The Nigerian Renewed Drive for Domestic Refining …

Abiola Hammed
Jul 23, 2017 · 2 min read

In a media briefing, on 19th of July, after the weekly Federal Executive Council (FEC) meeting, the minister of state for petroleum: Dr Ibe Kachikwu stated the intention of the Federal government to put an end to the importation of refined petroleum products by 2019. While this has been a reoccurring trend where government make public announcements of intents with little actions to back them up, the current interplay of several factors could drive the actualization of this promise this time around.

A snapshot of the Nigeria Oil Sector
According to data from the BP Statistical Review of World Energy released in June 2017, Nigeria occupies the 13th position in the global production of crude oil (a lot of people will argue the right word for the Nigeria production should be just “Oil exporter”). The Nation, due to perennial neglect and institutional misappropriation, tends to be invisible in the world refining landscape.

The paradox of producing approximately 2% of the global crude oil and importing refined products to satisfy the domestic demand has created a lacuna over the years that has been exploited by opportunists and the almighty “cabals”.The existence of inefficiency in any sector breeds opportunists who exploit and further drives such situation for their over-blotted private benefits. The renewed hope from the FEC is definitely going to threaten a substantial part of such opportunists’ “cash-cow” who have over the years reinforced their presence with formal and informal support from government officials.

While the renewed drive for licensing modular refineries (32 issued already), gradual pickup in revenue generation from the existing refineries and the ongoing Dangote Refinery (with the 25 other refinery license holders) must have influenced the 2019 deadline given, the renewed government’s intent in correcting the flaw existing in its oil industry further calls for a clear, concise, and definitive approach to achieving such an “ambitious” goal within the two years timeline.

Abiola Hammed
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