Connect with us

NEWS

Experts urge refineries’ sale as government seeks N342.72b for repair

Published

on

Experts have condemned the Federal Government’s move to source another $1.12 billion (N342.72 billion) to repair the nation’s refineries.Their opposition to the plan is premised on the speculation that the government may have spent up to N963 billion in the last 18 years for the repairs of the refineries without achieving the desired result.

Stakeholders who spoke with The Guardian advised the Federal Government to hand over the management of the refineries to private investors through a transparent privatisation programme.

The Nigerian National Petroleum Corporation (NNPC) has four refineries, two in Port Harcourt Refinery Company Limited (PHRC) and one each in Kaduna Refinery and Petrochemical Company Limited (KRPC) and Warri Refinery and Petrochemical Company Limited (WRPC). The facilities have a combined installed capacity of 445,000 bpd.The Minister of State for Petroleum Resources, Ibe Kachikwu, had said the refineries would require $1.12 billion (N342.72 billion) for a comprehensive turnaround.

Huge funds have been expended on seasonal Turn-Around Maintenance (TAM) without much result due ostensibly to the obsolete state of the facilities. Former NNPC Group Managing Director, Funsho Kupolokun, reportedly testified before the House of Representatives in 2007 that $1billion (N306 billion) was spent between 1999 and 2007 to repair the refineries.In 2013, former Minister of Petroleum, Diezani Alison-Madueke, said $1.6 billion (N489 billion) was budgeted for the TAM of the refineries, adding that over 75 per cent of the spare parts maintenance in the Port Harcourt Refinery had arrived in the country. She added that original builders of the refinery had been paid $35 million for the TAM.

Alison-Madueke put the total amount to be expended on the Port Harcourt refinery at $147 million while the modernisation of the facility would cost the government $406 million.In 2015, the Group Executive Director, Refining and Petrochemicals of the NNPC, Ian Udoh, said the corporation opted to use local engineers at the cost of $550 million (N168 billion), spread across 18 months.

No provision was made under the 2017 budget for the reconstruction of the four refineries.Despite spending these huge resources, data from NNPC show that the combined average refining capacity utilisation of the refineries in 2013 remained at a low level of 22 per cent as against 21 per cent in 2012.

In 2014, the combined average refining capacity utilisation fell to14.4 per cent from 22 per cent in the previous year. In 2015, the combined refining capacity utilisation dropped further to 4.9 per cent against 14.4 per cent in the previous year.For the month of June 2017, the three refineries produced 222,585 metric tonnes (mt) of finished petroleum products out of 231,836MT of crude processed at a combined capacity utilisation of 12.73 per cent compared to 23.09 per cent combined capacity utilisation achieved in May.

Despite the low performance of the refineries, NNPC has already inaugurated a committee with the mandate to bring them to about 90 per cent capacity with a budget of $1.12 billion.Kachikwu had told journalists at the beginning of this administration that even if the current refineries were working on a 100 per cent basis, they would only be able to account for 20 million litres of petrol a day, which is about 50 per cent of the country’s consumption.

On the need to privatise the refineries, Pioneer Director, Centre for Gas, Refining and Petrochemicals, Institute of Petroleum Studies, University of Port Harcourt, Godwin Igwe, in an interview with The Guardian, described the decision as highly preposterous as past results of TAM suggest a careless use of such a huge capital investment.

Igwe, therefore, called for the privatisation of the refineries to protect the country from the wastage of funds.He stated: “One of the most difficult problems facing developing countries is their inability to service and maintain the few equipment bought from developed countries with their scarce foreign exchange reserves.

“Anytime there is a major breakdown, experts from technologically developed countries are flown across the oceans at great expense to the host country. Care is another word for preventive maintenance, and good care is essential to extend the useful life of anything at all, including equipment.

“Nigeria has a name plate refining capacity of 445,000 bpd and produced only 95,300 bpd of products in 2012, and has for years been heavily dependent on imports from outside, specifically Europe.“As far as can be ascertained, nothing has significantly changed since the report of the National Refineries Special Task Force of August 1, 2012 chaired by Dr. Kalu Idika Kalu.”

