The country does not currently have the funds to build a new refinery considering the economic situation of the country. That’s the view of the Nigerian National Petroleum Corporation.

Speaking to newsmen on the proposed rehabilitation of the Port Harcourt refinery, Group Managing Director Mele Kyari said building a new refinery now would cost about 10 billion dollars. To him, this is far beyond the 1.5 billion dollars earmarked for the rehabilitation of Port Harcourt refinery.

He also said the country would have to live with importing petroleum products, especially Premium Motor Spirit, for another four years if the country ventures into building a new refinery.

“A new refinery will take four years to commence production. It is around $7billion and $12billion dollars to construct a refinery of this nature,” he said.

Kyari stated that estimates in public space are inaccurate and do not take other factors into account.

The NNPC chief mentioned “an additional 25 per cent cost for construction battle-limits” to the 7-12 billion dollars.

“You cannot build a refinery at any cost below these amounts. The option you have is to scrap and build a new one; we all know that we don’t have that resource,” he stated.

Kyari added that the last turnaround maintenance of the Port Harcourt refinery was done two decades ago.

He linked the current high cost of rehabilitation to poor maintenance of the plant over the years.

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