African Democratic Congress (ADC) vice-presidential candidate, Rotimi Amaechi, has stated that he cannot promise Nigerians that the country's government-owned refineries will be revived if his party takes power in 2027. Speaking on his plans for Nigeria's energy sector, Amaechi cautioned against making commitments before assessing the actual state of the facilities and the cost required to restore them. He made this statement while discussing his vision for the country's energy sector.
Amaechi, a former Rivers State governor, noted that politicians often make promises before getting into office, only to discover that the reality of governance is more complicated. He advised against making promises that may not be fulfilled, citing the experience of those who were overwhelmed by the challenges of governance. According to him, it is essential to assess the condition of the facilities before making any commitment on their revival.
Nigeria's state-owned refineries have remained a major issue in the country's oil sector despite several rehabilitation efforts. The refineries have been underperforming for years, leading to concerns over the country's reliance on imported petroleum products. Amaechi's comment comes amid these concerns, with many Nigerians calling for a solution to the refineries' poor performance.
Instead of promising to revive the state-owned refineries, Amaechi outlined an alternative approach to improving fuel availability. He suggested supporting private and modular refinery operators through crude oil pricing. An administration led by ADC presidential candidate Atiku Abubakar would consider selling crude oil to domestic refiners below international market prices, with the difference serving as government support.
Using Dangote Refinery as an example, Amaechi explained that if crude oil was priced at N15,000 internationally, the government could sell it to local refiners at N10,000, with the N5,000 difference serving as a form of subsidy. This approach, he argued, would reduce the cost of petroleum products and eventually lower the prices of transportation, food, and other essential goods.
Amaechi also argued that the removal of fuel subsidy had contributed to rising production and transportation costs, affecting the daily lives of Nigerians. He stated that the increase in costs affects not only the cost of transportation but also the prices of goods such as bread. An ADC administration, he said, would prioritize agriculture, production, and industrialization to create jobs and tackle insecurity.
The ADC vice-presidential candidate listed security, education, and the economy as key areas requiring urgent attention if Nigeria is to make progress. He also suggested that the Petroleum Industry Act could be amended where necessary to support the proposed policy on crude oil pricing for domestic refiners. The proposed policy aims to support the growth of the country's refining capacity and reduce the cost of petroleum products.
Key points
- Amaechi cannot promise revival of Nigeria's government-owned refineries if ADC wins 2027 election
- ADC administration to consider selling crude oil to domestic refiners below international market prices
- Proposed policy aims to reduce cost of petroleum products and lower prices of transportation, food, and other essential goods
