Wale Adegbite, a former Chairman, Manufacturers Association of Nigeria, Ogun Chapter, has advised the Federal Government to repair the nation’s refineries to save huge expenses incurred on subsidy.
Adegbite gave the advice in an interview with the News Agency of Nigeria in Ota, Ogun on Wednesday.
The three refineries located in Port-Harcourt, Warri and Kaduna has been producing below optimal capacity, which resulted in importation of petroleum products into the country.
He said that there was the need to urgently repair the refineries in the country because the subsidy paid in bringing in petroleum products into the country was on the higher side.
He said: “The Federal Government has been funding the subsidy through borrowing and selling of Treasury Bills. This development has made the interest rates to be higher and this is not good for the economy.”
He said that the outlook of the country in 2019 would depend on developments from the international community.
“This is because the nation does not have control over the oil prices in the international market but on the volume of its daily production.”
He, however, said that the increase in oil prices in the international market had made more dollars available for manufacturers to import raw materials.
Adegbite said this had also resulted to increase in expenses of the Federal Government through the subsidy paid on petroleum products imports.