Condemns failure to resuscitate refineries
Nigerian Institute of Production Management (NIPM) has said that the incessant increases in the price of refined petroleum products, though unjustified was as a result of lack of visionary, committed and pro- active leadership as well as poor management of production processes across the petroleum value chain in the Country.
According to NIPM President, Dr. Olaniyi Opanuga, ” the inability of the Nigerian National Petroleum Corporation (NNPC) to put our local refineries on track as effective production organisations will continue to make the Nation vulnerable to the forces of demand and supply in the global oil market since we are largely dependent on importation of refined petroleum products “.
Lamenting the gross inefficiency that pervades the petroleum value chain from the upstream to the down stream, Dr. Opanuga said efforts should be geared towards revamping the three refineries in Warri, Port Harcourt and Kaduna and getting the Niger Delta Petroleum Resources (NDPR) and the licenced modular refineries to function properly while awaiting the coming on stream of Dangote Oil Refinery.
Said he, ” a situation where about 90% of refined petroleum products consumed in Nigeria is imported is a demonstration of lack of leadership vision, commitment and competence.”
“The call on the government by some Organised Private Sector (OPS) organisations and individuals to introduce economic palliatives is a popular consolatory rhetoric that begs the question. Which one has successfully cushioned the devastating effects of COVID-19 pandemic or all the preceeding price hikes in the energy sector?.There are foundational problems to be solved. Fixing the local refineries and ensuring that they are smoothly running with professional Production and Operations Management in place will provide lasting solution, not some “palliatives” that have never worked” Opanuga remarked.
According to him,”another petrol price hike will soon occur to further spike aggregate inflation rate in the Country if the Federal Government fails to address the fundamental issues- ensure that our local refineries are producing at optimum levels.”
” Production operations have virtually gone comatose with capacity utilisation of Nigerian refineries put at less than 3%. We have virtually resigned to fate on exporting crude oil and failing to add value by meeting local demand and exporting refined products and other petroleum derivatives to earn additional foreign exchange.”
Opanuga reiterated further that,”professional production management competencies are required across the Petroleum Value Chain, from exploration (especially drilling operations) to refining and chemical plants with all the associated logistics. The operations of the Petroleum Products Marketing Company (PPMC) need to be improved. Gas flaring must be abated in view of the economic and environmental impacts.”
” It is not enough to rationalise things and think that the impact of the recent price increase of PMS to #153.17 ex- depot according to NNPC and the possible retail price of between #168 and #170 which the Petroleum Products Marketers have fixed will be reversible or cushioned by any means. This latest increase coupled with the recent increases in electricity tariff will set impelling chain reactions across the economy leaving price increases in other product and service markets, increased poverty, further erosion of standards of living and sufferings of the masses in its trail,”Opanuga asserted.
