Minister of State for Petroleum Resources, Dr. Ibe Kachikwu, has emphasized the need for Nigeria to urgently address the issues surrounding the pricing of petroleum products, stating that unless that is done, fixing the existing refineries and encouraging private investors to build new ones would not solve the country’s downstream problems.
Speaking at the just concluded Nigeria International Petroleum Summit in Abuja, Kachikwu said: “Ultimately, the greater challenge that this country would have and still have is that of pricing. Everybody wants power, available gas and freely delivered fuel with no queues, but people are not willing to make the sacrifices that are essential for these things to happen. Sometimes, it is a pricing issue.”
“Refineries and local production are key. We expect a 12 to 18 months corridor of construction and hopefully, at that point, we would get our refineries back. However, if we get refineries back by 2019, does that solve the problem? No, it doesn’t. You still have to deal with the pricing issues, because nobody is going to build a refinery and sell products at a loss.”
In spite of these, Kachikwu disclosed that the Federal Government would be setting parameters and incentives for the building of refineries.
