The Managing Director of Rainoil Limited, Emmanuel Omuojine, has described modular refineries as essential to strengthening Nigeria’s fuel security, warning that excessive dependence on a single supply source could leave the market vulnerable to disruptions.
Omuojine made the remarks during a panel discussion at the recent NAEC energy conference in Lagos, where industry stakeholders discussed market liberalisation, sector performance, public value and commercial opportunities.
He warned that relying on a single source of fuel supply could create vulnerabilities in the market, noting that such an arrangement, despite its apparent convenience, could prove fragile when disruptions occur.
“We don’t want a single supply that is sweet, but fragile. If there is any disruption, whether it is refinery maintenance, geopolitical tension, or logistics constraints, the whole market feels the shock immediately,” he said.
He said the future of refining in Nigeria and other West African countries depends on developing modular refineries close to major demand centres. According to him, this approach would strengthen fuel supply security and promote competition in the downstream petroleum sector.
He also advocated market-driven pricing, noting that government-regulated prices were unsustainable in the long term and could weaken competition among industry players.
“Pricing should not be fixed by the government, but should be market-driven. As a producer you want to sell at the best price, as a buyer you want the cheapest. Everyone should have the opportunity to compete,” he stated.
Omuojine said forcing suppliers and refineries to sell petroleum products below international market prices to prioritise domestic supply could discourage investment and lead to artificial scarcity.
He added that coastal refineries should be allowed to purchase domestic crude at competitive, market-reflective prices rather than being required to sell refined products below prevailing market rates.
“Telling suppliers to sell at below-market price is not the most effective way to guarantee supply. The market must reward efficiency,” he added.
