(Ecofin Agency) - The Nigerian Stock Exchange (NSE) on Friday, urged the Federal Government to put the country’s four refineries and the Ajaokuta Steel complex up for sale, so as to improve their performances.

According to the NSE’s Chief Executive Officer, Oscar Onyema (photo), the sale of these assets became necessary in order to stop them from exhausting the country’s resources. He said the Nigerian National Petroleum Corporation (NNPC), who operates the refineries, has not been successful in renovating the idle refineries over the years, adding that by splitting them, the government can reduce the excess money being spent and allow the funds to be used on other projects.

“The Federal Government’s 10-point roadmap was a step in the right direction, but has not gone far enough to revive their sustainability. We believe that other institutions like the Ajaokuta Steel complex were constituting drain pipes on the nation’s scarce resources,” he said.

Nigeria’s four refineries have been on comatose over the past years but only three resumed operation early last year. An analysis of the performances of the refineries in August last year showed that the exact combined capacity usage of the three refineries was 19.9% compared to the 6.74% recorded in July 2016, while the combined revenue losses of the three facilities fell from the 5.13% in July to 3.23% in August.

However, NNPC in December 2016 announced plans to begin a comprehensive rehabilitation of the refineries, in order to achieve a peak capacity usage in 2017. It said the Corporation is determined to change the initial approach of quick fixes and take on a comprehensive renovation of the plants.

Anita Fatunji