The Group Managing Director of the Nigeria National Petroleum Corporation NNPC, Mele Kyari has said that the agency’s huge investment in equities in the Dangote Refineries Ltd is a well thought-out, calculated idea by the federal government.
Kyari told the House of Representatives Committee on Finance at the ongoing public hearing on the 2022 – 2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP),that the decision to invest in the refinery was among other considerations to guarantee steady energy supply in the country
He said: “our decision to take equity in Dangote refinery was a well calculated decision.
“Today we ‘ve to import 100,000 liters of premium motor spirit on daily basis. The decision ‘ll guarantee steady energy supply in the country” he said
He told the committee that what was important in the oil sector is cost and price.
He said the production capacity of the nation’s economy in the oil sector is dwindling as only 1.79 billion barrels of crude oil was produced in the country in 2020
He further said that the oil production challenge is compounded by the activities of thieves and vandals in the nation’s oil terminals hence the low output compared to the previous years.
The GMD further hinted that the Sanford refinery when operational would be producing 300,000 liters of premium motor spirit on daily basis.
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He added that the company is situated at free trade zone of the country adding that the petrochemical component of the refinery would make the investment morning profitable.
He however told the committee that the tendering for the contract for the rehabilitation of the four existing refineries in Port Harcourt, Warri and Kaduna is at an advanced stage of the procurement process and the contract would soon be awarded.
He had dismissed the idea of starting the process of establishing a new oil refinery in the country as out of place noting that it would cost as much as twelve thousand dollars $12,000 to set up such oil refinery in Nigeria for the citizens.
