Bisola David
The Statistical Review of World Energy 2023 report has noted that Nigeria’s local refinery output has decreased by 92% in ten years.
According to The Punch, the report shows that output from the country’s four refineries has dropped from 92,000 barrels per day in 2012 to just 6,000 barrels per day in 2022. This represents a 92% decrease in production capacity.
The information came from a report published in the 72nd edition of Energy Institute.
This came as the latest report from the Organisation of Petroleum Exporting Countries’ Annual Statistical Bulletin 2023 revealed that the country’s crude oil refining capacity fell from 33,000 bpd in 2018 to 6,000 bpd in 2022, representing about 81 per cent drop in production output.
Despite having four government-owned refineries, the country’s continued importation of refined petroleum products has raised concerns.
The refineries—two in Port Harcourt and one each in Warri and Kaduna—can process approximately 4.45 million barrels of crude oil per day.
The Minister of State for Petroleum, Heineken Lokpobiri, stated in August that the Port Harcourt plant would eventually begin operations by the end of this year, despite several delays.
He also stated that the Warri and Kaduna refineries would begin crude oil processing in the first quarter of 2024.
The Port Harcourt refinery is undergoing a $1.5 billion upgrade, with the minister emphasizing that the goal of the revamping is to reduce, and eventually remove, the country’s reliance on fuel imports.
Despite having four government-owned refineries, the country’s continued importation of refined petroleum products has raised concerns.
The Nigerian National Petroleum Company Ltd, the state oil company, halted payment of petrol subsidies in June due to the high cost of importation.
As a result, petrol prices rose from N189 to N620 per litre in Lagos and its environs, and N700 and higher in the North.
According to the National Bureau of Statistics’ Premium Motor Spirit Price Watch Report for October 2023, the average price of petrol was N631, a 223 per cent increase over the value recorded in October 2022 (N195).
Despite having four government-owned refineries, the country’s continued importation of refined petroleum products has raised concerns.
“Importing petroleum is not a sustainable way for a country to run. The fact that the price of PMS has risen to over N600 per litre indicates that the business dynamics are difficult. Bringing products requires large sums of US dollars. “The way forward is to revitalize local refineries,” he says.
According to the National Controller Operations of the Independent Petroleum Marketers Association of Nigeria, Mike Osatuyi, while the association supports local refining of petrol, an alternative such as compressed natural gas could also be explored.
