The Federal Government through the Nigerian National Petroleum Corporation (NNPC) has said that Nigeria doesn’t have the financial capability to build new refineries.
The declaration was made by NNPC Group Managing Mele Kyari, NNPC, citing the economic situation of the country.
The GMD was speaking to journalists as regards the backlash that emanated by the proposed rehabilitation of the Port Harcourt refinery.
Acccording to him, a new refinery would cost about $10billion, noting that the proposed renovation would gulp $1.5billion.
“A new refinery will take four years to commence production. It is around $7billion and $12billion dollars to construct a refinery of this nature,” he said.
Kyari stated that estimates in public space are not accurate.
Kyari said “an additional 25 per cent cost for construction battle-limits” to the 7-12 billion dollars.
“You cannot build a refinery at any cost below these amounts. The option you have is to scrap and build a new one; we all know that we don’t have that resource,” he stated.
Acccording to him, turnaround maintenance of the Port Harcourt refinery was done two decades ago.