“They Are Not Serious”: Former NNPC Boss Explains Why PH Refinery Will Not Attract Buyer at $2bn

• A former group general manager of planning at the NNPC has said Nigeria may not get a buyer for the Port Harcourt refinery
• This came after the NNPCL announced that it sought private companies to maintain the refinery
• He opined that the Port Harcourt refinery, owned by the government, should have been improved instead of rehabilitated

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Former group general manager of planning at the now-defunct Nigerian National Petroleum Corporation, Babajide Soyode, has explained why a private company would not buy the Port Harcourt Oil Refining Company from the government for $2 billion.

In an interview with the Punch, he voiced his reservations regarding the $2 billion proposed for the sale of the recently renovated oil refinery.

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Legit.ng earlier reported that NNPC Limited announced plan to hand over the government-owned Port Harcourt Refinery for maintenance to a private company.

It explained that the decision was made to improve the dependability and sustainability of the refinery.

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Soyode, a technical consultant for the Dangote Oil Refinery, said there was nothing wrong with transferring control of the refinery to a private company.

He noted:

“With the terms and conditions given, they don’t want anybody to run the refinery. How will you be asking me to have $2 billion to run the refinery? What is the refinery's value that I must have $2bn? How many service companies have $2bn? I thought they were serious; they are not serious.”

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The ex-NNPC boss said the government-owned refineries in Port Harcourt and other locations should have been improved not rather than being renovated.

He said:

“There is no reason why those refineries that were among the best when we built them should have deteriorated. In fact, I must tell you, the refineries didn’t deteriorate; the management deteriorated them.

“Even if the refineries are old, they can be upgraded to the latest technology. This so-called rehabilitation, let me tell you, equipment that was built in the 60s and 70s, you want to rehabilitate them to the same state? Does it make sense?”

Soyode suggested merging the three government-owned refineries in Port Harcourt, Warri, and Kaduna into one. He said this would privatise 65% of the stock.

Report claims NNPC deliberately moved revenue

Legit.ng earlier reported updated on a report that the federal government directed the Nigerian National Petroleum Company Limited (NNPCL) to transfer its finances to the Central Bank of Nigeria (CBN).

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As previously reported by Legit.ng, the NNPCL would no longer be in charge of the proceeds from the sale of crude oil.

Per a report in the New Telegraph, President Bola Tinubu instructed the CBN to assume responsibility for managing the proceeds from oil sales.

Source: Legit.ng