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NNPC GMD Kyari Says Rehabilitation of Nigeria’s Refineries Underway

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Malam Mele Kyari

By Derrick Bangura

Group Managing Director (GMD) of the Nigerian National Petroleum Company (NNPC) Limited, Mr. Mele Kyari, on Tuesday told the House of Representatives Adhoc Committee investigating the state of refineries in Nigeria that 25 years of bad management was responsible for the poor state of the country’s refineries.

Speaker of the House, Hon. Femi Gbajabiamila, had on January 26, constituted the adhoc committee to work with NNPC, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and other relevant stakeholders to obtain the needed information for the assignment. The committee, in two separate letters, dated February 24 and March 17, 2022, requested the NNPC boss to present a status report on the state of the country’s refineries.
Addressing the lawmakers, the NNPC GMD apologised for being absent in the committee’s previous sittings, but assured that total rehabilitation of the refineries was underway.

Kyari said NNPC followed due process and the Federal Executive Council (FEC) granted approval for the overhaul of the Port Harcourt Refinery. He said a contract of $1.55 billion was awarded for the job.

With the approval, Kyari said work was presently ongoing at the Port Harcourt refinery and would also commence soon at the Kaduna and Warri refineries.

Kyari explained, “We recognise that today none of our refineries is operating for the very obvious reason that through the work of this committee, you will find out why they are not operating.

“We will hide nothing from you. We will also tell you where we are as we speak today. Needless to say that the refineries were essentially not properly managed overtime, not just today, but in the last 20 to 25 years.

“The turnaround maintenance processes were clearly mismanaged overtime. I have said this over and over. And when we took over, it was very obvious that what you are dealing with was not a turnaround maintenance. We were dealing with total rehabilitation.

“The panels were clearly in situations where ordinary maintenance will not solve the problem. We have degradation of monumental proportion that we met and, of course, the only way you can do this is to conduct a full turnaround maintenance.”

Speaking further, Kyari said, “We have a very different concept of the rehabilitation process we have started. It will be financed by banks. That is the difference between what you had in the past, where you do halfway work and never complete what you were trying to do and banks always will put conditions for lending not just about payment but ability to pay from your cash flow.

“And part of the requirements is also to include O and M component, which means that maintenance contracts will be part of this deal, otherwise they will not lend us money. It means we have to have continuous sustained operations of the refineries to establish O and M contractor.

“This is what obtains anywhere in the world and that process is also going on and we will hand over these refineries at the end of the exercise with the optimisation of our existing staff, but also a third party to run it for us. We believe that at the end of this exercise, the refineries will come to their full capacity, at the very least 90 per cent of their installed capacity.

“Of course, no refinery runs at 100 percent. That is not technically practical, but we will do minimum of 90 percent of their installed capacity.”

The GMD further assured Nigerians that there was sufficient petrol to meet their demand. He said there was a total of 2.8 billion litres of petrol available and that was sufficient to meet country’s demand in the next 48 days without importation.

Kyari blamed the current fuel scarcity in some parts of the country on hitches that occurred as a result the public holidays of Workers Day and Eid el Fitre. He explained that when such glitches occurred, there was usually a lot of panic buying which he said was causing the long queues at the petrol stations.

The NNPC boss said his team had tried to ensure people did not stay too long at the filling stations.

Kyari also said the relevant authorities were taking steps to ensure that “black marketers” did not take advantage of the situation, adding that once supply is maximised, the black marketers would disappear.

Earlier in his remarks, the chairman of the committee, Hon. Ganiyu Johnson, said the committee had a mandate to determine the amount so far spent on turnaround maintenance of the refineries.

The lawmakers resolved that NNPC should provide the survey report, commercial evaluation report, proof of waivers granted by FEC, procurement documents and other relevant documents.

Ganiyu adjourned the hearing to June 3 and mandated that the GMD should appear with all the relevant documents.

Business

Businesses count losses amid power outage in Bauchi, Gombe, and Jigawa

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Business owners in Bauchi, Gombe and Jigawa are recording losses due to week-long blackout ocassioned by vandalism of the power transmission line in parts of northern Nigeria.

The sudden disruption in electricity supply in the past days, also affected essential services such as water, sanitation, street lighting and healthcare delivery as most hospitals have been operating without light.

Some of the affected businesses including shop keepers, millers and artisans, who spoke while reacting to a survey by the News Agency of Nigeria (NAN), described the situation as “pathetic”.

The survey examined the perennial collapse of national grid and the need for alternative power supply in the country.

Rice millers in Gombe had decried the impact of the erratic power supply on their businesses.

A Miller, Musa Arab, at Nassarawo Industrial Layout in Gombe, said the trend was crippling their operations as they relied on electricity supply from the grid to process paddy.

He said the mills were not operational power outage as they could not afford exorbitant pump prices of petrol or diesel to run their machines.

This, he said, reduced the volume of rice supply to the market and posed serious challenge to food security.

“We must invest in power because it is the biggest determining factor for industries to thrive.

“I have over 20 workers in my mill, and we have 100 mini rice mills here, so you can imagine those who have no jobs for the past 10 days.

“Government must go tough on those responsible for the perennial grid collapse because some persons may be benefitting from it,” he said.

Also, Yusuf Ibrahim said the situation might trigger the already fragile inflation, as prices of local varieties would shot up ocassioned by the diminish supply.

He said that some had jerked up their charges to cover the expenses on diesel thereby affecting rice prices.

A check by NAN at the Gombe Main market showed that a 100 kilogramme of rice was sold for between N120,000 and N160,000, as against N110,000 and N150,000, before the blackout.

Mr Usman Sani, a rice dealer, attributed the hike in price to low supply of the produce to the market in spite of the number harvest recorded this cropping season.