According to Igwe, the report concluded that “the most pivotal of the root causes is that the current ownership structure and business model have failed to adequately provide for the safe and efficient performance of the refineries. They further concluded that the three Nigerian refineries have not been efficiently and safely operated and maintained for more than 15 years. During the same period, they have not been able to refine the designed quantities of petroleum products. They have not operated as performance-oriented businesses and are plagued with severe plant maintenance and integrity issues, as well as irregular crude supply and products evacuation. Furthermore, they are beleaguered by poor governance in a non-commercial operating structure, which is considered unsustainable. So, the best decision is for the government to privatise the refineries.”

Also, Associate Director, PricewaterhouseCoopers (PwC) Nigeria, Olumide Adeosun, said the Federal Government ought to have sold the refineries long ago to private investors.“Very few countries run refineries because government does not run business. These refineries are running at low capacity utilisation and therefore should be sold to investors. If government still feels like having ownership of the assets, it should concession them. Government does not have any business or national justification for holding on to them,” he added.

Adeosun stated further that “Refineries all over the world normally have TAM cycle. It usually happens every year and this costs a lot of money. I don’t think we have actually done any serious TAM in the last few years.

“I even doubt if the budgeted amount will be enough to carry out a thorough TAM on the refineries. There is a big refinery that went down and cost between $2 billion to $4 billion to carry out TAM.”

Justifying the need to carry out more TAM on the refineries, NNPC’s Group Managing Director, Dr. Maikanti Baru, said: “We want to show everyone that we can fully run the refineries. You must all work together to operate them at 100 per cent capacity as this is the only way to ensure profitability.”

The Chief Operating Officer, Refineries and Petrochemicals, Anibor Kragha, disclosed that over 28 expressions of interest had been received so far for the financing of the rehabilitation project and that the goal was to get more by the end of the year. Assuring that the nation would not suffer financially from the project, Kragha explained that the approved financial model would guarantee payment to partners only from incremental profits.

Explaining how the TAM would be financed, the Group General Manager, Corporate Planning & Strategy, NNPC, Umar Ajiya said: “What we have proposed and secured presidential mandate to do is to get funds from technical partners to retrofit the refineries.

“The technical partners are just financiers, not equity holders. While the refineries are being repaired in the next two or three years, the same technical partners will be bringing in products equivalent to the capacity of the refineries; it’s more or less like your refineries are still running. They are giving you money. They are bringing in products and at the end of the deal when the refineries begin to work, you can begin to pay back their loan.”

– GuardianNgr

MUSIC

Wizkid’s “Dance” Reappears On Apple Music Nigeria Top 100

Published

on

Kese (Dance) Reappears on Apple Music Nigeria Top 100 | fab.ng

Wizkid’s ‘Kese (Dance)’ Reclaims Top Spot on Apple Music Nigeria

Wizkid’s latest single, ‘Kese (Dance)‘ dramatically returned to the Apple Music Nigeria Top 100 chart. The song temporarily disappeared on November 18, 2024, sparking widespread speculation among fans and music enthusiasts.

Fab.ng first reported the unexpected chart removal. Despite vanishing from the Nigerian chart, ‘Dance’ maintained its position on global Top 100 lists. Remarkably, it remained the sole Nigerian and African track on international charts.

Apple Music’s chart management protocols suggest potential reasons for the temporary removal. The platform commonly investigates potential streaming manipulation. When suspicious activity emerges, they remove and then reinstate tracks after verifying stream authenticity.

Fans and industry watchers developed multiple theories. Some believed the removal resulted from technical complications. Others suspected a deeper investigation into streaming patterns. The exact mechanism remained unclear.

Within hours, ‘Kese (Dance)’ returned to its top chart position. The song demonstrated sufficient streaming strength to reclaim its previous standing. Wizkid’s continued musical dominance remained unquestionable.

The incident generated additional excitement around Wizkid’s upcoming album ‘Morayo.’ Scheduled for release on November 22, 2024, the album generates significant anticipation. Wizkid strategically shared the official tracklist, further fueling fan enthusiasm.

Music industry observers noted the incident’s potential marketing impact. The temporary chart removal inadvertently increased visibility for both the single and the upcoming album. Wizkid’s strategic music release continues to capture the audience’s attention.

The event underscores the complex dynamics of digital music platforms. Streaming charts represent more than simple popularity metrics. They reflect intricate algorithmic and investigative processes.

