Festus Osifo, President of Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), has provided insight about the reason the Nigerian National Petroleum Company (NNPC) refineries are not operational. He emphasized that the refinery closures are actually not due to catastrophic failures, rather poor material balance.
He explained that crude oil feedstock, spare parts and other important materials are delayed or are in insufficient quantities. This lack of a balance of what the refineries demand, and what they receive, was the thing that kept the refineries from operating (even if the actual plant was still able to operate).
Osifo further pointed out that the mismanagement and corruption are chief causes compounding this challenge. Even with the refineries being rehabilitated at certain times, the lack of timely materials and weak planning has structurally bust the growth of the refineries.
He continued that PENGASSAN will assist to rehab the refineries, but there must be a major restructuring of the system. He indicated the management of refineries should consider that of a private system, and have directors, qualified people to oversee daily activities, and a rigorous system of checks and balance.
Osifo argued that out that having private-type practices would improve logistics, purchase and maintenance, efficiencies, and production of the plants. A transparent supply chain, and reliable funding supply, will be crucial to the length and sustainability, he said.
The union leader further warned that the shutdowns carry significant costs for the country. They erode public trust, create a dependency on imported fuels, and raw fuel costs increase that introduce strain to the economy. He insisted that Nigeria has had enough technical skill to operate the refineries, however; its progress depends on filling institutional and operational gaps.
Finally, Osifo expressed he would like to see the government demonstrate honest and transparent. If the refineries cannot operate, he said the citizens deserve explanation. And he urged the GOVERNMENT to hold themselves accountable for the input supply and maintenance in order to revive the plants and restore them as vital national assets.
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