The Nigerian National Petroleum Corporation (NNPC) has said that Nigeria does not have the financial muscle now to build a new refinery.
NNPC Group Managing Director, Mele Kyari disclosed this on Monday in Abuja about the proposed rehabilitation of the Port Harcourt refinery approved by the Federal Government last week.
Speaking to journalists, Mele Kyari said a new refinery now would cost the country about $10 billion while rehabilitating the Port Harcourt Refinery will cost $1.5 billion.
“We have people saying why not build a new one; why will you repair an old refinery with $1.5 billion? The fact is available even by Google search, what it takes to build a refinery of this status today.
“It will be difficult for the country to build a new refinery as it will take four years for it to commence production.
“It is around $7 billion and $12 billion to construct a refinery of this nature (Port Harcourt refinery).
“This is the estimate you see in public space and there are things you do outside the construction battle-limits like the utilities that are never accounted for when estimates of this nature are done.
“Typically, there is an additional 25 per cent cost for construction battle-limits, so, when you say a refinery can be built at $7 billion or even 10 billion dollars, also think of that 25 per cent.