TheCable

Pat Utomi, a professor of political economy, says the approval of $1.5 billion for rehabilitation of the Port Harcourt refinery is a “superfluous investment”.

Utomi faulted the approval when he featured on Politics Today, a Channels Television programme, on Monday.

Last Wednesday, the federal executive council (FEC) meeting approved $1.5 billion for the rehabilitation of the Port Harcourt refinery.

The approval has since elicited critical reactions from various quarters, particularly from notable Nigerians like Atedo Peterside, Peter Obi, and Atiku Abubakar.

Commenting on the approval, Timipre Sylva, minister of state for petroleum, said the federal government wants to ensure that the Port Harcourt refinery is functional before considering whether to sell or privatise it.

However, Utomi noted that he “doesn’t understand the logic” in the decision to rehabilitate the Port Harcourt refinery before selling it, adding that he viewed the use of $1.5 billion for rehabilitation as building another refinery.

“I don’t understand the logic. If you want a refinery built, because you are building a new refinery. You can’t be refurbishing it.

“Let me tell you a logical way of refurbishing this. It is now a new thing, it is done all over the world when a facility is not competitive and it is not running well.

“A couple of years ago, the British found out that their motor industry is in such a pilot stage. Rolls Royce could not possibly make profit. G-wagon could not. BMW bought the thing for one pound.”

The professor noted that the federal government should have sold the refinery and the person who purchases it will repair it.

He further added that spending $1.5 billion on rehabilitation of the refinery at this critical time “doesn’t make sense”, noting that the money should be invested in job opportunities.

“I think if the federal government sells the Port Harcourt refinery for N1 to somebody who promises to spend whatever it is. N1.5million, N200millionz whatever to get it running. I have no complaint,” he said.

“Not that you spend $1.5 billion in a country that is in so desperate poverty. That every damn we could find can be invested in productive areas that can create jobs and expand opportunities for the young ones of this country.

“What is the value of petrol? Where is it going? We know that the world is moving away from fossil fuels.

“Such an investment after you made it, so you can sell it will turn out to be a superfluous investment. A complete waste of money because 20 years from now petrol is not what will be running your cars.”