Sunday, March 29, 2015

#‎OnPetroleumProductsSupplyChain

The first thing the next government must do is to remove ALL government subsidies on petroleum products!
The current glut presents us with the best opportunity to do this. Let's face it. The country is broke. Our foreign reserves are finished and we should rather be plugging more important holes.

Another step should also be to invite a consortium of experienced refinery operators from abroad to partner with a few Nigerian businessmen like Oando,Elumelu, Dangote, etc., and then dash them all the remaining waste pipes of refineries that we have.

The refineries are only operating at 16% capacity on the average, and they have an enormous and unsustainable staff burden. They should be given out for Zero Naira, under a production sharing formula that sees the government retaining 40% ownership as SILENT partners. No say on how the business is run. No operations representatives. Just stockholders! The only condition will be a hefty performance bond to be refunded once the production targets are met.To be continued.


PS: I do not care what the PIB says on this matter!

SAN

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