H.E. Chief Timipre Sylva, Honourable Minister of State for Petroleum

How government earmarks $1.4bn for rehabilitation of Warri, Kaduna refineries ─Minister

*Nigeria’s Federal Executive Council also approves $2.76billion acquisition of 20 percent minority stake by the NNPC in Dangote Petroleum and Petrochemical Refinery, says Timipre Sylva, Minister of State for Petroleum

Alexander Davis | ConsumerConnect

Designed for execution in three phases, the Nigeria’s Federal Executive Council (FEC) has approved contracts for the rehabilitation of Warri and Kaduna refineries at a cost of $1.4 billion.

ConsumerConnect reports H.E. Chief Timipre Sylva, Honourable Minister of State for Petroleum, who disclosed this to State House correspondents Wednesday, August 4, 2021, in Abuja, FCT, following the FEC weekly meeting chaired by Vice-President (Prof.) Yemi Osinbajo.

The Minister stated the breakdown of the lump sum indicated that $897 million is approved for the Warri Refinery while the Council earmarked $586 million for the Kaduna Refinery.

Nigerian oil refinery

The FEC also approved the $2.76 billion acquisition of 20 percent minority stake by the NNPC in Dangote Petroleum and Petrochemical Refinery.

In regard to the fixing the oil refineries in Nigeria, the country has four refineries, including the two in Port Harcourt, but all have struggled to function optimally as the West African economy continues to import petroleum products till date.

However, the renewed effort at rehabilitating the oil refining facilities is expected to turn them around and put the refineries in functional, optimal shape to meet the national oil demands.

Recall that Malam Mele Kyari, Group Managing Director (GMD) of the Nigerian National Petroleum Corporation (NNPC) June 2021, said the rehabilitation of the refineries, in conjunction with private efforts, such as the Dangote Refinery, would transform Nigeria into a “hub of petroleum products and supply”.

Malam Kyari had stated: “It’s going to change the dynamics of petroleum supply globally in the sense that the flow is coming from Europe today and it is going to be reversed to some other direction.

“We will be the supplier for West Africa legitimately and also many other parts of the world.”

The success of the rehabilitation efforts is expected to have a positive impact on the retail price of petroleum products for Nigerian consumers.

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