Three out of Nigeria’s four oil refineries have resumed activity and are operating at between 60% and 80% of their capability.
The announcement was made by state-owned Nigerian Nationwide Petroleum Company (NNPC) stating that the refineries – two in Port Harcourt, capital of Rivers State and one in Warri, Delta State – started working again after undergoing a rehabilitation program. The fourth refinery, in Kaduna, Kaduna State, is expected to resume activity soon.
The 4 refineries, largely underused due to maintenance issues, have a mixed capability of 445,000 barrels per day (bpd).
Population: 174,507,53 (2013 census)
Largest cities: Lagos, Kano, Abuja
Major ethnic teams: 21% Yoruba, 21% Hausa,
Languages: English, Hausa, Igbo, Yoruba
Religion: 50% Muslim, forty% Christian, 10% other
Foreign money: Naira (N) 1N = £0.0033; US$0.0050
The NNPC announcement came shortly after newly elected President Muhammadu Buhari, who took office in May, was urged to privatise the oil refineries and end a fuel subsidy programme.
A senior member of the All Progressives Congress (APC), of which Buhari is member, mentioned the refineries should be privatised so that the state wouldn’t spend cash on yearly maintenance programmes.
Nigeria’s lack of refineries signifies that the country – which is Africa’s largest oil pruducer – has to export about 90% of its crude oil and import back petroleum products at international prices.
The government then sells fuel to Nigerians at subsidised costs and reimburses the difference to importers.
Former President Goodluck Jonathan minimize subsidies by ninety% after oil costs slumped, arguing that the end of the programme may save the government $8bn (£5.2bn, .3bn) a year, that may very well be invested into public companies.
In 2012, the government attempted to end subsidies by doubling the value of a litre of petrol overnight, triggering violent protests. Residents argued that low prices are the one benefit they’ve by living in the oil-rich nation. The federal government backtracked on its determination following rallies that prompted at least sixteen deaths.
Former senator Kabir Marafa additionally known as for an end of subsidies arguing that it would remedy the problem of lack of petroleum merchandise in the nation. In response to Marafa, oil destined for Nigeria is bought in different African nations at increased costs.
“This factor referred to as fuel subsidy, I don’t consider there’s one, I do not imagine it is benefiting the plenty and it does not help them in any method as far as I’m involved,” he was quoted as saying by PM Information Nigeria.
“So lengthy as fuel is promoting at a lower worth than another neighbouring nations, you will continue to have gasoline going by means of the borders out. If you deregulate the market, you enable whoever wants to bring petroleum merchandise into the country to go ahead and convey it, you regulate only, gas won’t promote as a lot as it’s promoting now.”
Nigeria’s oil and gas industries are additionally marred by widespread corruption. Earlier in July, Buhari reportedly banned 113 vessels from lifting crude oil “until additional notice” in an anti-corruption transfer. In accordance with some stories, the vessels had been involved in”illicit lifting of Nigeria’s crude”.
In 2013, the head of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi, was suspended after he claimed that $20bn of oil income “went lacking” from NNPC.
In a letter to former president Jonathan, Sanusi stated: “I am constrained to formally write your excellency, documenting severe issues of the CBN on the continued failure of the NNPC to repatriate significant proportions of the proceeds of crude oil shipments it made in gross violation of the law.”
The allegations triggered an investigation into NNPC books. In line with the audit, launched in April, NNPC overpaid the state by almost $750m, however still needed to pay an extra $1.5bn.