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N4.8tr Spent to Import Petrol Last Year—Kachikwu

By Modupe Gbadeyanka

Minister of State for Petroleum Resources, Mr Ibe Kachikwu, has revealed that about N4.8 trillion was used last year to bring petrol into the country.

At a news briefing in Abuja yesterday, Mr Kachikwu said for the Federal Government to reduce this high cost for fuel imports, the three refineries in the country must be repaired to produce at 100 percent capacity.

“The importation of petroleum products between January and December of last year amounted to about 20 million metric tonnes.

“A total amount of N3.4 trillion was spent, the consumption of FX from CBN was approximately 30percent of CBN total forex outlay, and the logistic costs of that importation was about N1.34 trillion within the same one-year period,” the Minister said.

According to him, about $1.2 billion would be required to repair the three refineries belonging to the Nigerian National Petroleum Corporation (NNPC), which are located in Port Harcourt, Warri, and Kaduna.

At the briefing, the Minister said it was totally false that government had concessioned the Port Harcourt refinery to Oando and Agip.

However, he confirmed that plans were on the way to leave out to private organisations to carry our repairs on the facilities.

According to him, the technical committee set up by the government to review and selection process of concessioners was yet to submit its report.

“We have not selected any firm yet even though some firms have shown interests,” he told journalists at the event.

Mr Kachikwu said further that, “We need about $1.2 billion to repair and bring the three refineries of the Nigerian National Petroleum Corporation (NNPC) in Port Harcourt, Warri, and Kaduna, up to 100 percent production level.”

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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