Editorial
Beyond PH Refinery Rehab
Amidst the heated national discourse generated by the Federal Executive Council’s approval of the sum of
$1.5 billion United States dollars for the rehabilitation of the redundant Port Harcourt Refinery last month, the Nigerian National Petroleum Corporation (NNPC) on Tuesday, April 6, 2021, signed a contract for the project with an Italian engineering company, Tecnimont SpA, a subsidiary of Maire Tecnimont SpA in Abuja.
While the Managing Director of the Port Harcourt Refining Company (PHRC), Mr Ahmed Dikko, signed for the nation’s oil giant, Mr David Pellizola, Vice President of Tecnimont SpA for sub-Saharan Africa, signed for his company.
Speaking at the event, the Group Managing Director (GMD) of the NNPC, Mr Mele Kyari said that the sum of $162.39 million had already been provided, adding that an escrow account would be opened in respect of the project in the coming weeks.
The GMD reassured that several stakeholders from within and outside the country had been engaged to guard against fears expressed by a cross section of the Nigerian public over the cost and modalities of the project.
“We dragged in several stakeholders like the Ministry of Finance, ICRC, NEITI, labour unions, foreign technical partners and others. If we had anything to hide, we won’t do this. This is a great history for us. We are aware of the misgivings around cost, political compromises, etc,” he said.
Mr Kyari added that “We acknowledge we made mistakes in the past with regard to Turn Around Maintenance (TAM). But this is not a TAM. Major procurement and construction are involved here. We’ve neglected these refineries and TAM procedures abused. This is retrofitting. Some parts will be replaced and others upgraded, and these spendings will be published”.
According to the Federal Government, funding for the project is to be derived from the NNPC’s internally generated revenue, budgetary allocations provisions and the African Export-Import Bank.
The contractor, Maire Tecnimont SpA has also acknowledged that the project involves the provision of a suite of services for the major rehabilitation of NNPC subsidiary, Port Harcourt Refining Co. Ltd’s Port Harcourt refining complex which includes a 60,000 – b/sd hydroskimming refinery and 150,000 –b/sd full-conversion refinery.
As part of the contract, Tecnimont SpA will deliver engineering, procurement and construction (EPC) activities for the full rehabilitation project which aims to restore the complex to a minimum of 90% of its nameplate capacity over 24 – 32 months, with the final stage to be completed by the year end 2024 or 44 months from April 2021 award date.
Earlier, the project plan had elicited strong criticisms from various stakeholders across the country, one of such critics being the former Vice President of the country, Alhaji Atiku Abubakar.
According to Alhaji Abubakar, the sum to be expended on the project was prohibitive and would appear to be an unwise use of scarce resources for a number of reasons including the fact that the parent company of Shell Petroleum Development Company (SPDC) only last year sold its refinery of similar size with the Port Harcourt Refinery in the United States for $1.2 billion and wondered if there was a public tender before the cost was announced.
“Was due diligence performed? Because we are certainly not getting value for money. Not by a long stretch”, he said, adding that the Shell Martinez Refinery was more profitable than the Port Harcourt Refinery and therefore couldn’t have cost less than it would cost to rehabilitate an ailing one.
“First of all, our refineries have been recording losses for multiple years, and indeed, it is questionable wisdom to throw good money into such venture. At other times, I have counseled that the best course of action would be to privatise our refineries, so they can run more effectively and efficiently.
“At this critical period, we must, as a nation, be prudent with the use of whatever revenue we are able to generate, and even if we must borrow, we must do so with utmost responsibility and discipline,” he said, adding that “we cannot, as a nation, expect to make economic progress if we continue to fund inefficiency, and we are going too deep into the debt trap for unnecessary overpriced projects. Our national debt has grown from N12 trillion in 2015 to N32.9 trillion today. Surely, that is shocking enough to cause us to be more prudent in the way we commit future generations into the bondage of bonds and debt,” he stressed.
