Spending N120b annually on idle refineries? 

The relative dormancy of Nigeria’s refineries, in Kaduna, Warri and Port Harcourt represent a serious drain on the national purse. This has necessitated the importation of most of the country’s needs of refined petroleum products over the years. Accordingly, the usefulness of these refineries to the national economy has come into question, as the country seeks a way out of its economic quagmire. Instead of selling off these moribund and relatively unproductive national assets, the government is still spending scarce tax-payers’ money to sustain them. At a recent meeting of the Society of Petroleum Engineers, these facts were clearly brought to the fore when it was stated that the country spends a whopping N120 billion annually on these non-performing refineries. The meeting noted that it had served no purpose for the government to expend so much and sustain its ownership of the moribund enterprises with little or nothing to show for it. Ordinarily, these refineries should operate optimally and are best suited to add value when they ensure optimal operations, to at least recover the cost of their operations. It makes no sense to continue to maintain these idle refineries at great cost to the economy. 

In the main, what is the justification for spending N120 billion annually on idle refineries at a time the country needs money to fund capital projects, especially for development of critical infrastructure. What to do now? Privatise or sell off the refineries!