Former vice-president, Atiku Abubakar has faulted the Federal Govt Council’s approval of $1.5 billion for the rehabilitation of Port Harcourt refinery, Rivers state.
In line with the previous Presidential candidate of the Peoples Democratic Get together, the approval of $1.5 billion to renovate the Port Harcourt refinery is suspicious at least. He additionally identified that Shell Petroleum Growth Firm final 12 months offered its Martinez Refinery in California, USA, which is of an analogous measurement because the Port Harcourt refinery for $1.2 billion.
Atiku who additionally famous that Shell Martinez Refinery is extra worthwhile than the Port Harcourt Refinery, averred that the price of renovation of the Port Harcourt refinery seems prohibitive.
$1.5 Billion To Renovate The Port Harcourt Refinery Is Suspicious At The Least.
That Nigeria’s economic system is in dire straits is a reality well-known each to the nation and to our worldwide companions. Unemployment has simply reached an all-time excessive of 33%, whereas inflation has hit one other report excessive of 17%.
At this vital interval, we should as a nation be prudent with using no matter income we will generate, and even when we should borrow, we should achieve this with the utmost accountability and self-discipline.
To due to this fact funds the sum of $1.5 billion to renovate or flip across the Port Harcourt Refinery would look like an unwise use of scarce funds at this vital juncture for an assortment of causes.
First, our refineries have been loss-making for a number of years, and certainly, it’s questionable knowledge to throw good cash after unhealthy. At different instances, I’ve counselled that the very best plan of action can be to privatise our refineries to be run extra successfully and effectively.
Furthermore, the associated fee seems prohibitive. Too prohibitive, particularly as Shell Petroleum Growth Firm final 12 months offered its Martinez Refinery in California, USA, which is of an analogous measurement because the Port Harcourt refinery, for $1.2 billion.
We should keep in mind that the Shell Martinez Refinery is extra worthwhile than the Port Harcourt Refinery.
Given this discrepancy, may we ask if there was a public tender earlier than this price was introduced? Was due diligence carried out? As a result of we’re actually not getting worth for cash. Not by an extended stretch.
We can not as a nation anticipate to make financial progress if we proceed to fund inefficiency, and we’re going too deep into the debt lure for unnecessarily overpriced tasks.
Our nationwide debt has grown from ?12 trillion in 2015 to ?32.9 trillion at this time. Certainly that’s surprising sufficient to trigger us to be extra prudent in the best way we commit future generations into the bondage of bonds and debt.