{"id":27860,"date":"2018-11-01T13:02:16","date_gmt":"2018-11-01T12:02:16","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=27860"},"modified":"2018-11-01T13:02:16","modified_gmt":"2018-11-01T12:02:16","slug":"probing-the-failure-of-fgs-greenfield-crude-oil-refineries-in-nigeria","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/probing-the-failure-of-fgs-greenfield-crude-oil-refineries-in-nigeria\/","title":{"rendered":"Probing The Failure Of FG\u2019s Greenfield Crude Oil Refineries In Nigeria"},"content":{"rendered":"

In the light of NNPC\u2019s proposal to construct two 100,000 bpd greenfield refineries in Delta and Imo States, BudgIT, a civic technology organization at the forefront of raising the standards of transparency, citizen engagement and accountability, has asked the Federal Government to first do a root cause analysis on the abandonment of Nigeria\u2019s greenfield refineries earlier announced for Kogi, Bayelsa, and Lagos States for which feasibility studies had already been fully paid for and completed.<\/p>\n

According to Gabriel Okeowo, BudgIT’s Principal Lead, \u201cIt is wrong for any government institution to tease citizens with announcements for greenfield crude oil refineries, award \u00a0, abandon the project when it\u2019s time for construction, then repeat the cycle in another state. What guarantees do citizens have that taxpayers\u2019 money earmarked for the refineries in Imo and Delta state will not suffer the same fate as those spent on Kogi and Bayelsa States? What are the lessons learnt from Kogi, Bayelsa, and Lagos greenfield projects? Can these lessons be made public?\u201d<\/p>\n

NNPC exports a large portion of the 445,000bpd of crude oil allocated to domestic refineries through Crude Oil Lifting contracts (COL) largely due to (1.)\u00a0 NNPC\u2019s inability to make existing refineries work \u2013 despite monies spent on turn around maintenance, and (2.) the failure of NNPC\u2019s new, greenfield refineries to see light of the day \u2013 despite monies spent on them.<\/p>\n

Okeowo said in the past, NNPC has been accused of carrying out its export of unused Domestic Crude Allocation (DCA) through politically-connected middlemen \u2013 many of whom do not have adequate capacity to handle the volume of crude oil in their Crude Oil Lifting contracts but simply extract rent and pass the contract on to those who do. The Minister of State for Petroleum Resources, Dr Ibe Kachikwu had previously promised to cut out the rent-seeking middle men in the award of Crude Oil Lifting contracts and also to cut down the number of contractors to sixteen (16) when he was the GMD for NNPC.<\/p>\n

According to him, \u201cAt the inception of this administration, the government made some effort to cut out middlemen in the award of Crude Oil Lifting (COL) contracts. We observed a drop in the number of COL contractors from about 43 in 2014 to 27 in 2015[1]<\/sup><\/a> and then to 21 in 2016[2]<\/sup><\/a>. However, their numbers grew to 39 in 2017[3]<\/sup><\/a> and to 50 in 2018. Citizens need to pay close attention especially as a part of the Diezani scandal was rooted in the activities of some briefcase companies who got Crude Oil Lifting (COL) contracts.\u201d<\/p>\n

To this end BudgIT calls on citizens, civil societies, journalists, and media influencers to #AskQuestions about Nigeria\u2019s greenfield refineries every step of the way. BudgIT also calls on NNPC to do a weekly or monthly briefing to citizens specifically on progress and challenges of its greenfield projects as failure of greenfield refineries to see the light of day opens up many complex loopholes for corruption in the long term.<\/p>

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The civic technology organization said it will not fail to commend NNPC for publishing its monthly Financial and Operations Report online since the inception of this administration. Such monthly reporting is worthy of emulation by other government agencies in the sector. However, we\u2019d like to call on NNPC\u2019s management to reduce the time lag involved in making these reports available. As at October 30th, its report for the last four months (June \u2013 September) are not yet available online.<\/p>\n

BudgIT calls on all political parties not to weaponize data concerning the oil and gas industry in the run up to May 2019 elections, but use data as a tool for dialogue to seek long lasting reforms. Many problems in the oil and gas sector are complex in nature and have defied solutions across multiple governments. To be blind to this reality is to walk unprotected into a clouded minefield set up by vested interests that have defied multiple administrations. Let\u2019s focus on the real issues. #StayWoke and #AskQuestions.<\/p>\n

BudgIT is a civic organization that applies technology to intersect citizen engagement with institutional improvement, to facilitate societal change. A pioneer in the field of social advocacy melded with technology, BudgIT uses an array of tech tools to simplify the budget and matters of public spending for citizens, with the primary aim of raising the standard of transparency and accountability in government.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

In the light of NNPC\u2019s proposal to construct two 100,000 bpd greenfield refineries in Delta and Imo States, BudgIT, a civic technology organization at the forefront of raising the standards of transparency, citizen engagement and accountability, has asked the Federal Government to first do a root cause analysis on the abandonment of Nigeria\u2019s greenfield refineries …<\/p>\n","protected":false},"author":6,"featured_media":27862,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,1593,17,624],"tags":[1355],"coauthors":[2391],"class_list":["post-27860","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-business","category-metro","category-news","category-politics","tag-oil"],"yoast_head":"\nProbing The Failure Of FG\u2019s Greenfield Crude Oil Refineries In Nigeria - 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