{"id":60794,"date":"2018-01-26T21:45:36","date_gmt":"2018-01-26T20:45:36","guid":{"rendered":"http:\/\/pointblanknews.com\/pbn\/?p=60794"},"modified":"2018-01-26T21:45:36","modified_gmt":"2018-01-26T20:45:36","slug":"ensuring-adequate-fuel-supply-beforedangote-refinery-berths","status":"publish","type":"post","link":"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/ensuring-adequate-fuel-supply-beforedangote-refinery-berths\/","title":{"rendered":"Ensuring Adequate Fuel Supply BeforeDangote Refinery Berths"},"content":{"rendered":"
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The persistentfuel crisis Nigeria has been made to undergo reflects the<\/div>\n
curse which oil hasbecome to an oil rich country; in fact, the sixth<\/div>\n
largest oil producer in theworld. That curse shows glaringly in the<\/div>\n
paradox that such an endowed countryalmost wholly depends on imported<\/div>\n
finished fuel products for driving its energyneeds. Yes, the country has<\/div>\n
drunk full from the blessings from oil. Oil hasyielded bountifully since<\/div>\n
it was discovered in commercial quantity. Oil hasyielded rich harvest to a<\/div>\n
country that is equally blessed with other resources.But from all indices,<\/div>\n
oil has rather led to a harvest of tears and regrets as itsdiscovery marks<\/div>\n
the abandonment of other resources in preference to theeffortless mining<\/div>\n
of oil and the huge payoff that comes from crude. How best toshow this<\/div>\n
than that before the advent of oil, Nigeria was running veryefficiently as<\/div>\n
an agricultural nation where cash crop was the source of anefficient<\/div>\n
system that benefitted the people and added greatly to the<\/div>\n
countrysinfrastructural base, but has been abandoned in the craze for oil<\/div>\n
wealth?<\/div>\n
<\/div>\n
<\/div>\n
<\/div>\n
When oilcame, Nigerians changed focus, abandoned agriculture and other<\/div>\n
income sourcesand all attention was diverted to oil, with its rich harvest<\/div>\n
of petro dollars.Curiously, as oil gained traction and indeed, transformed<\/div>\n
into the nationssole revenue earner, corruption blossomed, development<\/div>\n
stymied and the masspoverty increased. With oil as the countrys sole<\/div>\n
revenue source, the directiveprinciples of state policy assumed a deadly<\/div>\n
tenor as the struggle to corner oilresources came to define governance,<\/div>\n
politics and relationship between thecombustible ethnic units that make up<\/div>\n
the country. With oil, deep fissures anddivisions emerged not only between<\/div>\n
the various people that make up the countrybut between the classes as<\/div>\n
closeness to oil came to define the strata of thesociety.<\/div>\n
<\/div>\n
<\/div>\n
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Oil seemedto have funded only the huge corruption complex that came with<\/div>\n
it. With thegovernment fixated on sharing oil revenue, other sources of<\/div>\n
revenue were allowedto go extinct and a social system that calibrated the<\/div>\n
citizens along the oilchain emerged. Attachment to this chain became a<\/div>\n
defining charter in ournational scale as oil gained importance in the<\/div>\n
international commodity market.The stupendous rise in the price of oil<\/div>\n
added to the problem as Nigeriansstruggled to get attachment to its high<\/div>\n
yielding chain. But these nevertransformed to the wellbeing of the people.<\/div>\n
What more, there was no noticeableimprovement in the oil process. There<\/div>\n
was no noticeable indigenous input in thesector. The exploration and<\/div>\n
mining were wholly outsourced and left in the handsof expatriate companies<\/div>\n
and the modest state investment in refining either forlocal use or even<\/div>\n
exportation was not improved upon. What rather emerged is acache of<\/div>\n
indigenous petrol importers and marketers who exploited thehelplessness of<\/div>\n
the Nigerian people to grow exceedingly rich merely by fiddlingwith<\/div>\n
imported petroleum products. Curiously, they made no attempt to ploughback<\/div>\n
the illicit wealth they got from this mindless exploit to the<\/div>\n
developmentof the sector.<\/div>\n
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<\/div>\n
