Why Privatisation Of Four Refineries By Ex-President Obasanjo Failed- PETROAN
1 year ago 3 min read
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The President of Petroleum Products Retail Outlets Owners Association Nigeria, Dr. Billy Gillis-Harris has said that former President Olusegun Obasanjo failed in his attempt to privatize four state-owned refineries because of his poor handling of the process.
The PETROAN boss said he opposed the privatization process when he was the President of the Port Harcourt Chamber of Commerce because the former president sidelined stakeholders.
The oil mogul said this on Monday while addressing issues around the oil and gas industry on Arise TV.
The PETROAN president said the Nigerian National Petroleum Company Limited has relaunched the Port Harcourt Refining Company (PHRC) and Warri Refining and Petrochemical Company despite setbacks.
Billy-Harris said, “I was president of the Port Harcourt Chamber of Commerce when the earlier privatisation by President Olusegun Obasanjo was attempted and we as a chamber rose up and let him know that we have businesses operating in Rivers State and we should have a stake and a say in how that business works.
“Of course, as usual, the government wakes up with policies and they want to run with it without digging deep and driving through the process of how those policies can be effectively implemented and of course, the privatization process did not work.”
Last week, former President Olusegun Obasanjo said in a viral interview on Channels TV that the company blocked Aliko Dangote’s $750m offer to run Nigeria’s four refineries.
The former president also claimed that the refineries gulped over $2bn and were not working.
Obasanjo said, “When I was president, I wanted to do something about the three refineries we have. Port Harcourt, Warri and Kaduna, and Aliko Dangote brought a team. After I asked Shell to run it for us and Shell said they couldn’t, I said please come and take equity and run, they said no. Alright, don’t take equity come and run it.
“It was after that that Aliko got a team together and they paid $750m to take out in PPP on running the refinery, my successor (Umaru Musa Yar’Adua) refunded their money and I went to my successor and I said do you know what transpired and he said NNPC said they wanted the refinery and they can run it… I was told since that time, more than $2bn have been squandered on the refinery and they still could not work.”
The PETROAN president said the NNPC Limited has restreamed two of the refineries despite setbacks.
He said, “Today to the glory of God, Engr. Mele Kyari-led team has delivered on their work with so much ups and down.”
Recall that in a statement released on Sunday, PETROAN called for a N100bn grant to save the businesses of about 10,000 oil marketers.
Explaining the need for the grant, the PETROAN president said the grant will enable steady supply of products to Nigerians at a more affordable price.
He further proposed the establishment of Energy Bank of Nigeria to facilitate oil and gas business.
He said, “The N100bn intervention fund is requested because it will help us to cushion the cost of money in our business and that will go a long way to make petroleum products available and affordable to Nigerians.
“It is going to help us a lot as opposed to the cost of money today ranging between 36 to 40 per cent. So, that is the reason why we want to ask for this money and we hope that the federal government will take it seriously.
“Yes, it is possible that we can have N100bn funding into the Energy Bank of Nigeria. They have to give out to the association. They just need to set up a bank as fast as possible and make that a seed capital for us to be able to access. Just like the Bank of Industry and Bank of Agriculture.”
