By Hosea Parah, Abuja
Engr. Alex Ogedegbe, a former Managing Director of the Port Harcourt and Kaduna Refineries, has written a letter in response to a recent podcast on TV360, addressing the reasons behind the current recession in the Nigerian economy and proposing potential solutions.
In the letter, Engr. Ogedegbe agrees with the need for structural changes and capital investment in productive projects, emphasizing that his proposal does not involve asset disposal by the Federal Government of Nigeria (FGN) for monetary revenue purposes.
Regarding the suggestion of concessioning the NNPC refineries, Engr. Ogedegbe expresses his opinion that retaining FGN ownership or majority shareholding while allowing a different company to operate the refineries on its behalf, for a fee, would be ill-advised. He cites a comprehensive and detailed forensic study of the refineries conducted by the FGN in 2012 to support his viewpoint.
Engr. Ogedegbe outlines several potential benefits that could be attained if the FGN successfully divests a super majority (75%) controlling share of its current 100% ownership and control of the NNPC refineries to competent and resourceful investors in the private sector. These benefits include the elimination of heavy costs for running underperforming refineries, the generation of dividends for the FGN instead of losses, forex savings from reduced importation, strengthening of the Naira exchange rate, increased availability of petroleum products through market-driven solutions, prompt expansion and improvements driven by supply and demand, and achieving national self-sufficiency in product supply.
Engr. Ogedegbe highlights the need for a transparent and internationally competitive tendering exercise to facilitate the sale of equity shareholding, referring to the successful example of the sale of NNPC’s Eleme Petrochemical Company to INDORAMA in 2005.
He concludes the letter by stating that it has been sent in good faith, without any demands or expectations of compensation or reward. Engr. Ogedegbe emphasizes his willingness to discuss or debate the issues raised, particularly the positions taken on the subject, in any suitably organized meeting or public forum.
Engr. Alex Ogedegbe’s proposal has sparked interest and discussions within the industry, with stakeholders considering the potential benefits and implications of such a divestment. The government and relevant authorities are yet to respond to the proposal, but the letter has certainly added a new perspective to the ongoing discourse on reviving the Nigerian economy.