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The abovescenario has been grown and allowed to blossom for many years now<\/div>\n
to not onlymake Nigeria wholly dependent on imported fuel but susceptible<\/div>\n
to the tempestuousnessand vagaries that follow the international oil<\/div>\n
market. The crux of the matteris that refineries built by past military<\/div>\n
regimes have been allowed to rot awayby successive governments before the<\/div>\n
advent of the present regime who haverecovered some chunk of their<\/div>\n
operational capacity to ease what would have beena very messy situation.<\/div>\n
At a fully operational refining capacity of 450,000daily, the existing<\/div>\n
refineries fall hugely short of the petroleum needs ofNigeria at present.<\/div>\n
Yes, they were built for the needs of the country at thetime they were<\/div>\n
built but there was that inherent supposition that successivegovernments<\/div>\n
would be adding to them as the needs of the country blossom withexpanding<\/div>\n
population. But nothing of that sort was done for decades now.Rather, as<\/div>\n
the corruption complex around the oil industry quadrupled in leaps<\/div>\n
andbounds, these refineries served as conduits for multi-billion Naira<\/div>\n
looting inthe guise of unending turn-around maintenance contracts that<\/div>\n
never improvedtheir lots.<\/div>\n
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As therefineries were used for massive stealing, they rotted away till<\/div>\n
they became inoperablescraps from which the present government has battled<\/div>\n
to recover someappreciable degree to support the local fuel demands.<\/div>\n
Because successivegovernments found it so attractive to depend wholly on<\/div>\n
imported finishedproducts, no efforts were made to either rehabilitate the<\/div>\n
existing refinery or addnew refineries. What more, fuel importation became<\/div>\n
a huge cash cow and aflowering corruption font for enriching sundry<\/div>\n
interests by successivegovernments. This paradoxical state where Nigeria,<\/div>\n
as the sixth largest oilproducer on earth, became the largest net fuel<\/div>\n
importer gradually grew and withit, a gargantuan corruption that soon over<\/div>\n
swept the entire country and becamethe main business in town.<\/div>\n
<\/div>\n
<\/div>\n
<\/div>\n
Because thefluctuations in the international crude market was bound to<\/div>\n
affect this dependentregime, it was impossible for fuel importers to<\/div>\n
consistently fiddle with fuelprices as crude prices fluctuate as this was<\/div>\n
bound to unleash chains ofunpalatable social crisis, the government will<\/div>\n
have to subsidize imported fuelprices for there to be a stability in<\/div>\n
prices. This was what led to thenotorious subsidy scheme, which itself<\/div>\n
became another huge cesspool of fleecingthe country and expanding the<\/div>\n
frontiers of corruption. Subsidy, as a policy,would have been a non-issue<\/div>\n
if Nigeria has optimal refining capacity to ensureadequate supply of<\/div>\n
refined petroleum products for its expanding populace. Theexisting<\/div>\n
refineries were designed for a population of between 50 and 60million, at<\/div>\n
optimal operation capacity. With our population at over 180 million,there<\/div>\n
is no doubt that the existing refineries, even if they were operating<\/div>\n
atfull capacity, would merely meet the needs of a little fraction of<\/div>\n
ourpopulation. So there was need for regular maintenance of the<\/div>\n
existingrefineries to keep them at optimal level while building new<\/div>\n
refineries forNigeria to meet her local fuel needs but these imperatives<\/div>\n
were all abandonedand Nigeria made to depend on imported fuel. So subsidy<\/div>\n
would not have happenedif Nigeria had full refining capacity and crude<\/div>\n
supplied to these refineries attolerable local price.<\/div>\n
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<\/div>\n
So, theNigerian oil industry was converted to a huge corruption complex<\/div>\n
and theordinary Nigerians were structured as the ultimate brunt bearers<\/div>\n
and financiersof this massive corruption. Over the years, the corruption<\/div>\n
has been deepened.Since President Buhari came to power, there has been<\/div>\n
decisive actions tounhinge this deeply rooted corruption and this led to<\/div>\n
