Former Vice President, Atiku Abubakar, has faulted the
Federal Government’s approval of $1.5 billion for the renovation of the Port
Harcourt refinery.
According to him, budgeting the amount for the renovation of
a refinery at a critical period of increased unemployment and inflation “would
appear to be an unwise use of scarce funds.”
He said this in a statement titled ‘$1.5 Billion To Renovate
The Port Harcourt Refinery Is Suspicious At The Least.’
The statement read, “That Nigeria’s economy is in dire straits is a fact well known both to the nation and to our international partners. Unemployment has just reached an all-time high of 33%, while inflation has hit another record high of 17%.
“At this critical period, we must as a nation be prudent
with the use of whatever revenue we can generate, and even if we must borrow,
we must do so with the utmost responsibility and discipline.
“To therefore budget the sum of $1.5 billion to renovate or
turn around the Port Harcourt Refinery would appear to be an unwise use of
scarce funds at this critical juncture for an assortment of reasons.
“First, our refineries have been loss-making for multiple
years, and indeed, it is questionable wisdom to throw good money after bad. At
other times, I have counselled that the best course of action would be to
privatise our refineries to be run more effectively and efficiently.
“Moreover, the cost appears prohibitive. Too prohibitive,
especially as Shell Petroleum Development Company last year sold its Martinez
Refinery in California, USA, which is of a similar size as the Port Harcourt
refinery, for $1.2 billion.
“We must bear in mind that the Shell Martinez Refinery is
more profitable than the Port Harcourt Refinery.
“Given this discrepancy, might we ask if there was a public
tender before this cost was announced? Was due diligence performed? Because we
are certainly not getting value for money. Not by a long stretch.
“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 unnecessarily overpriced projects.
“Our national debt has grown from ₦12 trillion in 2015 to
₦32.9 trillion today. Indeed 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.”
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