Wizkid continues to demonstrate his significant influence in Nigerian and global music scenes. ‘Kese (Dance)’ represents another milestone in his remarkable musical journey.

Fans remain eager to experience the full ‘Morayo’ album, anticipating another potential chart-topping release from the superstar artist.

Check out more updates here.

Continue Reading

MUSIC

Davido’s “Na Money” Wins Best Costume/Styling At Berlin Fashion Film Festival

Published

on

Na Money wins best costume at Berlin fashion film festival | fab.ng

Davido’s “Na Money” music video, featuring Angélique Kidjo and The Cavemen, has earned the prestigious Best Costume/Styling (Craft) award at the 12th Berlin Fashion Film Festival.

The vibrant video is directed by Dammy Twitch and produced by Blessing Uzzi. The video captivated audiences with its colourful costumes, cultural depth, and breathtaking visuals. This celebrates African heritage with impeccable creativity and style.

The win underscores the team’s exceptional attention to detail in showcasing the beauty of African fashion and culture. From the elaborate traditional attire to the contemporary designs, the video seamlessly blends visual artistry with the powerful Afrobeat sound of the track.

This recognition cements “Na Money” as a benchmark for combining music and fashion in innovative storytelling.

The Berlin Fashion Film Festival celebrates fashion and film annually.

It has recognized outstanding talent since its establishment. The festival is part of the larger Berlinale, a global cinema event dating back to 1951.

It focuses on creativity and craftsmanship in filmmaking. The festival highlights emerging talent across various artistic disciplines. It awards prestigious honours like the Golden Bears.

The event attracts filmmakers, designers, and film enthusiasts from around the world. The festival provides a platform for innovative storytelling through visual media.

Recognizing creative excellence supports artistic development. The award represents a significant achievement for artists and creators. For Davido and his team, this recognition underscores their contribution to global cultural representation.

The festival continues to be an important stage for showcasing innovative artistic expressions.

The video’s dynamic visuals and cultural richness not only earned industry accolades but also resonated with fans worldwide.

To experience the award-winning brilliance firsthand, watch Davido’s “Na Money,” featuring Angélique Kidjo and The Cavemen, now.

Let the stunning visuals and captivating storytelling take you on a journey through Africa’s vibrant cultural tapestry.

Explore the full list of winners on the festival’s official site and join in celebrating this milestone for African music and fashion.

Watch the video below.

Check out more updates here.

Continue Reading

MOVIES

“The Interrogation Of Lotanna” Bags 6 Nominations At The FilmJoint Awards 2025

Published

on

The Interrogation of Lotanna: 6 nominations at TFA 2025 | fab.ng

Reginald Jumbo’s compelling short film “The Interrogation of Lotanna” has earned prestigious recognition with six nominations at the upcoming 2025 Film Joint Awards.

The nominations span major categories. They include Best Picture, Best Director, Best Actor in a Leading Role, Best Indigenous Film (Nigeria), Best African Film, and the Best Jury Award for Outstanding Storytelling.

The FilmJoint platform stands as a vital global initiative that connects short filmmakers with international audiences. They provide them with a stage to showcase their creative works.

Through its annual awards ceremony, FilmJoint celebrates exceptional short films that advance African cinema’s artistic and cultural landscape.

Producers Ibukun Serah Adetoyinbo and Oreoluwa Obadofin bring to life a gripping narrative set against the backdrop of civil unrest.

The plot follows Captain Ardo, a military commander tasked with suppressing an eastern rebellion led by the elusive Zuru Nkwu.

After months of fruitless searches, intelligence leads Ardo to interrogate a suspect named Lotanna. Despite enduring severe torture, Lotanna steadfastly maintains his innocence throughout the ordeal.

The film showcases powerful performances from an ensemble cast. The cast features William Chinoyenem, Cassey Oritsejolomi, Anthony Nwahiri, Francis Sule, Michael Embraiz, and Mr. Rala.

Each actor brings depth and authenticity to their respective roles, contributing to the film’s emotional impact and storytelling prowess.

These nominations underscore the film’s artistic merit and its significant contribution to African cinema. The recognition from the FilmJoint Awards particularly highlights the film’s excellence in storytelling, direction, and performance.

