Nigeria needs $500 million to revive refineries, says Kachikwu

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Group Managing Director, GMD, of the Nigerian National Petroleum Corporation, Ibe Kachikwu on Saturday, said that the corporation needs $500 million to rehabilitate the nation’s ailing refineries back to it required capacity output.

Kachikwu who disclosed when he spoke as a guest speaker at a luncheon organised by The Petroleum Club Lagos, said the decision to seek fund to be repaid over the next seven to nine years is in line with the transformation of the NNPC to become an autonomous business venture.

On revealing his action plans, the NNPC chief said he has adopted some measures including the unbundling of the corporation, cancellation of offshore processing agreement, OPA, crude swap and other unprofitable business models, which will help make the NNPC a profitable company.

The Minister-designate said the two of the refineries would be shut down for eight to nine months for quick repairs, while the remaining, which are better in shape would be used to supplement imports. They would be shut down after the other two are back on stream.

He maintained that to turn NNPC from its current loss to profit position, next year will be the most challenging in the transition and transformation programme of NNPC and the oil industry.

“From 2016, we (NNPC) will have a budget and work within the budget. There will be no arbitrary deductions from the corporation’s revenues because it belongs to the government.

“Other important projects and activities not covered by the budget, the corporation will seek external funds like any other company, which it will repay. We have made our books open and transparent.

“Our accounts will be audited, and financial organizations that lend would be able to know the state of the company and basis for which they will lend,” he concluded.

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