With news of the conflict between Nigeria’s oil regulatory bodies and the Dangote Refinery gaining public attention, where does this faceoff leave the country’s four nonoperational state-owned refineries?
Development Diaries reports that the Chief Executive of the Nigerian Upstream and Downstream Petroleum Regulatory Authority (NMDPRA), Farouk Ahmed, recently accused the refinery and other local refineries of having high sulfur levels, up to 650 parts per million (ppm).
He also suggested that the Chief Executive Officer of the refinery, Aliko Dangote, might be trying to monopolise the industry, which he believes could threaten the country’s energy security.
In his response, Dangote asserted that they offer the highest quality products in Nigeria, as he decided to halt his plans to invest in Nigeria’s steel industry to avoid any perception of monopolistic intentions.
Meanwhile, the government has yet to revive the refineries in Kaduna, Warri, and Port Harcourt after failing to meet its December 2023 resumption deadline for the Port Harcourt refinery. This is our concern.
Recall that the Senate’s Downstream Committee had earlier announced that the refineries would be operational in January 2025, a target that is still doubtful to Nigerians given previous failed targets of delivery by the government.
The federal government’s failure to fulfil its promise further widens the trust gap between citizens and the government, because citizens may feel misled by the conflicting timelines. The Minister of State for Petroleum should be talking to Nigerians about the commencement date of the refineries.
Citizens, who have long endured the economic and social impacts of fuel subsidy removal will only view this delay as another instance of government inefficiency and lack of accountability.
While the Dangote refinery, with an estimated full capacity of 650,000 barrels per day, can potentially boost the country’s refining capacity, the federal government should prioritise the resumption of operations of the four public-owned refineries, which have a combined capacity to process around 4.45 million barrels per day.
The government’s aim should be to reduce and eventually stop the country’s dependency on fuel imports.
Development Diaries calls on President Bola Tinubu and the Minister of State for Petroleum (Oil), Heineken Lokpobiri, to provide Nigerians with an update on the commencement of oil refining and production at the state-owned refineries to regain public trust.
