FG explains plans to raise $1.5bn for Port Harcourt refinery renovation  

The Federal Government has revealed how the $1.5 billion needed for the renovation of the Port Harcourt refinery will be raised.

Speaking on Channels Television on Monday, the Minister of State for Petroleum Resources, Timipre Sylva, said that out of the $1.5 billion, $800 million will be sourced from the Federal appropriation of 2020 to 2022.

He revealed further that the Nigerian National Petroleum Corporation (NNPC) will spend about $200 million from its internally generating revenue sources.

According to him, “There are questions asked, when are we going to fix our refineries, when are we going to rehabilitate our refineries? Now, we are rehabilitating the refineries but unfortunately, it is generating all these (issues).”

He continued, “Let me tell you how this rehabilitation is going to be funded; it is not going to be all debts, we are not going to borrow all the monies that are going into the rehabilitation (project).

“Some of the money will come from NNPC’s internally generated revenue, from NPDC, some of it will come from the Federal appropriation, and just a little fraction will come from the African Export-Import Bank (Afreximbank).”

“The NNPC is going to spend about $200 million from its internally generating revenue sources, while the Federal appropriation will put in about $800 million and it is already broken down into three parts.

“The 2020 appropriation will give $350 million, 2021 appropriation will give another $350 million, and 2022 appropriation will give another $100 million, making it all $800 million from appropriation, and then the rest of it will now come from Afreximbank,” the Minister explained.