The Acting Managing Director of the Tema Oil Refinery (TOR), Dr. Yussif Sulemana, has emphasized that he is not much worried about the huge indebtedness of the company but rather concerned about putting the refinery back on track.
As of last year, the outstanding indebtedness of TOR hovered around $540 million threatening its sustainability in the long-term.
Amid the huge indebtedness was the inactivity of the company making it dormant in respect to its core business of oil refinery.
But Dr. Yussif Sulemana, who took over the leadership of the company a few months ago under the new government, has begun a journey of transformation to get the refinery back on track. Although the company has not begun the oil refinery, the non-core business of the company has been improved and enhanced, resulting in about a 150% increase in revenues.
Reacting to the company’s staggering debt of about $540 million, Dr. Sulemana emphasized that “I’m not afraid of debt. I’m afraid of inertia.”
Dr. Sulemana dismissed fears that TOR’s huge financial burden could cripple its revival. He rather insists that the real danger lies not in the debt itself but in inactivity and lack of productivity.
“I’m not saying we should go borrowing left, right, and centre,” he clarified. “But look at the debt-to-GDP ratios of countries like Japan, about 200%, and the U.S. is over 100%. Who cares about the ratio if you are productive?”
For the new TOR boss, the focus is squarely on getting the refinery back to work. He believes operational revival and credibility are the true antidotes to TOR’s debt woes.
“If I get TOR to run, I don’t care about the debt. The debt will take care of itself,” he declared. “It’s only a double whammy when you are indebted, and you’re not running. That becomes a problem,” he added in an interview monitored by The High Street Journal.
Dr. Sulemana’s confidence rests on a two-pronged strategy: restarting core refinery operations and scaling up TOR’s terminal business. He believes a productive, credible, and efficient TOR will attract investor trust and generate the revenue needed to reverse its financial situation.
“If we manage to put fire into the refinery like the way we are starting, and we maximise the terminal business, I think we’re going to break down,” he asserted, suggesting a breakthrough is within reach.
His remarks come at a time when TOR is garnering massive interest from private investors looking to partner in its turnaround. And with a new board expected soon to guide due diligence and strategic partnerships, the Acting MD’s vision appears to be one of purposeful transformation rather than throwing his hands in despair.