In the same vein, the founder of Stanbic IBTC Bank Plc, Atedo Peterside had implored the Federal Government to put the project on hold and subject it to a national debate, arguing that it was too expensive and that many experts preferred that the refinery is sold by the Bureau of Public Enterprises (BPE) to core-investors with proven capacity to repair it with their own funds.
The thinking is the same with a former President of Nigeria Association of Petroleum Exploration’s (NAPE), Abiodun Adesanya who intoned an ulterior motive of fund raising for 2023 political activities.
“The $26.5 billion spent altogether in trying to fix these refineries over the years has not yielded any results”, he said, adding that “public confidence that any of the refineries will work without selling them off to the private sector is weak”.
For Bank Anthony Okoroafor, Chairman, Petroleum Technology Association of Nigeria (PETAN), “The government has no business running refineries. They should sell the Port Harcourt Refinery for $1 billion to capable private investor who will run it profitably and pay tax to the government. The government’s role should be regulatory”.
Conversely, the Independent Petroleum Marketers Association of Nigeria (IPMAN) commended the Federal Government for the move to rehabilitate the Port Harcourt Refinery. Executive Chairman of IPMAN in Rivers State, Comrade Joseph Obele who gave the commendation in Port Harcourt said the project would employ over 25,000 persons when completed.
Comrade Obele also expressed the hope that the resuscitation of the Port Harcourt Refinery would put an end to importation of petroleum products like the premium motor spirit (PMS), otherwise called petrol, adding that the venture would also open up businesses within the host communities of the refinery and make products readily and easily available for marketers.
“It will make us have the best quality of products as against all the rubbish they are importing into Nigeria. It will make things very easy for marketers by getting products without stress. We have plenty reasons to say thank you, Mr President,” he said.
The Ijaw Youth Council (IYC) Worldwide, on its part, has described the rehabilitation project as a signal that the Federal Government has finally woken up from its slumber. According to the President of the Council, Peter Timothy Igbifa, though the reviving and optimizing of the refinery was long overdue, it was better done late than never and expressed the hope that it would create employment for the teeming jobless youths in the Niger Delta, we will be constituting an action committee to work closely with the Ministry of Petroleum and the contractors that will be in charge of the rehabilitation project. We will monitor the execution of the project from the beginning to the end and if we notice any foul play, we will surely raise the alarm”.
While The Tide supports the rehabilitation of the Port Harcourt Refining Company in the light of all the benefits accruable to the nation and the enormous economic impact to the immediate environment of the firm, we strongly advise the Federal Government to hands off the direct running of the company as it has done over the years, bringing only wastage and economic misery to the nation.
For the 32 years that the refinery has been in operation, it is evident that it has gulped more money than it has generated for the country. There is therefore no reason whatsoever for the government to continue to run it under whatever guise. This is why we insist that government should concession or privatise it upon completion of the rehabilitation work.
The delay in implementing President Bola Tinubu’s directive for zero customs duty and value added tax on food imports is unacceptable and highlights a concerning lack of urgency within the Federal Ministry of Finance and the Nigerian Customs Service. Over two months after the announcement, the policy remains stalled, despite the President’s clear intention for immediate enforcement. This prolonged delay, especially given the policy’s temporary nature (July – December), is inexplicable and detrimental to a hoi polloi already grappling with a severe economic crisis.
While the Comptroller-General of Customs attributes the delay to the Ministry of Finance finalising details, this explanation is insufficient. The dire need for food relief demands swift action, especially in the face of soaring fuel prices, rampant inflation, and skyrocketing food costs. The President’s promise of subsidised rice at N40,000 per 50kg bag remains elusive as well, pushing many Nigerians further into hardship. Accusations of deliberate slowdowns motivated by the government’s revenue goals are alarming and warrant serious investigation.
A circular from the Presidency has clarified the approved food items eligible for duty exemption, specifically maize, millet, rice, wheat, husked brown rice, grain sorghum, and beans. This strategic move aims to alleviate the financial burden on consumers and enhance food security. Previously subjected to import duties between five and 30 per cent, these commodities will now be more accessible, potentially stabilising prices in the local market.
