The Acting Managing Director of Kaduna Refining and Petrochemical Company (KRPC), Dr. Bafred Enjugu, said the turn around maintenance, when completed, would help the refinery would operate at 90 per cent installed capacity and would generate N1 trillion yearly.
But the Group Managing Director of the Nigeria National Petroleum Corporation (NNPC), Andrew Yakubu has thrown his weight behind the planned privatisation of the nation’s refineries, saying that if private business players are brought in, as contained in the draft Petroleum Industry Bill (PIB) that is before the National assembly, the management of the facilities will more effective.
Enjugu said that the last turn around maintenance of the refinery was carried out in 2005, adding that the facility was epileptic for about 15 years.
He noted that the refinery had sustained operation in 2013 and was able to meet the market need of the North saying that the fluid catalytic cracking unit of the refinery which was down for several years has been revamped and is now operational.
Answering questions from journalists when members of the Good Governance Team inspected facilities at the Kaduna refinery, Yakubu noted that releasing a portion of government equity to private players will bring in best business practices to ensure that the refineries are run efficiently and to maximum capacity, adding that the move is very strategic and would add value.
He said: “Pronouncement was made that as part of government’s reform programme to enhance the efficiency of our assets, private sector participation is necessary. We have the required human capacity but you also need the correct and adequate environment as well as the right business model to ensure that business is perfected.
“We are all moving in the same direction, government has a lot of infrastructure that are competing for the funds that are available and if you bring in private business players as contained in the draft Petroleum Industry Bill (PIB) that is before the National assembly, value will be added and better results will unfold”.
On the sale of kerosene above approved price of N50.00 per litre, Yakubu said: “ We have been working to ensure that the supply requirements are met, we started with about eight million litres per day and later increased it to 10 million litres per day. There are so many competing needs for kerosene, as the same kerosene is used as aviation fuel, and also used for road construction.
“We call on all the distribution agencies to complement government’s efforts by ensuring that kerosene gets to the common man for which the N50.000 price is intended to serve. But we do not have control over the retail outlets, our own NNPC retail outlets that handle part of the market share will ensure that any kerosene you find in our mega stations are not sold above N50.00”.
Minister of Information, Labaran Maku, who also threw his weight behind the planned privatisation, said it is the only way to go.
The minister, who appealed to Nigerians to understand and support government’s intentions, noted that marketers after collecting subsidy from government, still sell petroleum products at an exorbitant rates.
He explained that when the privatisation programme is completed, it will bring about stability and also engender competition in the market.