internal revenue generation in order to reduce its spate of borrowing and high deficit financing.
Onuesoke, who said the N6.3tn budget deficit was too big, explained that the only way for Nigeria to regain its economic glory is to avoid economic wastage by privatizing the four moribund refineries and other national assets that have become liabilities than assets to the nation.
He recalled that in spite of gulping billions in running costs for many years, the four refineries being run by the Nigerian National Petroleum Corporation (NNPC) remain in a sorry state.
He stressed that claims of turnaround maintenance and rehabilitation funded by taxpayers’ money have not helped, rather, the fortunes of the refineries have consistently worsened.
Onuesoke, who traced the rot in the refineries to incompetence of government in managing the refineries, said in a study carried out by the National Refineries Special Task Force (NRSTF) of 42 oil refineries operating in Africa in 2012, the four refineries in Nigeria recorded the worst performance in both efficiency and utilization capacity with an average capacity utilization of only 18 per cent compared to 81 per cent and 85 per cent respectively for Egypt and South Africa in the period of 2006-2009.
“It is embarrassing that Nigeria being rated as one of the biggest oil producing countries in Africa still imports petroleum products from countries like Brazil and India, which were no where on the oil map of the world when Nigeria discovered oil in Oloibiri in 1956.
“Absurdly, Nigeria has also been importing petroleum products from Niger, a neighbouring West African country which has a modest refining capacity of 20,000 bpd,” he disclosed.
He advised that the privatization of the refineries would go as far as to minimize the alleged corruption and mismanagement associated with the NNPC in relation to issues such as unremitted subsidy funds, the crude for petroleum products swap deals and also the hollow process that is TAM.
“For years, the Port-Harcourt Refinery I and II, the Warri Refinery and Petrochemical Company; and the Kaduna Refining and Petrochemical Company, have been used as conduits to cream off billions of dollars under the guise of carrying out TAM.
“The private sector might therefore fare a lot better in terms of transparency if given the chance to take over and maintain these refineries,” Onuesoke enthused.
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