Former Vice President, Atiku Abubakar, has berated the Federal Government for planning to rehabilitate the Port Harcourt Refinery with $1.5bn.
He said it was a wasteful venture, noting that Shell recently sold off a refinery of that class for $1.2bn.
Minister of State for Petroleum, Timpire Sylva, announced the move on Wednesday, saying the contract had been awarded to an Italian firm.
But Atiku insisted in a statement on Thursday that it was unwise.
He said:
“At this critical period, we must as a nation be prudent with the use of whatever revenue we can generate, and even if we must borrow, we must do so with the utmost responsibility and discipline.
“To therefore budget the sum of $1.5 billion to renovate or turn around the Port Harcourt Refinery would appear to be an unwise use of scarce funds at this critical juncture for an assortment of reasons.
“First, our refineries have been loss-making for multiple years, and indeed, it is questionable wisdom to throw good money after bad. At other times, I have counselled that the best course of action would be to privatise our refineries to be run more effectively and efficiently.
“Moreover, the cost appears prohibitive. Too prohibitive, especially as Shell Petroleum Development Company last year sold its Martinez Refinery in California, USA, which is of a similar size as the Port Harcourt refinery, for $1.2 billion.”