the expunging of thehugely corrupt subsidy regime that was so manipulated<\/div>\n
to corruptly enrich manyinterests that are attached to those in power. But<\/div>\n
then, without local refiningcapacity, it would be difficult to control the<\/div>\n
price of fuel without somehow,subsidizing the price of imported fuel in<\/div>\n
the midst of global fluctuation inoil prices. That is why we are having<\/div>\n
the supply glitches we have been havingsince December and the government<\/div>\n
should be bold to address it.<\/div>\n
<\/div>\n
<\/div>\n
<\/div>\n
Methinksthat a highly controlled and transparent subsidy regime, not the<\/div>\n
scrambledcorrupt subsidy scheme that existed before Buhari came, would be<\/div>\n
in order. Thepresent government should weigh in with a transparent subsidy<\/div>\n
regime that takescare of the rise in petroleum products to ensure that the<\/div>\n
present price regimeis not tampered with. There is nothing wrong with a<\/div>\n
transparent subsidy process.Why Nigerians were against the subsidy regime<\/div>\n
before now was because of thewidespread abuses and total lack of<\/div>\n
transparency that attended it. It got to apoint the immediate past<\/div>\n
government paid a whopping N2.1 trillion as doubtfulsubsidy to oil<\/div>\n
marketers without corresponding supply of imported fuel. Withthe vastly<\/div>\n
improved transparent culture this government conducts its policies,I<\/div>\n
believe it can enthrone a transparent and open process of<\/div>\n
subsidizingimported refined products so as to ensure that Nigerians are<\/div>\n
not subjected tothe whims and selfish caprices of hawkish petroleum<\/div>\n
importers.<\/div>\n
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<\/div>\n
All said,the tremendous promises of the Dangote refinery, which promises<\/div>\n
to startoperation next year, should gladden the hearts of Nigerians that<\/div>\n
somehow, a Nigerianhas come to the rescue from many years of official<\/div>\n
ineptitude and corruption.The Dangote refinery is expected to end this<\/div>\n
cyclical embarrassment of totaldependence on petroleum products and the<\/div>\n
businessman needs commending for thisgiant intervention. Is it not curious<\/div>\n
that the many other people that made hugegains from the corrupt twists in<\/div>\n
the petroleum industry never deemed it properto invest the loot they got<\/div>\n
from the oil sector into developing the sector asDangote is doing? He<\/div>\n
deserves our kudos but before his refinery comes on steam,the government<\/div>\n
must develop a supply template to keep the product available toNigerians<\/div>\n
while not increasing the price to reflect international crudepricing. The<\/div>\n
only option is a transparent subsidy regime that will take care ofthe<\/div>\n
difference between the present landing cost of imported fuel and<\/div>\n
theexisting controlled price of petrol. There is no way out of the crisis<\/div>\n
thanthis.<\/div>\n
<\/div>\n
<\/div>\n
<\/div>\n
Peter ClaverOparah<\/div>\n
<\/div>\n
<\/div>\n
<\/div>\n
Ikeja,Lagos.<\/div>\n
<\/div>\n
E-mail:peterclaver2000@yahoo.com<\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n
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    The persistentfuel crisis Nigeria has been made to undergo reflects the curse which oil hasbecome to an oil rich country; in fact, the sixth largest oil producer in theworld. That…<\/p>\n","protected":false},"author":1,"featured_media":49191,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7],"tags":[],"class_list":["post-60794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles-opinions"],"yoast_head":"\nEnsuring Adequate Fuel Supply BeforeDangote Refinery Berths - Pointblank News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/pointblanknews.com\/pbn\/articles-opinions\/ensuring-adequate-fuel-supply-beforedangote-refinery-berths\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ensuring Adequate Fuel Supply BeforeDangote Refinery Berths - Pointblank News\" \/>\n<meta property=\"og:description\" content=\"The persistentfuel crisis Nigeria has been made to undergo reflects the curse which oil hasbecome to an oil rich country; in fact, the sixth largest oil producer in theworld. 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