'Nigeria will continue to import PMS, beyond 2016'

yinka ogunlami

December 28, 2015 7:51 AM

“Until we begin to get individuals who can co-relocate, we are going to be doing a mixture of local and importation of fuel to meet up demands."

Minister of State, Petroleum Resources and Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Ibe Kachikwu.

Ibe Kachikwu, Minister of State for Petroleum, on Sunday, December 27, 2015 said that Nigeria will continue to import Premium Motor Spirit popularly known as petrol in 2016 and beyond even with the nations refineries working.

Quoting the Minister, "the future is that, Nigeria is still going to import fuel in 2016 and beyond.

“Until we begin to get individuals who can co-relocate, we are going to be doing a mixture of local and importation of fuel to meet up demands.

Furthermore, speaking on the rate of importation, Kachikwu remarked that: “Best case situation is a twenty five to forty percent of local production and the rest being imported, worst case situation is what we have seen in the last few months of hundred percent importation."

Read: 'FG has suspended paying subsidy on petrol'

The minister also suggested ways by which refineries can generate more profit. In his words, “A typical refinery will look at the lubes, petrochemical area, power areas and see how they can probably expand the value chain and the potentials. That’s certainly what we are looking at."

“We are looking for investors who have the capacity, speed and the time to be able to accomplish that. But until we do that, ‎we are going to be doing a mixture.”

He further expressed optimism that the queues in the filling station will end in the next two weeks. “Some of these factors are not in anybody’s control, one of the thing I want people to understand is that NNPC is not setup to be a hundred percent importer for the country.

Read: NNPC to reduce PMS to N85 per litre in January 2016

“We are a last intervention force, that is what we are and this business should be run by marketers who make money out of it‎, bringing their products, selling their stations. It is not the business the NNPC to provide them hundred percent capacity but because there was over one year delay in payment of subsidy. ”

Ibe Kachikwu also disclosed that the Kaduna, Port Harcourt and Warri refineries will produce at full capacity in the first quarter of 2016.

According to him, the Kaduna refinery is already producing about 1.5 million litres a day, while Port Harcourt will commence production of about two million litres per day by next week and the refinery in Warri is expected to start early next year.

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