
Refinery: A cautioning tale for ambitious revival
If Nigeria’s refineries were a private project, a fresh profitability analysis would certainly be required before an additional naira is released for the rehabilitation. That will require a detailed analysis of the expected cash flow and funding options. But the analysis would not stop at that.
The refineries have a rich history of contentious capital expenditures that would interest any individual who wishes to make a sound final investment decision (FID). Such a decision cannot be made without an extensive profile of their previous investment outlays and the entrenched culture of net losses, which have run into billions of naira.
According to available records, about $25 billion has been spent on the turn-around maintenance (TAM) of the refineries so far. Successive administra...