Minister of state for petroleum resources, Dr Ibe Kachikwu, has said about $1.2 billion is needed to repair the three refineries of the Nigerian National Petroleum Corporation (NNPC).
Speaking at a news briefing in Abuja on Thursday, Kachikwu said reports of the concession of Port Harcourt refinery to Oando and Agip companies were untrue.
He said a technical committee set up by the government to undertake the review and selection process is yet to submit its report.
The minister said the committee is coming up with a holistic investment figure enough to fix the nation’s three refineries.
“We have not selected any firm yet even though some firms have shown interests,” he said.
“We need about $1.2 billion to repair and bring the three refineries of the Nigerian National Petroleum Corporation (NNPC) in Port Harcourt, Warri, and Kaduna, up to 100 percent production level.”
Kachikwu added that the cost of the project had been determined in terms of the extent of work required.
“The total cumulative amount is in the 1.1 billion dollars and 1.2 billion dollars category between all the refineries. And that, of course, does not include the pipelines.
“You have got to address the pipelines and that is something else that is being done.”
He explained that Nigeria spent about N4.74 trillion on the importation of petrol in the past year which was 30 percent of the total foreign exchange outlay of the Central Bank of Nigeria (CBN).
“The importation of petroleum products between January and December of last year amounted to about 20 million metric tonnes.
“A total amount of N3.4 trillion was spent, the consumption of FX from CBN was approximately 30 percent of CBN total FX outlay, and the logistic costs of that importation was about N1.34 trillion within the same one-year period.”
On domestic refining capacity, Kachikwu said the nation produced six million litres out of a total consumption of about 35 million litres per day.