The Crude Oil Refinery-owners Association of Nigeria has noted that Nigeria is gradually emerging as a refining hub in West Africa, but raised concerns over supply challenges faced by existing refineries.
This statement came as the association welcomed the Nigerian Midstream and Downstream Petroleum Regulatory Authority issuing a license for a new private refinery in Delta State, according to Nairametrics.
NMDPRA announced earlier this week that it granted MRO Energy Limited a license to build a 10,000 barrels per day refinery in the Ughelli area of Delta State.
“The authority Chief Executive, Farouk Ahmed presented a License to Establish a 10,000 Barrels Per Stream Day Refinery at Imode in Ughelli, Delta State, to MRO Energy Limited,” the agency said.
In an interview, CORAN Publicity Secretary, Eche Idoko stated that the association welcomes the anticipated addition of the new refinery but emphasized the need for the government to address the ongoing supply challenges faced by local refineries.
He pointed out that with the addition of the Dangote Refinery and other private and state-owned refineries, Nigeria is steadily becoming a refining hub in West Africa.
He also mentioned that the increasing number of refineries in Nigeria would impact the pricing and supply of petroleum products worldwide, positioning Nigeria as a key player in the global petroleum market.
“Just like Rotterdam (in the United States) is a reference point when it comes to refining in the world, we (Nigeria) can become a reference point as well,” he said.
“We are committed to how we can transform Nigeria from an import-dependent country to an export hub in Africa.
“And the good thing is that we are seeing the trend already. You can see how Dangote is influencing prices globally.”
Idoko praised the Midstream Regulatory Authority for its efforts in promoting the establishment of local refineries in Nigeria.
He revealed that the agency reduced the licensing fee for new refineries last year, noting that this, along with other Federal government initiatives aimed at boosting the downstream sector, is producing positive results.
“One of the major things NMDPRA did was to cut the cost of licensing for establishment of refineries,” he stated.
However, despite the increasing number of refineries in the country, Idoko expressed disappointment that the Federal Government has not fulfilled its promise of making crude oil more accessible to local refiners.
He stated that the Nigerian National Petroleum Company Limited has not met the supply needs of local refineries, leaving them struggling to secure crude.
Idoko also revealed that the Naira-for-crude initiative introduced by President Bola Tinubu has been halted, affecting the supply of crude to local refineries under the program.
“However, the issue of crude supply is still something that needs to be addressed. As I speak to you, none of the modular refineries are getting crude supplies from the government not to talk of getting it with Naira. Also, the crude for Naira initiative of the President has stopped as I speak to you,” Idoko said.
MRO Energy Ltd is an indigenous company that offers energy solutions specializing in petroleum engineering, project management, and related services.