He said the prices had decreased slightly at the onset of the harvest, however, it showed sprawling increase due to power outage.

“The price of rice is already dropping as a result of harvest but the trend reverse since the blackout in the past days “ he said.

Ugochukwu Daniel, a bartender in Bauchi, decried the epileptic power supply in the country, adding that lack of durable energy supply would retard Nigeria’s quest to attain social and economic greatness.

Daniel said that she spent much on fuel to run power generator for refrigrator and lightening the beer parlour, to enable her to keep the business running.

He said that businesses could only thrive in an enabling environment with stable electricity supply, to enhance wealth creation and reduce poverty among Nigerians.

“My trade is about chill drinks and it survives on electricity to operate otherwise you will out of bussiness.

“Without electricity there is nothing you can do, and not only business but about everything. We depend on it,” he said.

Similarly, Samuel Adamu, said the persistent power outage had forced him to patronised charcoal for ironing clothes in spite of its high cost and cumbersome processes.

He said that most cleaners in the area had resorted to fabricated iron charcoal in spite of hike in its prices which suddenly jumped from N5,000 to N15,000.

Adamu said the situation also encouraged division of labour in laundry to cut cost and make some gains.

“Presently, I do wash the cloth, and engage someone for ironing. The charge is N300 per set as against N150”.

While advocated development of renewable energies to enhance power supply in the country, Adamu urged security agencies to entensify efforts towards electrical installations in the country.

In the same vein; Mr Muhammad Adamu, Chairman, Jigawa State House Assembly Commitee on Power and Energy, said the Jigawa Electricity Law 2024, made sound provisions to improve power generation and distribution in the state.

This, he said, was an offshoot of the devaluation brought about by the 5th alteration of the constitution, where removed power from the executive legislative list and to the concurrent list.

“It empowered the state houses of assembly to enact laws on power.

“The committee has also carefully pursued the bill and reviewed its structure and the promise it holds for the state power sector, infrastructure and the overall economy of the state.

“The new law will pave way for the establishment of Jigawa Electricity Commission, to regulate the state’s electricity market,” he said.

According to Adamu, the law will protect residents and investors in the energy sector through ensuring prepaid meter installation and possibility of recouping investor’s funds as well as address vandalism.

“The law will lead to provision of reliable, affordable and sustainable power, essential for development of all sectors of the economy, particularly in rural areas,” Adamu said.

“Vandalism will be over because we pay Kano Electricity Distribution Company (KEDCO) money for powered supplies, but whenever there is problem of damages or broken down transformers, it is either the communities or individuals that pay for the repairs”.

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Mercedes urges delay of EU tariffs on Chinese electric vehicles

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Mercedes urges delay of EU tariffs on Chinese electric vehicles

The head of German luxury carmaker Mercedes-Benz, has called for the European Union to de-escalate the dispute with China over tariffs on electric cars.

“We need more free trade instead of new trade barriers.

“That is why it is important to find a solution that suits both the EU and China,” chief executive Ola Källenius told the Monday edition of Bild newspaper.

“The negotiations for this take time. In order not to jeopardise them, the EU should postpone the enforcement of the planned tariffs,’’ he said.

At the start of the month, a majority of EU countries paved the way for additional tariffs of up to 35.3 per cent on battery-powered electric vehicles imported from China.

Germany, however, voted against the measure amid concerns over retaliatory actions which could hurt the country’s giant car industry.

The European Commission had pressed for extra tariffs after an investigation accused Beijing of subsidising domestic electric car manufacturers, and thus distorting the market in the EU.

But whether the import tariffs would actually come into force at the beginning of November is still up to the commission.

The plans can still be dismissed if Brussels reaches a solution with China at the negotiating table.

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ACCI moves to promote business connections, balance work-life

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ACCI moves to promote business connections, balance work-life

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.

The Abuja Chamber of Commerce and Industry (ACCI), is taking innovative steps to enhance professional relationships and promote a healthy work-life balance.

The President of ACCI, Dr Emeka Obegolu, said this in a statement on Tuesday in Abuja.

Obegolu said ACCI was committed to creating environments where professionals could connect beyond the confines of traditional boardrooms.

He said the upcoming “Business Meets Golf’’ Tournament epitomises this vision.

“Scheduled for Oct. 18 to Oct 19 at the IBB Golf Club, the tournament will gather industry leaders, top executives, and key decision-makers for a unique networking experience.

“This two-day event aims not only to strengthen business ties but also to foster partnerships that can drive economic growth.

“The ACCI’s initiative reistates the importance of maintaining a balance between professional achievement and personal well-being.

“By encouraging corporate cultures that prioritise relaxation and self-care, the Chamber acknowledges that such balance is vital for productivity and overall success,” he said.

According to Obegolu, the event will feature a range of activities designed to facilitate both business engagement and relaxation.

“Highlights include a Business-to-Business (B2B) cocktail on the first day, followed by the golf tournament and additional networking opportunities on the second day.

“The tournament will culminate in an awards ceremony recognising outstanding golfers among the participants.

“‘Business Meets Golf’ exemplifies our dedication to fostering innovative networking opportunities.

“We aim to create spaces for meaningful discussions that can lead to impactful collaborations,” Obegolu said.

The ACCI boss said in addition to promoting business connectivity, the council aimed to restate the importance of relaxation and a balanced lifestyle.

Obegolu said through events like this, the Chamber continued to play a pivotal role in supporting trade and industry in Nigeria while driving sustainable growth within the private sector.

He said to raise awareness about this landmark event, ACCI was partnering with the News Agency of Nigeria (NAN) and Media Trust Limited, to ensure broad visibility and engagement from leading brands.

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