Meanwhile, it also acknowledges its cultural significance as both a Nigerian and African production. The winners will be revealed at the 2025 FilmJoint Awards ceremony, where “The Interrogation of Lotanna” stands as a strong contender across multiple categories.

Check out more updates here.

Continue Reading

Latest

Wizkid Releases His Highly Anticipated Album, "Morayo" | fab.ng Wizkid Releases His Highly Anticipated Album, "Morayo" | fab.ng
FAB FRESH3 mins ago

Wizkid Releases His Highly Anticipated Album, “Morayo”

After months of anticipation, Wizkid has finally dropped his highly awaited eighth project and sixth studio album, Morayo. He named...

Lee Min-Ho back to the screen in When The Stars Gossip | fab.ng Lee Min-Ho back to the screen in When The Stars Gossip | fab.ng
FOREIGN18 hours ago

Lee Min-Ho Returns To The Big Screens In Netflix’s “When The Stars Gossip”

Lee Min-ho is set to make a triumphant return to the big screens with Netflix’s upcoming South Korean series When...

Kese (Dance) Reappears on Apple Music Nigeria Top 100 | fab.ng Kese (Dance) Reappears on Apple Music Nigeria Top 100 | fab.ng
MUSIC20 hours ago

Wizkid’s “Dance” Reappears On Apple Music Nigeria Top 100

Wizkid’s ‘Kese (Dance)’ Reclaims Top Spot on Apple Music Nigeria Wizkid’s latest single, ‘Kese (Dance)‘ dramatically returned to the Apple...

2025 Coachella: Rema and Seun Kuti to perform | fab.ng 2025 Coachella: Rema and Seun Kuti to perform | fab.ng
MUSIC21 hours ago

Rema And Seun Kuti To Perform At 2025 Coachella

The 2025 Coachella Music Festival has revealed its spectacular lineup. Over 100 artists will perform at the iconic three-day event....

Denzel Washington On 15-Year Battle with Alcohol | fab.ng Denzel Washington On 15-Year Battle with Alcohol | fab.ng
ENTERTAINMENT22 hours ago

Denzel Washington Opens Up About 15-Year Battle With Alcohol

Hollywood icon Denzel Washington recently disclosed his past struggles with alcohol during an interview with Esquire. The two-time Academy Award...

Na Money wins best costume at Berlin fashion film festival | fab.ng Na Money wins best costume at Berlin fashion film festival | fab.ng
MUSIC23 hours ago

Davido’s “Na Money” Wins Best Costume/Styling At Berlin Fashion Film Festival

Davido’s “Na Money” music video, featuring Angélique Kidjo and The Cavemen, has earned the prestigious Best Costume/Styling (Craft) award at...

Gladiator II records ₦99.1 million in its opening weekend | fab.ng Gladiator II records ₦99.1 million in its opening weekend | fab.ng
INTERNATIONAL1 day ago

“Gladiator II” Records ₦99.1 Million In Its Opening Weekend At The Nigerian Box Office

Ridley Scott’s Gladiator II has taken the Nigerian box office by storm, earning an impressive ₦99.1 million during its opening...

Skepta Graced Africa International Film Festival (AFRIFF) | fab.ng Skepta Graced Africa International Film Festival (AFRIFF) | fab.ng
FASHION1 day ago

Skepta Graced Africa International Film Festival (AFRIFF) In Elegant Trad

Skepta made a grand entrance at Africa’s biggest film celebration, the Africa International Film Festival (AFRIFF). Through his attire, he...

Christmas In Lagos: Watch the trailer | fab.ng Christmas In Lagos: Watch the trailer | fab.ng
MOVIES1 day ago

Watch The Trailer For Jade Osiberu’s “Christmas In Lagos”

Christmas is about to get a thrilling twist with the release of the trailer for Jade Osiberu’s highly anticipated film,...

AFCON: Benin & Sudan Qualify | fab.ng AFCON: Benin & Sudan Qualify | fab.ng
SPORTS3 days ago

Benin & Sudan Qualify For AFCON As Ghana, Nigeria & Tunisia Exit

Benin and Sudan Secure AFCON Finals Qualification Amid Upsets Benin and Sudan clinched spots in the 2025 Africa Cup of...

-Ad-

under40ceos-starting-a-business
under40ceos-starting-a-business

Trending