It seems the execution of the policy is encountering obstacles due to bureaucratic processes. If the government fails to address this crisis with comprehensive and effective measures, the consequences could be catastrophic. The simmering discontent amongst Nigerians could easily boil over into widespread protests and social unrest, further destabilising an already fragile nation. Ignoring the cries of its citizens and the looming threat of social upheaval would be a grave mistake with potentially devastating ramifications.
Public officials insulated by privilege and detached from the everyday struggles of the people, have fostered a dangerous disconnect. For too long, they have failed to truly understand the harsh realities faced by the majority of Nigerians, the daily grind of poverty, the constant battle for survival, and the crushing weight of economic hardship. However, the current multifaceted crisis, with its clear manifestation of suffering, should serve as a jarring wake-up call, even to the most arrogant and out-of-touch.
The government’s ill-conceived and draconian policies, implemented without adequate consideration for the people, have created an intolerable situation that can no longer be swept under the rug or dismissed with platitudes. The widespread suffering is a stark indictment of their negligence, demanding a fundamental shift in perspective and a renewed commitment to the welfare of the Nigerian people.
The recent #EndBadGovernance protests serve as an obvious reminder that disregarding the plight of the people is a dangerous gamble. When basic needs like food and security are unmet, and the cries for change are silenced, the simmering discontent inevitably boils over. Escalating hunger and desperation create a fertile ground for unrest, a truth tragically illustrated by the protests. If the government continues to turn a blind eye to the suffering of its citizens, more widespread and possibly violent demonstrations are not only likely, but inevitable.
Furthermore, attempting to quell dissent through intimidation and persecution of protesters is a recipe for disaster, as it only serves to further inflame tensions and breed resentment. The path to stability lies not in suppression, but in genuine engagement with the concerns of the people and a commitment to addressing the root causes of their suffering.
The Federal Ministry of Finance, led by Olawale Edun, has a crucial role to play in improving the image of this government. Minister Edun and Customs Comptroller-General, Wale Adeniyi, must prioritise the fight against hunger by expediting the zero duty policy. This policy will allow the importation of food at a reduced cost and ease the burden on struggling families.
Officials must accord precedence to the well-being of citizens over bureaucratic processes. The current economic hardship is undeniable, and the callous indifference displayed by those in power, who seem shielded from the harsh realities ordinary Nigerians face, is deeply troubling. The government must act decisively to expedite this critical policy and provide the much-needed relief to a population struggling with hunger, poverty, and misery. Continued delay is a betrayal of Tinubu’s promise and a grim reminder of the disconnect between those in power and the suffering Nigerians.
The delay in implementing President Bola Tinubu’s directive for zero customs duty and value added tax on food imports is unacceptable and highlights a concerning lack of urgency within the Federal Ministry of Finance and the Nigerian Customs Service. Over two months after the announcement, the policy remains stalled, despite the President’s clear intention for immediate enforcement. This prolonged delay, especially given the policy’s temporary nature (July – December), is inexplicable and detrimental to a hoi polloi already grappling with a severe economic crisis.
While the Comptroller-General of Customs attributes the delay to the Ministry of Finance finalising details, this explanation is insufficient. The dire need for food relief demands swift action, especially in the face of soaring fuel prices, rampant inflation, and skyrocketing food costs. The President’s promise of subsidised rice at N40,000 per 50kg bag remains elusive as well, pushing many Nigerians further into hardship. Accusations of deliberate slowdowns motivated by the government’s revenue goals are alarming and warrant serious investigation.
A circular from the Presidency has clarified the approved food items eligible for duty exemption, specifically maize, millet, rice, wheat, husked brown rice, grain sorghum, and beans. This strategic move aims to alleviate the financial burden on consumers and enhance food security. Previously subjected to import duties between five and 30 per cent, these commodities will now be more accessible, potentially stabilising prices in the local market.
