Nigeria’s move to privatise its refineries in Port Harcourt, Warri and Kaduna will hit a brickwall because Section 6 of the Petroleum Act empowers the Minister of Petroleum Resources to fix prices for petroleum products in the country.
Special Adviser to the Minister of State for Petroleum Resources, Policy and Regulation, Mr.Tim Okon, said the development would make investors not to find the refineries attractive for business.
He spoke in Lagos yesterday in a paper : “Oil Price fluctuations in a Developing Economy and the Recipe for Economic Growth” at the 36th Annual International Conference and Exhibition of the Nigerian Association of Petroleum Explorationists (NAPE).”
He lamented that a situation whereby a private investor strives to raise funds to rehabilitate the refineries and get it working and government on the other hand fixes petroleum products prices is not a workable model.
He added that banks that have provided funds for these investors would want a situation where they would have control over repayment schedule and terms and inflow, saying this would also include pricing for the product.