•What Nigeria needs is a comprehensive plan for efficient running of the industry

At last, the long proposed rehabilitation of the Port Harcourt Refinery has been flagged off. Speaking at an inspection of the two refineries, with a combined installed capacity of 210,000 barrels per stream day, Dr. Mikanti Baru, managing director of the Nigerian National Petroleum Corporation (NNPC), said the refinery would, at the end of the exercise, be capable of achieving 90 per cent capacity.

However, he pointed out that the rehabilitation process would take place in two phases: the integrity test of the complex; and the instrumentation test of every equipment. He pledged both exercises would be concluded in six months.

We support this move by the government, coming just before the inauguration of a renewed tenure. We take Dr Baru’s word that all four national refineries would be revamped, to ensure that much of our domestic consumption comes from the refineries. That should slash subsidy cost on imported oil products; and conserve foreign exchange.

We recall that the executive and legislative arms of government were literally at war last year, over the level of subsidy paid to sustain a stable price mechanism for the premium motor spirit (PMS), popularly called petrol. Under the Jonathan administration in 2012, the subsidy regime provoked a national street protest. We have continued to call for a realistic solution to the subsidy regime that has continued to fuel claims of fraud. Last year, the NNPC claimed that daily petrol consumption stood at 53 million litres per day, while a claim of 30 million litres importation sparked the 2012 protest.

It is unfortunate that policy somersaults have been the bane of the industry. At one point, the Minister of State for Petroleum, Dr. Ibe Kachikwu, said the refineries were worth nothing and would be sold off. On another occasion, the same minister said they would be revamped; and have their capacities boosted with location of privatized modular refineries, within the complexes. The government that toyed with total privatization is now settling for continuation of the existing model. What exactly is happening?

The government should be consistent, to engender confidence in the business community as well as in the general public. It should also be open. Nigerians deserve to know the full plans for the sector. Aside the first phase of rehabilitating the two refineries in Port Harcourt in six months, we ask: how long would the second phase last? What are the plans for the Warri and Kaduna Refining and Petrochemical Companies?

The government has said the original builders of the Port Harcourt refineries, JGC of Japan, are being brought on board to gain time and facilitate its upgrade with cutting edge technology. ENI, a joint venture partner of the Federal Government, is also reportedly equally committed to the project.

Still, Nigerians deserve to be informed of the cost outlay. As Dr. Baru pointed out, ostensible turn-around maintenance (TAM) of the refineries was undertaken in 2000 with little to show for it. This time, Nigerians want value for the public fund being committed.

But much more than periodic bouts of maintenance, a comprehensive roadmap for the sector should be published. The combined capacity of the four refineries is put at 445,000 barrels per stream day. If huge fund is to be invested, the end must be obvious, discipline should be visible and Nigerian experts should be engaged alongside the foreign engineers.

In 2017, the Buhari administration set up four committees to come up with detailed work plans. The report should be reviewed and scrupulously followed. We expect the Ministry of Petroleum to come up with timelines for this project. Other African oil producing countries, Angola, Algeria, Egypt and even war-torn Libya have, over the years, managed their oil resources better.

Nigeria should get better organized. This is one legacy President Muhammad Buhari owes this country.