It seems the execution of the policy is encountering obstacles due to bureaucratic processes. If the government fails to address this crisis with comprehensive and effective measures, the consequences could be catastrophic. The simmering discontent amongst Nigerians could easily boil over into widespread protests and social unrest, further destabilising an already fragile nation. Ignoring the cries of its citizens and the looming threat of social upheaval would be a grave mistake with potentially devastating ramifications.
Public officials insulated by privilege and detached from the everyday struggles of the people, have fostered a dangerous disconnect. For too long, they have failed to truly understand the harsh realities faced by the majority of Nigerians, the daily grind of poverty, the constant battle for survival, and the crushing weight of economic hardship. However, the current multifaceted crisis, with its clear manifestation of suffering, should serve as a jarring wake-up call, even to the most arrogant and out-of-touch.
The government’s ill-conceived and draconian policies, implemented without adequate consideration for the people, have created an intolerable situation that can no longer be swept under the rug or dismissed with platitudes. The widespread suffering is a stark indictment of their negligence, demanding a fundamental shift in perspective and a renewed commitment to the welfare of the Nigerian people.
The recent #EndBadGovernance protests serve as an obvious reminder that disregarding the plight of the people is a dangerous gamble. When basic needs like food and security are unmet, and the cries for change are silenced, the simmering discontent inevitably boils over. Escalating hunger and desperation create a fertile ground for unrest, a truth tragically illustrated by the protests. If the government continues to turn a blind eye to the suffering of its citizens, more widespread and possibly violent demonstrations are not only likely, but inevitable.
Furthermore, attempting to quell dissent through intimidation and persecution of protesters is a recipe for disaster, as it only serves to further inflame tensions and breed resentment. The path to stability lies not in suppression, but in genuine engagement with the concerns of the people and a commitment to addressing the root causes of their suffering.
The Federal Ministry of Finance, led by Olawale Edun, has a crucial role to play in improving the image of this government. Minister Edun and Customs Comptroller-General, Wale Adeniyi, must prioritise the fight against hunger by expediting the zero duty policy. This policy will allow the importation of food at a reduced cost and ease the burden on struggling families.
Officials must accord precedence to the well-being of citizens over bureaucratic processes. The current economic hardship is undeniable, and the callous indifference displayed by those in power, who seem shielded from the harsh realities ordinary Nigerians face, is deeply troubling. The government must act decisively to expedite this critical policy and provide the much-needed relief to a population struggling with hunger, poverty, and misery. Continued delay is a betrayal of Tinubu’s promise and a grim reminder of the disconnect between those in power and the suffering Nigerians.
All looks set for the conduct of the Rivers State local government election scheduled to take place tomorrow in the 23 local government areas of the state. A total of 18 political parties will vie for various council positions in the polls to be conducted on Saturday. The Rivers State Independent Electoral Commission (RSIEC) had initially listed 19 political parties for the election, but the Peoples Democratic Party (PDP) discontinued the contest. Chief Emeka Beke’s faction of the All Progressives Congress (APC) has said that it will participate in the ballot.
Ahead of tomorrow’s council election, various lawsuits have resulted in conflicting rulings about how the election should be conducted. A recent judgment by a Federal High Court in Abuja has prohibited the Independent National Electoral Commission (INEC) from providing the voters register to RSIEC and instructed the police to withdraw security for the ballot. Similarly, the court has barred RSIEC from getting the voters register from INEC. However, in a counter ruling, a High Court in Port Harcourt has mandated that the state electoral commission continues with the election, requiring INEC to hand over the voters register and ordering police protection for the event.
As voters in the state prepare to head to the polls tomorrow, the conflicting rulings and legal battles have cast a shadow of uncertainty over the election process. With INEC and RSIEC at odds over claims regarding the issuance of the voters register by the former and security arrangements for the ballot, there is a need for clarity and resolution to ensure a free and fair election. The conflicting court rulings have added further complications to an already challenging situation, raising concerns about the integrity of the electoral process. As all stakeholders navigate these legal challenges, the focus remains on upholding the democratic principles and ensuring that voters are able to cast their ballots without interference.
