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Economy

National Assembly Spends N10 Trillion on Refineries with Little to Show

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modular refineries

In a shocking revelation at the Platform Nigeria symposium held on Monday, October 2 in Lagos, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, disclosed that the National Assembly has squandered over N10 trillion on Nigeria’s refineries, all of which remain non-operational.

Oyedele went further to advocate for the sale of these underperforming assets.

He argued, “Nigerians should come together and say please make sure that our refineries do not work. We should sell them.”

Oyedele explained that the cost of processing crude oil in Nigerian refineries is exorbitant due to inefficiencies, and selling them might be the only viable solution.

This revelation comes on the heels of the National Assembly’s announcement in August 2023 to probe the alleged N11.3 trillion spent on turn-around maintenance of refineries between 2010 and 2020.

The House of Representatives Committee Chairman on Public Accounts expressed concern over the deplorable state of the refineries despite massive financial injections.

Meanwhile, the government has initiated another round of refinery rehabilitation for Warri, Kaduna, and Port Harcourt refineries.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, has stated that all refineries will be operational between December 2023 and 2024.

Supporting this call for privatization, oil and gas analyst Dan D. Kunle highlighted the government’s inefficiencies in managing the sector.

He argued that the private sector, known for its efficiency, should take over operations in the oil and gas industry.

Kunle also lamented the underutilization of critical components within the Warri refinery, which, if privatized, could stimulate the country’s tire industry.

The debate over privatization versus government control in the oil and gas sector continues to intensify, with growing consensus that inefficiencies must be addressed for the industry to thrive.

As Nigeria grapples with the costly legacy of non-functioning refineries, the nation faces a critical choice in charting the future of its energy infrastructure.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Economy

Tinubu Forms Economic Advisory Committee with Private Sector Titans

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Bola Tinubu

In a bid to address Nigeria’s economic challenges amidst soaring inflation and currency depreciation, President Bola Tinubu has announced the formation of an Economic Advisory Committee with influential figures from the private sector.

The decision follows a high-level meeting held at the State House in Abuja, where key stakeholders deliberated on strategies to stabilize the economy and mitigate the rising cost of living.

Among the notable members enlisted to the committee are Tony Elumelu, Chairman of United Bank for Africa, and Aliko Dangote, Chairman of Dangote Group, both distinguished figures in Nigeria’s business landscape.

The inclusion of these private sector titans underscores Tinubu’s commitment to engaging diverse perspectives and expertise in charting a path towards economic recovery.

Speaking on behalf of the federal government at the meeting, President Tinubu emphasized the imperative of collective efforts in revitalizing the economy and ensuring a brighter future for all Nigerians.

He underscored the importance of addressing pressing issues such as food security, job creation, and the stabilization of the exchange rate.

In response, Aliko Dangote expressed optimism about the committee’s potential to generate actionable recommendations that would foster economic growth and alleviate poverty across the nation.

Similarly, Tony Elumelu highlighted the significance of implementing effective policies to drive employment opportunities and enhance food security.

The committee’s mandate encompasses a broad spectrum of economic concerns, including currency stability, inflation management, and fiscal policy reforms.

As Nigeria grapples with the multifaceted challenges of a turbulent economy, the collaborative efforts of government and private sector stakeholders signal a proactive approach towards finding sustainable solutions and restoring confidence in the nation’s economic prospects.

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Federal Government Halts Cooking Gas Export to Lower Local Prices

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cooking gas cylinder

In a bid to stabilize domestic prices and meet rising demand for cooking gas within Nigeria, the Federal Government has announced a temporary halt on the exportation of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.

This decision follows a significant surge in the cost of cooking gas, which has placed a strain on consumers across the country.

According to reports, the halt in LPG export aims to increase the availability of the commodity within Nigeria’s borders, thereby reducing its local price.

The move is part of broader efforts to address the challenges faced by consumers grappling with the high cost of living.

In recent years, the demand for cooking gas has steadily increased in Nigeria, driven by urbanization, population growth, and a shift towards cleaner energy sources.

However, despite being a major producer of LPG, Nigeria has struggled to meet its domestic demand due to insufficient local production and distribution infrastructure.

Data from the Nigerian Midstream Downstream Petroleum Regulatory Authority reveals that while the total consumption of cooking gas in Nigeria has been on the rise, the country has relied heavily on imports to bridge the supply gap.

The recent decision by the government underscores its commitment to prioritizing the domestic market and ensuring that Nigerians have access to affordable cooking gas.

Consumers have been grappling with escalating prices, with reports indicating a significant increase in the cost of refilling a 12.5kg cylinder of cooking gas in major cities like Abuja, Lagos, and Kano.

The decision to halt LPG exports signals a proactive measure by the government to mitigate the adverse effects of rising prices and alleviate the financial burden on households across the nation.

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Manufacturing Sector Records 7.70% Quarter-on-Quarter Growth in Q4 2023

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German manufacturing

In the fourth quarter of 2023, Nigeria’s manufacturing sector grew by 7.70% year-on-year, according to the National Bureau of Statistics (NBS).

The surge in growth reflects a significant uptick from the preceding quarter and underscores the resilience of the manufacturing industry amid economic challenges.

This growth trajectory indicates positive momentum and signals potential opportunities for economic recovery and development.

The manufacturing sector, comprising thirteen key activities ranging from oil refining to motor vehicles and assembly, demonstrated notable dynamism across various subsectors.

This growth surge is attributed to increased production, enhanced operational efficiencies, and strategic investments across the manufacturing value chain.

Despite facing headwinds such as supply chain disruptions and regulatory uncertainties, the sector’s robust performance underscores its pivotal role in driving economic diversification, job creation, and industrialization efforts in Nigeria.

Moving forward, sustaining this growth momentum will require continued policy support, investment in infrastructure, and efforts to address key bottlenecks hindering the sector’s expansion.

By fostering an enabling business environment and promoting innovation and technology adoption, Nigeria’s manufacturing sector can further catalyze inclusive economic growth and contribute significantly to the nation’s development agenda.

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