- There has been a constant debate on Nigerian government’s investments to rehabilitate and maintain oil refineries.
- .Despite heavy investment in refineries, Nigeria continues to import refined petroleum products, which has become a matter of serious concern.
- Almost N3.8 trillion has been put into the four petrochemical refineries in Nigeria, which have been moribund.
There has been a constant debate on the Nigerian government’s investments to rehabilitate and maintain oil refineries. Despite heavy investment in refineries, Nigeria continues to import refined petroleum products, which has become a matter of serious concern. Approximately N3.8 trillion has been invested in the four petrochemical refineries in Nigeria, which have been moribund. Over and above this heavy investment, the government has approved a fresh $5.74billion (about N2.35trn) for the rehabilitation, and for taking some stakes in the Dangote Refinery project. Experts are questioning the viability of the investment. They urged the government to keep away from direct investment in crude refining and transfer oil products retailing by selling its shares in its old downstream companies.
Some Petroleum commentators have recommended selling off or concessioning the refineries instead of wasting scarce resources at a time when Nigeria needed more foreign exchange. At the same time, another set of oil industry and economic experts are of the view that successful rehabilitation of the four refineries in the country can bring about lower pump prices, creation of thousands of direct and indirect jobs, less drain on Nigeria’s scarce resource and consequently increase its foreign reserve.
The executive secretary of The African Refiner and Distributor Association (ARDA), Anibor Kragha, pointed out that there is a growing pressure against fossil fuels. Therefore he urged African countries to take necessary steps to develop and add value to their hydrocarbon resources for achieving the continent’s industrial development and overall energy security. The ARDA said that African refineries would need about $15.7bn (+/-50 per cent) to upgrade their facilities to produce cleaner fuels.