Intense preparations have characterised Saturday’s polls. The election is expected to be conducted in line with the provisions of the Rivers State electoral laws. Speaking at a meeting with stakeholders, the RSIEC chairman, Justice Adolphus Enebeli (Rtd), hinted that the commission had complied with relevant sections of the law in all its preparations for the task. He implored political parties and politicians to ignore acts that could jeopardise the electoral process.
While we wholeheartedly endorse the move to ensure that democratic practice, norms and values always prevail at the local government level, we are truly elated by the level of earnestness and commitment exhibited so far by the Justice Enebeli-led commission to conduct credible, free and fair election in the 23 local government councils. Indeed, RSIEC can execute credible elections if it resists pressures from different quarters.
Despite the Federal High Court order, the state electoral commission’s parley with security agencies, especially with the police, and other stakeholders is, to say the least, heart-warming and reassuring. We expect this cooperation and partnership to continue even after the election. Going by Enebeli’s antecedents, we strongly believe that the commission will not fail to provide a level playing ground for political parties and politicians to test their popularity in a free, fair and tension-free contest.
The state electoral body must, therefore, strive to adopt an open-door policy where complaints would be entertained on their merit during and after the election. As anticipated, we hope the commission embarked on massive voter education and training of electoral and ad hoc staff that would man the 23 local government areas. It is advised that adequate preparations should be made for the security of sensitive and non-sensitive electoral materials, particularly given the tensed atmosphere in the state.
RSIEC is reminded that the success or otherwise of any election depends largely on the authenticity of the updated voter’s register which the commission has reportedly obtained ahead of the election from the Independent National Electoral Commission (INEC). The news that as many as 18 political parties in the state will participate in the council polls is cheering. The parties are urged to support and cooperate with the commission in ensuring a smooth and credible election.
It is expedient that Governor Siminalayi Fubara releases all the funds appropriated for the conduct of the local government election to the commission and ensure that he does not interfere in the workings of the RSIEC, or even influence the outcome one way or the other. Members of the commission should work harder to uphold the law without fear or favour; let or hindrance.
Incidents of missing ballot or result sheets, late arrival of materials and other logistics will only serve to discourage the electorate who already entertain a deep mistrust for the electoral process in the country. The lack of confidence in the system is largely responsible for the attitude of most Nigerians refraining from playing an active role of either voting for candidates of their choice or vying for political office. RSIEC must guard against those lapses.
Politicians, on their part, must understand that irrespective of their party affiliations, the common goal is the provision of good governance for the people. An election should never be a ‘‘do or die affair’’ and no aspirant is worth spilling blood for. Political positions are a call to service, not personal enterprises motivated by profits or bloody sports for which violent and fatal competitions are means. Experience has shown that arms provided for political thugs during elections, end up being tools for robberies and kidnappings after the election.
The idea of security agents acting the script of political actors should no longer amount to something in our polity. The nation currently faces perhaps its worst security challenges, and the police as well as other security agencies need the trust of Rivers people to enable them to carry out their duties effectively throughout the polls.
Law enforcement agents must protect both voters and election materials because it is their constitutional role to do so. The recent #Endbadgovernance protest, along with the violence that ensued, is a manifestation of the dissatisfaction of Nigerians with police operations. These security agencies must learn to commit themselves to their constitutional obligation and oath in the sustenance of democracy, rather than to any government official.
We must realise that ultimate power rests with the people, and the best way to exercise this power is through the electoral process. Hence, Rivers people must own the electoral operation, first by acquiring their permanent voters’ card, turn out en masse tomorrow to vote for candidates of their choice, and guarantee that their votes count. They have to elect responsible and responsive persons whose utmost interest will be the security and welfare of the people.