Facts emerged last week that the Federal Government spends about N12 billion annually to keep the Kaduna Refining and Petrochemical Company (KRPC) running, in spite of producing at less than 35 per cent capacity.
Facts emerged last week that the Federal Government spends about N12 billion annually to keep the Kaduna Refining and Petrochemical Company (KRPC) running, in spite of producing at less than 35 per cent capacity.
Chairman of the Senate Committee on Petroleum (Downstream), Senator Magnus Abe, who disclosed this when he led other committee members on an oversight visit to the refinery, deplored the condition of the plant and promised to engage the Minister of Petroleum Resources, Mrs. Dieziani Alison-Madueke, and the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mr. Austine Oniwon, to look for immediate remedy.
"We are not happy with the state of this refinery, it is shocking that a refinery that was built less than 30 years ago that has the projected production capacity of 110,000 barrels per day is currently running at less than 35 per cent capacity," Abe said.
He lamenting that: "One of the production plants that was made to produce asphalts has been converted to a drum making plant, producing containers for oil companies for a price that could simply be described as unfortunate and sad development; and we are doing this at a time when we are spending N12 billion per annum to keep the place running and sustain the staff."
He stated further: "One is even unhappy when you look at the total amount of investment that has gone into this refinery over the years and then, look at the total possibility of what this refinery could produce for this country if it is made to function optimally."
"I think if you take the figure 110, 000 barrel and make an estimate of this plant running at even 90 percent capacity, I think on a conservative estimate, we could be making more than N719billion annually and for a place that can generate up to this as turnover, no matter how much you spend, at least the country would be left with over N200billion as profits from this operation, but instead of generating a turnover, we are here with various stories."
Abe said the only way the country could stand on its own is "to stand on its strength and Nigeria's strength is oil and we therefore need to make use of it in a very resourceful manner", stressing that "unless we get the required benefit from oil, it will be difficult to convince our people that we are making good use of our resources".
He explained that all the attention of the Nigerian people at this time was on the petroleum sector particularly the downstream sector, pointing out that "the Kaduna Refinery represents one of the most critical investments Nigeria has, but sincerely, what is the value we get from this investment and if we are not getting the expected and required value, why are we not getting it and what are the guarantees that the people of this country will get the values they clearly expect".
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