posted byUrudinachi Blessing
December 20, 2024

FG APPROVES THE CONSTRUCTION OF a NEW REFINERY IN THE NORTH AFTER DANGOTE, PH REFINERIES

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FG APPROVES THE CONSTRUCTION OF a NEW REFINERY IN THE NORTH AFTER DANGOTE, PH REFINERIES

FG APPROVES THE CONSTRUCTION OF a NEW REFINERY IN THE NORTH AFTER DANGOTE, PH REFINERIES


The Federal Government has approved the construction of a new refinery in the North, specifically in Gombe State. This refinery, which will have a capacity of 27,000 barrels per day, is being built by Process Design and Development Limited.


This development comes after the Dangote Refinery and the Port Harcourt Refinery. The Dangote Refinery, which is located in Lagos, has a capacity of 650,000 barrels per day, while the Port Harcourt Refinery, which is located in Rivers State, has a capacity of 210,000 barrels per day.


However, the controversy began when Prof. Itse Sagay, a renowned constitutional lawyer, stated that the constitution empowers the federal government to take over the Dangote Refinery and sell its products at affordable prices. Sagay argued that the government can pay compensation to the owner, Aliko Dangote, and then return the refinery to him after other local refineries have started producing.


This statement sparked a heated debate, with some people supporting Sagay's view and others opposing it. Those in support argued that the government's takeover would ensure that the refinery's products are sold at affordable prices, benefiting the masses. On the other hand, those opposed to the idea argued that it would be an infringement on Dangote's private property rights and would send a wrong signal to investors.


Some critics also pointed out that the government has not been successful in managing its own refineries, citing the examples of the Port Harcourt, Warri, and Kaduna refineries, which have been moribund for years. They argued that taking over the Dangote Refinery would not solve the problem of fuel scarcity and high prices, but rather create more complications.


The debate highlights the complexities of the Nigerian oil and gas industry, where private investors like Dangote are playing a crucial role in bridging the gap in fuel supply. While the government's intention to ensure affordable fuel prices for the masses is commendable, the means of achieving this goal remain a subject of controversy.


It's worth noting that the government has been working to increase the country's refining capacity, with the aim of reducing reliance on imported fuel. The construction of this new refinery is a step in that direction.

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